World MSME Day: Check out THESE loan schemes by govt of India

The Government of India gives several loan schemes to further finance the small-scale businesses which can be used for running their operations, buying new equipment, increasing their business and more.

World MSME Day is celebrated on June 27 every year to mark the contribution made by the small-scale business sector. The Small and Medium Enterprises (SME) sector, gives around 40% to the total GDP of India and it plays a pivotal role in bringing more employment to the country.  The Government of India (GoI) gives several loan schemes to further finance the small scale businesses which can be used for running their operations, buying new equipment, increasing their business and more. 

Check out the schemes offered by the government –

MSME government business loan scheme – This scheme by the Government of India was unveiled as a working capital loan wherein an MSME can get a loan worth Rs. 1 crore in 59 minutes. The interest rate at which this loan is offered is 8% with easy re-payment options. To get the required loans, one needs to enter the GST identification number of the business and then Income Tax Returns in XML format. Also, upload the bank statement for the last 6 months in the business account and then enter the personal, educational, and ownership criteria of the director and submit the application.

MUDRA business loan – This scheme offers loans for small businesses and start-ups via low-cost credit and it gets financed by public and private sector banks. The MSME working in the manufacturing, trading, and service sector can avail of this loan. This scheme comes with three subheads – Sishu loan upto Rs. 50, 000, Kishor loan up to Rs. 5, 00, 000, and Tarun loan up to 10, 00, 000.

Credit Guarantee Fund Scheme for Micro and Small Businesses - This particular scheme provides loans without collateral to businesses that come under the MSME sector. The Credit Guarantee Fund Trust was made by the Ministry of MSMEs and the Small Industries to unleash the CGFMSE scheme.

Udyogini – This scheme is particularly for women empowerment and loans are given to provide support to those who need capital for starting a business.  The maximum loan given under this scheme is Rs. 15,00,000. The eligibility of women to avail this loan is that she should age between 18 years to 55 years. The annual income of the woman’s family must not be above Rs. 15,00,000. Also, other documents that are needed include passport-sized photographs, Below Poverty Line Card, birth certificate, Caste Certificate, Aadhar Card, passbook or bank account, ration card, and certification of income to apply for the loan.

National Small Industries Corporation Subsidy – This scheme aids the growth of MSMEs by giving services including finance, market, technology, and others across the country. NSIC comes with two schemes – Marketing Support Scheme and Credit Support Scheme.