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Top 5 Government Business Loan Schemes in India 2021 | Watch Video
Business Loans : MSME entities face a lot of hurdles to get the right kind of financial support to existing business activities or for business expansion. We bring to you top 5 government loan schemes which can help MSMEs with financial aid
An economy’s growth depends on its MSMEs i.e. Micro, Small and Medium Enterprises. Presently, the MSME sector provide about 11.10 crore jobs across the country contributing to 8 per cent to the overall GDP. In fact, these small enterprises are responsible for about 40 per cent of the total exports, and 45 per cent of the country’s manufacturing output.
Yet, like all fledgling businesses, MSME entities face a lot of hurdles to get the right kind of financial support to existing business activities or for business expansion.
We bring to you top 5 government loan schemes which can help MSMEs with financial aid
MSME Loan in 59 Minutes
This scheme, also known as PSB Loan in 59 minutes, introduced to get a quick business loan for the individuals who need to expand their existing business.
Under this scheme, MSMEs can get loan amounts from INR 1 lakh to INR 5 crores in less than 59 minutes at an interest rate of 8.50% from public and private sector banks and NBFCs.
Pradhan Mantri MUDRA Yojana (PMMY)
MUDRA scheme provides refinancing support to Banks and NBFCs for lending to Micro units having loan requirements up to INR 10 lakhs under 3 categories as ‘Shishu’, ‘Kishore’ and ‘Tarun’ to signify the stage of growth/development. Under this scheme, credit is given as Business loan for the vendors, traders, shopkeeper, vehicles for commercial use and equipment finance for micro-units.
Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGFMSE)
CGFMSE is a Government business loan scheme which allows collateral-free credit to the MSME sector. It includes both existing as well as new enterprises. Under this funding scheme, MSMEs get access to a loan amount of up to INR 2 crores with a special preference to eligible women.
National Small Industries Corporation (NSIC)
NSIC is an ISO certified Indian Government enterprise under MSMEs. NSIC aids and promotes the growth of MSMEs by providing finance, marketing, technology and other allied services to encourage the growth of MSMEs.
Under this scheme the small industries can get aid for Marketing Support which is crucial for the growth of MSMEs in the present intense competitive market and Credit Support Scheme which helps provide finance for raw material procurement, finance for marketing activities and finance through syndication with banks to MSMEs.
Credit Linked Capital Subsidy Scheme (CLCSS)
The primary objective of the credit linked capital subsidy scheme is to aid the technology up-gradation of MSMEs, especially in rural and semi-urban areas. Under this scheme, Under CLSS businesses can opt for a 15 per cent subsidy on investment in eligible machinery. However, there is a maximum cap on the subsidy restricting it to INR 1 crore.