SIDBI Make in India Loan for Enterprises (SMILE)
Features:
- The scheme has been designed to foster innovation, facilitate investment, protect intellectual property, enhance skill development, and build the best infrastructure for MSMEs.
- Under the scheme, loans will be offered in the forms of soft loan and term loan.
- MSMEs engaged in 25 selected sectors will receive financial support at competitive interest rates as part of the ‘Make in India’ campaign launched by the government of India.
- New enterprises in the services and manufacturing sector will be given importance along with an emphasis on smaller enterprises within the MSME.
- Competitive rates of interest
- Repayment period will be longer
- The loan amount will be dispensed to your bank account quickly.
Pradhan Mantri Mudra Yojana (PMMY)
Features:
- The scheme will extend loans to activities that create employment and generate income in the areas of services, manufacturing, retail, and agriculture.
- No collateral or security need to be provided to avail the Mudra loan.
- Three types of loans can be availed under Mudra for different stages of the business, namely, Shishu, Kishor, and Tarun.
- The loans under the Mudra Yojana will be extended by public sector banks, private sector banks, cooperative banks, Regional Rural Banks (RRBs), foreign banks, Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs).
Credit Guarantee Scheme for Micro and Small Enterprises (CGSMSE)
Features:
- The scheme was launched with an intent to offer collateral-free credit to the micro and small enterprise sector.
- Both working capital facility and term loans are eligible to be covered under the scheme.
- Under the scheme, guarantee cover can be availed up to 85% of the sanctioned amount of the credit facility.
- For microenterprises seeking a loan of up to Rs.5 lakh, MSEs owned and operated by women, and loans in the North-Eastern region, guarantee cover of up to 80% will be provided.
Bank Credit Facilitation Scheme
Features:
- The loans under this scheme are facilitated by the National Small Industries Corporation (NSIC) which has signed a Memorandum of Understanding (MoU) with banks to offer loans to meet the credit requirements of SME units.
- The facilitation is carried out by offering MSME units the option to pick between private and public sector banks.
- The loans are available in the form of working capital and term loans.
- Through this scheme, the NSIC will also help SME units to get loans at affordable rates, help with the documentation process, and other necessary services related to the loan.
Stand-Up India Scheme
Features:
- Designed specially to meet the fund requirements of Scheduled Caste (SC)/Scheduled Tribe (ST)/women entrepreneurs for the purpose of setting up a greenfield enterprise.
- The enterprise should be engaged in the business of manufacturing, trading, or services.
- The loan will be of composite nature which means that the loan will be inclusive of working capital and term loan.
- If the enterprise to be set up is non-individual, the controlling stake (51%) should be held by either an SC, ST, or women entrepreneur.
MSME Loan in 59 minutes
Features:
- You can avail a loan of up to Rs5 crore where the amount will be deposited to your account in less than 60 minutes.
- Minimum documents required. You only have to upload the scanned versions of the required documents and upload it online for you to avail the loan.
- You can avail a loan between Rs.1 lakh and Rs.5 crore under this loan scheme. Since you have the option of availing this loan from any of the lenders, the rate of interest levied may differ. The rate of interest however starts at 8.5%.
Eligibility Criteria
The eligibility criteria for government loans for small scale businesses will vary from lender to lender but the basic ones have been listed below:
Documents Required
How to Apply?
Availing government loans for small scale businesses will not cause you much sweat. Since most government loans are dispensed through banks and financial institutions, you can directly approach them to avail loans. You can visit the nearest branch of the bank or financial institution who will guide you on the loan application process.
Some lenders will also allow you to apply for business loans online on their respective websites. You can visit their websites, fill up the application form provided, upload the relevant documents, and submit it. Once you complete the process and the verification is done from the bank’s end, the loan amount will be credited directly into the bank account you provided during the application process.
