Loans for small businesses under government programs

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India has about 40 million Micro, Small and Medium Enterprises (MSMEs) including registered/unregistered businesses in organized and unorganized sectors.

These MSMEs contribute about 40% of India’s total GDP. The Indian government has put in place various programs to sanction loans to MSMEs to stimulate and support them.

Loans to MSMEs in 59 minutes

Launched under the Atmanirbhar Bharat campaign, under this scheme MSMEs receive approvals in principle for loans of Rs 1 lakh to Rs 5 crore within 59 minutes.

How to register

Eligible borrowers can apply for the loan through the online portal set up by SIDBI.

Pradhan Mantri Mudra Yojana (PMMY)

This loan can be availed by any Indian citizen who has a business strategy in a non-agricultural sector, with income generating businesses such as manufacturing, processing, trading, service sector or any other field whose demand for credit is less than Rs 10 lakh.

How to register

Borrowers can apply online through the Udyami Mitra portal or offline by visiting the nearest bank branch.

SIDBI Make in India soft loan fund for MSMEs (SMILE)

Flagship program of SIDBI, the bank provides loans to MSMEs with flexible or soft terms. Under this scheme, MSMEs can apply for loans between Rs 10 lakh and Rs 25 lakh.

How to register

The borrower can either contact the nearest SIDBI branch or apply online.

India standing

The Government of India has introduced this loan scheme to provide SME loans to SC/ST category people and women led businesses to support entrepreneurship.

How to register

Borrowers can apply online at: https://www.standupmitra.in

Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTSME)

MSMEs can borrow unsecured MSME loans up to Rs 200 lakh from banks and NBFCs. The CGTMSE pays a guarantee fee to the lender in exchange for financial assistance, ranging from 75% to 85% of the sanctioned loan amount.

How to register

Applicants can apply directly to lenders. They must also submit a business model explaining the viability of the project. Website: https://www.cgtmse.in

Bank Credit Facilitation Program

This program facilitates loans to various MSMEs with the help of different private and public sector banks. New and existing MSMEs from all sectors are eligible to apply.

How to register

MSMEs can apply directly to branches of the National Small Scale Industries Corporation (NSIC). Website: https://www.nsic.co.in

Aid scheme for growth capital and equity investments

SIDBI launched this program to provide loans to MSMEs. The loan amount varies and can be used for any bona fide expense.

How to register

Borrowers can approach the nearest SIDBI branch or apply online at https://www.sidbi.in

Prime Minister’s Job Creation Program (PMEGP)

It is a credit linked scheme supported by the Government of India. It focuses on creating self-employment opportunities in the non-agricultural sector by helping unemployed youth and traditional artisans.

How to register

Beneficiaries can submit their application online at https://www.kviconline.gov.in or visit the nearest Khadi & Village Industries Commission (KVIC) office.

Udyogini

The Government of India, under the aegis of the Women Development Corporation, has launched the Udyogini Scheme for Indian Women Entrepreneurs to encourage and provide financial assistance to women to start their own businesses in rural and underdeveloped areas. Under this program, these women entrepreneurs can avail soft loans to start their business activities in different categories.

How to register

Applicants can apply directly to lending banks.

(The writer is a social activist based on Vile Parle)

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