MSME Loan schemes available in Chhattisgarh

The MSME sector plays a vital role in the economic development of Chhattisgarh, contributing significantly to employment generation, income growth, and overall economic prosperity. However, MSMEs often face several challenges, including access to finance, inadequate infrastructure, and regulatory hurdles. To address these challenges, the Chhattisgarh government has introduced various loan schemes aimed at promoting and supporting the growth of MSMEs in the state.

These loan schemes offer financial assistance to MSMEs across various stages of their business lifecycle, from setting up a new enterprise to expanding an existing one. By availing of these loan schemes, MSMEs can access the much-needed capital to purchase machinery and equipment, hire skilled labour, improve their infrastructure, and expand their operations.

Mukhyamantri Yuva Swarjgar Yojana (MMYSY)

The state government of Chhattisgarh launched Mukhyamantri Yuva Swarjgar Yojana (MMYSY) to reduce unemployment through self-employment. Under this scheme, the government provide loans to eligible beneficiaries to start their business. Following are some of its highlights:

Chhattisgarh Gramin Bank (CGB) MSME Loans

The Chhattisgarh Gramin Bank (CGB) provides loans to MSMEs in rural areas of the state for setting up new projects or expanding existing ones. They provide term loans and cash credit facilities to small businesses, SSI, traders, professional and self-employed rural artisans etc. The following are its main highlights:

Credit Linked Capital Subsidy Scheme (CLCSS)

Credit Linked Capital Subsidy Scheme was launched in October 2000 by the Government of India. This scheme provides necessary funds to MSMEs for upgrading their existing technologies. Enterprises can use this scheme to upgrade their existing plant and machinery and increase profit. This scheme has no upper loan limit, but the subsidy is calculated on the loan amount sanctioned for P&M purchase only. The following are its main features:

Pradhan Mantri MUDRA Yojana (PMMY)

The Pradhan Mantri MUDRA Yojana (PMMY) is a flagship central government scheme launched in 2015. It provides micro-loans to non-corporate, non-farm micro and small enterprises in both rural and urban areas.

PMMY offers loans under three categories, depending on the stages of business growth and funding needs:

• Shishu Mudra: Up to Rs. 50,000
• Kishore Mudra: Rs. 50,001 to Rs. 5 lakh
• Tarun Mudra: Rs. 5 lakh to Rs. 10 lakh

MUDRA loans are availed through various financial institutions, including Public sector banks, Private sector banks, Regional Rural Banks, Small Finance Banks, Microfinance Institutions, and Non-Banking Financial Companies (NBFCs).

Unlike other loan schemes, PMMY doesn’t have specific criteria for age, gender, tenure, interest rates, etc. All these factors can vary based on the loan category and the lending institution’s policies.

Prime Minister’s Employment Generation Programme (PMEGP)

PMEGP is a credit-linked subsidy scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME), which aims at creating job opportunities by establishing micro-enterprises. The main target of this scheme is Women, Traditional and prospective artisans and Unemployed youth. The following are some of its main features:

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

CGTMSE is a joint initiative launched in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India (SIDBI). It encourages financial institutions to provide collateral-free credit schemes to micro and small enterprises. In case of any default, the bank can file a claim with CGTMSE. The following are some of its main features:

Stand-up India

Stand-up India is a central government scheme launched in 2016. It provides bank loans for entrepreneurship among women and members of Scheduled Castes (SCs) and Scheduled Tribes (STs). Existing businesses cannot avail loans through this scheme, as these are provided for starting new businesses. These loans are provided through various banks, including scheduled commercial banks, regional rural banks (RRBs), and small finance banks.

This scheme provides loan amounts ranging from Rs. 10 lakhs to Rs. 1 crore. The interest rates and tenure vary depending on the nature of the business and other factors such as the nature of the business, credit policies of the lender, etc.

SIDBI Make in India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE)

SMILE is a scheme launched by the central government to provide financial assistance to 25 Identified sectors under the ‘Make in India’ initiative. This scheme promotes the ‘Make in India’ initiative among entrepreneurs. SMILE provides adequate funding for the setting up of new enterprises and also for the expansion of existing ones. The following are some of its main features:

In addition to the various loan schemes offered by the government, there are also several private lenders and NBFCs that provide loans to MSMEs in Chhattisgarh. However, to avail of these loans, entrepreneurs must submit a detailed project report that outlines their business plan, financial projections, and other relevant information.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.