Goa, one of the most popular tourist destinations in India, is also home to many small and medium-sized enterprises (MSMEs). These MSMEs contribute significantly to the state’s economy and provide employment opportunities to the locals. However, like all small businesses, MSMEs in Goa also face financial constraints. To support these businesses, the Goa government, in collaboration with various financial institutions, offers a range of loan schemes. In this article, we will discuss the loan schemes available for MSMEs in Goa.
Chief Minister’s Rojgar Yojana, Goa
Chief Minister’s Rojgar Yojana was launched by the Government of Goa to encourage self-employment (Rojgar) among Goan youth. Through this scheme, beneficiaries can avail loans to set up new business units or to expand existing ones. Following are some of its highlights:
| Loan amount | Up to Rs. 25 lakhs |
|---|---|
| Interest rate | 8% |
| Loan tenure | 5-10 years |
| Residence | Permanent resident of Goa for at least 15 years |
| Age | Between the age of 18 and 50 |
General MSME Term Loan Scheme, Goa
The General Term Loan Scheme is a loan scheme offered by the Economic Development Corporation (EDC) of Goa to micro, small, medium and large enterprises (MSMEs). The purpose of the loan is to provide financial assistance to businesses for setting up projects of eligible industrial activities. Following are some of its highlights:
| Loan amount | Up to 4 crores |
|---|---|
| Interest rate | Between 9.5% -13.5% depending on the credit rating of the applicant |
| Processing fees | 1% of the loan amount |
| Collateral | Required |
| Area operation | Only in Goa |
| Minimum promoter’s contribution | 25% of the project cost |
Goa Tribal Employment Generation Programme(GTEGP) Scheme
The Goa Tribal Employment Generation Programme (GTEGP) Scheme is a government MSME loan scheme formed to support educated unemployed individuals of the tribal communities of Goa. Through this scheme, the government provides subsidies on loans as well as new working capital loans. Following are some of its highlights:
| Loan amount | Up to Rs. 25 lakhs |
|---|---|
| Interest rate | 2% |
| Loan tenure | 60 to 120 months |
| Educational qualification | Minimum standard IVth |
| Age | Between 18 to 45 years of age |
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:
| Loan amount | No upper limit |
|---|---|
| Subsidy | 15% of the loan amount |
| Annual guarantee fee | 0.75%-1.0% |
| Loan tenure | Flexible tenure depending upon the repayment capacity |
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 category of the loan and the policies of the lending institution.
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:
| Age | Minimum age of 18 |
|---|---|
| Interest rate | Between 11% -12% depending on the bank |
| Loan tenure | 3-7 years |
| Education qualification | VIII standard pass |
| Maximum Loan amount | Rs. 1 Crore |
| Subsidy | 15% to 35% |
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:
| Loan amount | Up to 5 crore |
|---|---|
| Collateral | Not required |
| Loan tenure | 5-10 years |
| Annual Guarantee fee | 0.37%-1.35% |
| Age | Minimum age of 18 |
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:
| Loan tenure | Maximum 10 years |
|---|---|
| Loan amount | From Rs.10 lakhs to Rs.25 lakhs |
| Interest rates | Depending on enterprises’ requirement |
| Nature of loan | Quasi-equity and term loans |
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