Surprisingly, more than 60 percent of the population of Meghalaya is either in small-scale businesses or self-employment ventures. The government has also realized the potential of local entrepreneurship and has come out with a specific scheme called Meghalaya scheme for entrepreneurs to empower the startups, small businesses and youth owned businesses in the state. This scheme provides financial assistance, advice and training to help you make your ideas a reality whether you are starting up or growing your existing business. This blog will guide you about all you must know about the Meghalaya scheme for entrepreneurs including the benefits, eligibility and the procedure of application.
What is the Meghalaya Scheme for Entrepreneurs?
The Meghalaya Scheme for entrepreneurs is a scheme of the state government to assist the people of Meghalaya to start and expand their own businesses. It provides funding, and other services to facilitate business, particularly to the youth, women, and rural entrepreneurs. Other useful programs have been initiated by the government along with this primary scheme.
Some of the major schemes associated with this initiative are as follows:
- Prime Meghalaya Scheme- The scheme is popular that provides funding, mentoring, and support of startups to new entrepreneurs.
- Unemployed Youth Schemes in Meghalaya – Special schemes that train youth in skills and offer startup facilities to the unemployed youth.
- Meghalaya Rural Bank Loan Scheme- Provides business loans with rural banks, particularly, in agriculture and small business in villages.
- CM-Elevate Loan– This is a loan program sponsored by the Chief Minister to enable new businesses to develop at an accelerated rate because of easy access to credit and subsidies.
- MSME Loan Scheme New Business – Provides financial assistance to establish or grow micro, small and medium enterprises in the state.
- PMEGP Scheme Meghalaya– It is a central government scheme that helps in self-employment by providing subsidized linked loans to start up small businesses.
These programs work together to make the Meghalaya Scheme for Entrepreneurs a strong support system for anyone looking to start a business in the state.
- Credit Linked Capital Subsidy Scheme (CLCSS)
- Pradhan Mantri MUDRA Yojana (PMMY)
- Prime Minister’s Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-up India
- SIDBI Make in India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE)
- CM-ELEVATE Program
- Meghalaya Industrial & Investment Promotion Scheme (MIIPS)
Credit Linked Capital Subsidy Scheme (CLCSS)
Meghalaya Scheme for Entrepreneurs includes initiatives like the Credit Linked Capital Subsidy Scheme, which 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)
Meghalaya Scheme for Entrepreneurs includes various central and state initiatives like The Pradhan Mantri MUDRA Yojana (PMMY), 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)
Meghalaya Scheme for Entrepreneurs supports a range of programs, including PMEGP, which is a credit-linked subsidy scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME), aiming at creating job opportunities by establishing micro-enterprises. The main target of this scheme is Women, Traditional and prospective artisans, and Unemployed youth. It also aligns well with the goals of the Prime Meghalaya Scheme, which focuses on empowering local entrepreneurs through skill development and financial support. 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).
Meghalaya Scheme for Entrepreneurs includes financial support programs like CGTMSE, 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, making it an ideal option under the MSME loan scheme for new business. In case of any default, the bank can file a claim with CGTMSE. This also aligns with broader schemes for unemployed youth in Meghalaya aiming to promote inclusive entrepreneurship. 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 |
CM-ELEVATE Program
The CM-ELEVATE Program is a major component of the Meghalaya Scheme for Entrepreneurs, which aims to assist young and innovative business minds in the state. The scheme will assist new entrepreneurs through a capital subsidy of between 35 and 75 per cent of the project cost. It also involves co- payment of EMIs with banks which makes it convenient to pay loans. The program will alleviate the burden of finances and promote business concepts in other sectors such as agriculture, tourism, and technology.
Key Features:
- Eligibility: Those who are individuals and startups registered in Meghalaya and have viable business ideas.
- Capital Subsidy: Provides 35 to 75 percent subsidy based on type of projects.
- Bank Partnership: Assists in offering EMI through partnering with the banks.
- Focus Group: Youth, Women, and first-time entrepreneurs.
- Sector Coverage: It supports agribusiness, tourism, food tech, and so on.
- How to apply: apply online using the PRIME Meghalaya portal with a business plan.
Meghalaya Industrial and Investment Promotion Scheme (MIIPS)
Another very powerful scheme in the Meghalaya Scheme for Entrepreneurs is the Meghalaya Industrial & Investment Promotion Scheme (MIIPS). It promotes individual investments in industries, tourism, and healthcare through provision of financial and infrastructure resources. The scheme is perfect for individuals who are interested in either starting up or scaling up their businesses in areas of importance within the state, particularly in Tier 2 and Tier 3 areas.
Key Features:
- Eligibility: Open to entrepreneurs establishing or expanding business in Meghalaya.
- Incentives: It offers subsidies to capital investment, power consumption and tax reimbursement.Focus Areas: Targets teaprocessing, nursing homes, wellness centers and film production.
- Infrastructure Support: Support in land and building set up of new units.
- Employment Boost: Benefits in creation of local employment.
- Application: The proposals may be made on the Meghalaya Single Window Portal.
How can Finline Assist you to Create a Project Report for Bank Loan?
The Meghalaya Scheme for Entrepreneurs is an excellent chance for the individuals of the state to initiate or expand their business. Entrepreneurs can also be assisted with the financial help and support they require to become successful through schemes such as MSME Loan Scheme of New Business. These schemes are aimed at helping you out whether you are a new or an existing business that may want to grow.
You must have a clear and professional project report in order to be able to apply to these schemes. Fine, that is where Finline can assist. Finline is an online platform which allows you to build a full business plan in 10 minutes. It is Canva, but for financial reports, and it is accepted by every bank in India.
When you are ready to borrow a loan or funding then use Finline to prepare your report in a short time.
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