Small and Medium Enterprises (SMEs) play a vital role in the economic development of Rajasthan. With the growth of the MSME sector, there has been a significant increase in the demand for financial assistance. To cater to this need, various financial institutions and the government have come up with different loan schemes for MSMEs. These loan schemes are designed to provide financial support and promote entrepreneurship. Here are some of the popular loan schemes available for MSMEs in Rajasthan:

Rajasthan State Financial Corporation (RSFC) MSME Loan Scheme

This scheme is offered by the Rajasthan State Financial Corporation (RSFC) to promote the growth of MSMEs in the state. The scheme provides term loans, special loans and working capital loans to MSMEs engaged in manufacturing, service, and trading activities. Following are some of its details:

Loan amount Upto Rs. 5 crore
Interest Rates 9.75% to 11.50% 
Loan Tenure 3-10 years
Gender Both Male and Female
Residence Indian citizen Residing in Rajasthan

SME Saral Loan Scheme

This scheme is offered by the state government of Rajasthan. SME Saral loans scheme offers both fund-based and non-fund-based facilities. It provides loans for Working Capital, fixed assets needed for business purposes, Capacity expansion, modernization, technology up-gradation etc. Following are some of its main highlights:

Loan amount  Minimum Rs. 10.00 lacs and maximum of Rs. 500.00 lacs.
Interest Rates @8.40% onwards
Loan Tenure Upto 84 Months
Gender Both Male and Female
Residence Indian citizen Residing in Rajasthan

Rajasthan State Industrial Development and Investment Corporation (RIICO) MSME Loan Scheme

This scheme is offered by the Rajasthan State Industrial Development and Investment Corporation (RIICO) to promote industrial development in the state. The scheme provides financial assistance to MSMEs for the establishment of new units, expansion of existing units, and modernization of technology. Following are some of its main highlights:

Loan amount Upto Rs. 50 crore
Interest Rates 8.5% to 11.5%
Loan Tenure 7-10 Years
Gender Both Male and Female
Residence Indian citizen Residing in Rajasthan

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

These are some of the loan schemes available for MSMEs in Rajasthan. Each scheme has its eligibility criteria, and MSMEs can choose the one that best suits their requirements. By availing of these schemes, MSMEs can meet their financial needs and contribute to the growth of the economy.

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