MSME Loan schemes available in Sikkim

The state of Sikkim, nestled in the foothills of the Himalayas, is known for its scenic beauty and tourism industry. However, the state government is also promoting the growth of Micro, Small and Medium Enterprises (MSMEs) in the state. To provide financial assistance and boost entrepreneurship, various MSME loan schemes have been launched by both the central and sikkim state governments. These schemes cater to the diverse needs of MSMEs, ranging from start-ups to established businesses looking to expand.

In this blog, we will take a detailed look at the various loan schemes available for MSMEs in Sikkim. We will explore the eligibility criteria, benefits and features of each scheme. Additionally, we will also provide separate tables for each scheme, outlining the specific details such as gender, qualification, age group, social category, industry profile, rural/urban and government affiliation. With this information, MSMEs in Sikkim can make informed decisions and choose the most suitable loan scheme for their business needs.

Youth Skilled Startup Scheme Sikkim

Taking the spirit of Atmanirbhar Bharat forward the government of Sikkim has envisioned the Youth Skilled Startup Scheme to promote equitable entrepreneurial opportunities among the educated unemployed mass in Sikkim. This is one of the best MSME loans that you can take if you are from Sikkim. The scheme provides back-ended bank loan subsidy assistance @ 50% for BPL and 35% for others on financially viable bankable projects. The following are some of its features:

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 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:

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:

Note: The information provided in the tables is subject to change. Please visit the respective scheme websites for the latest updates and eligibility criteria.

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