The following are some most popular loan schemes that you can avail in India:

1. PMEGP (Prime Minister’s Employment Generation Programme )

Who is eligible for PMEGP?

  • Any individual above the age of 18 can apply for the scheme.
  • Persons with educational qualifications of 7th standard are eligible for this.
  • There will be no income ceiling for assistance in setting up projects under PMEGP.
  • Categories of Beneficiary’s Rate of subsidy under PMEGP (of project cost) Area (location of project/unit) General category 15% (Urban), 25% (Rural), Special 25% (Urban), 35% (Rural) (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.)

What are the benefits of  PMEGP?

  • The maximum cost of the project/unit admissible in the manufacturing sector is ₹ 25 lakhs and in the business or service sector, it is ₹ 10 lakhs.
  • The balance amount of the total project cost will be provided by the banks in the form of term loans and working capital.
  • It would also include the installation of improved packaging techniques as well as anti-pollution measures, energy conservation machinery, in-house testing and online quality control.
2. MUDRA ( Micro Units Development & Refinance Agency Ltd )

Who is eligible for a MUDRA loan?

  • Individuals, Proprietary concerns, Partnership Firms, Private Ltd. Companies, Public Companies and Any other legal forms are eligible for the scheme.
  • The applicant should not be a defaulter to any bank or financial institution and should have a satisfactory credit track record.
  • The individual borrowers may be required to possess the necessary skills/experience/ knowledge to undertake the proposed activity.

How to repay the MUDRA loan?

  • Term Loan: – To be repaid in suitable instalments with a suitable moratorium period as per the cash flow of the business.
  • OD & CC Limit: – Repayable on demand. Renewal and Annual Review as per internal guidelines of the Bank.
3. CGTMSE ( Guarantee Fund Trust for Micro and Small Enterprises )

Who is eligible for CGTMSE?

  • New and existing Micro and Small Enterprises engaged in manufacturing or service activity excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions etc. are eligible for the scheme.
  • Under the Guarantee Scheme, a borrower is required to obtain an IT PAN number prior to availing of a credit facility from the eligible lending institution. Also, it is a mandatory requirement under section 139A(5) read with section 272(C) of the I. T Act 1961 to indicate IT PAN on all tax documents which include returns, challans, appeals, etc.

What are the benefits of CGTMSE?

  • The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility. The extent of guarantee cover is 85% for micro-enterprises for credit up to 5 lakh. The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit from 10 lakh to 100 lakh per MSE borrower for retail trade activity.
4. CLCSS ( Credit Linked Capital Subsidy Scheme )

Who is eligible for CLCSS?

  • Small and micro-enterprises that belong to sub-sectors specified by the Ministry of MSME will be deemed eligible for this subsidy scheme.
  • Small and micro-enterprises based in semi-urban and rural areas with a valid UAM number are also eligible.

What are the benefits of CLCSS?

  • Micro and small enterprises belonging to the 51 sub-sectors mentioned by the Ministry of MSME are eligible for capital subsidy.
  • The subsidy is available to both existing and new enterprises. The subsidy is available to small and micro enterprises in rural and urban areas.
  • The scheme provides eligible MSEs with a 15 per cent capital subsidy, capped at a maximum of INR 15 lakh, for upgrading their technology with the well-established and improved technology approved under the scheme.
5. NSIC ( National Small Industries Corporation )

Who is eligible for NSIC Subsidy?

All Entrepreneurs and MSMEs who have started their business and have started commercial production for 1 year or less can apply for a provisional NSIC certificate with a validity of 1 year.

  • The SC/ST units shall be eligible for an upfront 100% subsidy on the fee of NSIC for fresh registration/renewal/amendments/competency certificate and also the inspection fees of the empanelled Inspection Agencies or NSIC including Service Tax applicable.
  • Applicant must be an MSE with a valid Udyog Aadhar Memorandum.

What are the benefits of NSIC Subsidy?

  • Presently, there is a subsidy @ 75% on the rating fee charged by the rating agencies for all categories (General or SC/ST) of MSEs for fresh rating.
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