Best Government MSME Loan Schemes in West Bengal for Small Businesses

Are you looking for the best government loan schemes to support your business in West Bengal? West Bengal is the state of rich industrial diversity and there is a lot of scope for new and old entrepreneurs. To facilitate the development of micro, small and medium enterprises (MSMEs), the state government has come up with a number of initiatives to make credit more accessible. As a businessperson seeking funding, it is important to learn about the MSME loan schemes in West Bengal. Not only do these schemes give funding, they do also give subsidies, interest relief, and loans without collaterals to enhance your business. In this blog we are going to discuss the most applicable and useful schemes of MSME loans in West Bengal. So, let’s check!

1. West Bengal State Financial Corporation (WBSFC) Term Loan Scheme

The West Bengal State Financial Corporation (WBSFC) Term Loan Scheme offers financial assistance to entrepreneurs in the MSME sector. The loan can be used to purchase land, buildings, machinery, equipment, and working capital. The scheme is available for both new and existing enterprises in the manufacturing and service sectors aimed at the expansion of the state’s economic outlook and ambit. The following are its main features:

2. West Bengal Minorities Development and Finance Corporation (WBMDFC) Loan Scheme

The West Bengal Minorities Development and Finance Corporation (WBMDFC) Loan Scheme aims to provide financial assistance to entrepreneurs belonging to minority communities in the state. The loan can be used to purchase land, buildings, machinery, equipment, and working capital. The scheme is available only for existing enterprises. The following are its main features:

3. West Bengal Backward Classes Finance and Development Corporation (WBCFDC) Loan Scheme

The West Bengal Backward Classes Finance and Development Corporation (WBCFDC) Loan Scheme aims to provide financial assistance to entrepreneurs belonging to backward classes in the state. This loan scheme is provided under NBCFDC. The loan can be used to purchase land, buildings, machinery, equipment, and working capital. The scheme is available for both new and existing enterprises in the manufacturing and service sectors. The following are its main features:

4. West Bengal State Handloom Weavers’ Cooperative Society Ltd. (TANTUJA) Credit Assistance Scheme

The West Bengal State Handloom Weavers’ Cooperative Society Ltd. (TANTUJA) Credit Assistance Scheme provides credit assistance to handloom weavers in the state. TANTUJA is one central marketing organization (Apex Society) rendering marketing support to Primary Weavers Cooperative Societies and handloom artisans working outside cooperatives through their marketing outlets. The scheme is available for both new and existing handloom weavers. The following are its main features:

5. West Bengal Scheme for Small Road Transport Operators (SRTO)

This loan is available to the service sector in West Bengal. This scheme aims to provide financial assistance for acquiring new passenger commercial vehicles and for meeting initial taxes insurance etc. The subsidy is given to both new and existing MSME units. The following are its main features:

6. West Bengal Composite Loan Scheme:

This scheme aims to provide financial incentives to the tiny sectors in West Bengal. Loan available for acquiring fixed assets and working
capital. The interest rate depends upon your business and sector. The following are some of its features:

7. Swami Vivekananda Swanirbhar Karmasansthan Prakalpa (SVSKP)

The basic objective of the scheme is to provide increased access to credit for the development of rural/urban enterprises by supporting unemployed young individuals and groups of individuals. More stress has been placed on training, especially on trades where the locally available abundant raw materials, wasted due to ignorance, could be utilized for producing finer articles and on traditional crafts where there is sufficient potential. The following are some of its features:

8. Banglashree Scheme

Banglashree is the flagship incentive scheme of West Bengal to the MSMEs which was launched April 1, 2020. The manufacturing units that have been set up after April 2019 and have invested in plant and machinery are eligible to receive comprehensive fiscal support. Subsidies are capital investment subsidies (especially to women, SC/ST and minority entrepreneurs), electricity duty exemptions, energy subsidies, SGST reimbursement, water-conservation reimbursement, and all are dependent on the geographic zone. The scheme also eases the process of accessing funds, lowering expenses, and expanding operations due to a single application and unified inspections through the portal called “Silpa Sathi”. 

9. West Bengal Bhabishyat Credit Card Scheme (WBBCCS)

The Bhabishyat Credit Card Scheme is a collateral-free working-capital/term loans facility, up to 5 lakh, to micro and small entrepreneurs (18-55 years) which was launched in 2024. The state provides the guarantee, which removes the credit limitation on the businesses that are eligible such as manufacturing, services, trade and agribusiness. It is characterized by limited paperwork, electronic processing, and disbursement by the banks. It is very enticing as interest subsidies are given to younger entrepreneurs or the ones with training certificates. Having no guarantor and streamlined processing with the help of the state‑bank working together, the scheme aims at achieving financial inclusion and increase in entrepreneurship in West Bengal. 

10. Incentive Scheme for MSMEs in Powerloom Sector (Interest Subsidy)

This specific scheme was launched on January 1, 2022, and helps to modernize power-loom MSMEs in West Bengal by subsidizing the interest on term-loan by a certain percentage in five years. The interest rebate of 55-70 percent (based on zone) is available to micro and small enterprises, 25 percent to medium enterprises, and 1.75 crore per annum limit per enterprise. Other incentives are subsidies on equipment investment, stamp duty, electricity, SGST refunds, and energy audit, all within a single textile incentive scheme. This comprehensive assistance is to increase competitiveness, raise the quality of production, and generate jobs in the textile industry.

11. West Bengal Incentive Scheme- Interest Subsidy on Term Loan

This State Capital Investment Subsidy, a part of the broader Banglashree, offers interest waiver on the term loans to those MSMEs that invested in fixed assets. It was launched together with Banglashree and provides zone-based subsidies on micro, small, and medium enterprises within 5 years after the launch. Micro/small enterprises are allowed 55-70% and mediums allowed 25% all with limits. This incentive reduces the cost of financing on machinery and infrastructure investments, increasing the viability and enabling fast growth.

You can learn more about all the loans mentioned above by clicking this link: msy.uk.gov.in

About Finline!

To sum up, the MSME loan schemes in West Bengal have a strong base to enable businesspersons to establish, develop, and extend their enterprises with the assistance of the government-supported financial aid. As a new entrepreneur or a veteran business person, you might find the difference in your journey to be substantially impacted by the kind of scheme you decide to use. But loans usually demand a professionally prepared project report, which suits the expectations of the lenders. That is where Finline enters the picture, a low-cost, one-stop platform to produce customized project reports that fit your loan or funding requirements. You can have your business documents ready, quicker and more confidently with Finline. Start Now!