Passion is not the only thing in running a small business, but you must have the right financial backing. There is good news, especially when you are an entrepreneur or a small business owner in Telangana. There are various useful alternatives of MSME loans in Telangana provided by the government and it was specifically created to aid local businesses such as yours. These loans are flexible in terms and low interest rates whether you are starting a new venture or expanding an ongoing venture. Better still, most of them are subsidy loans in Telangana, and this implies that you can receive additional support in the form of finances by the government. We will give you a step by step process on how to apply the best schemes available in this blog.
What are the Subsidy Loans in Telangana?
Subsidy loans are special governmental financial aids that are offered to small businesses and entrepreneurs in Telangana. These loans ease the financial burden by partially waiving off loans, subsidizing interests or providing capital to people of different backgrounds to expand their ventures easily.
The following is what you should know:
- Telangana MSME Schemes provide loans on subsidy basis to the micro, small and medium enterprises in manufacturing, services and trade.
- To ensure inclusive economic growth, TS Subsidy Loans can be offered to minorities, women entrepreneurs and rural youth.
- The SC/ST Subsidy Car Loans in Telangana aid in purchasing a vehicle by a member of the Scheduled Caste and Tribe with the purpose of business or self-employment.
- Subsidies of 15-80 % are provided under Telangana Government Loan Schemes depending on the category of the applicant and the guidelines under the scheme.
- Most of the subsidy loans are used to finance the initial capital investment, purchasing of machinery, setting up of infrastructure or expansion of the business.
What are the Major MSME Loans in Telangana?
There is a lot of financial assistance available in Telangana through the different Telangana government loans for business to enhance local entrepreneurship. Some of the most well-known Telangana MSME schemes include the Prime Minister Employment Generation Programme (PMEGP), Stand-Up India, and MUDRA loans that assist small and micro enterprises in gaining access to easy credit. Such plans are usually accompanied by low interest rates, medium requirements and even subsidies therefore suitable for startups and small industries. The state also offers some TS subsidy loans to facilitate self-employment and innovation among the youths, women and rural entrepreneurs.
The government has also come up with special support schemes such as SC/ST subsidy car loans in Telangana to those who want to begin taxis or logistics companies. They are included in the larger initiatives of the Telangana government loan schemes to offer financial inclusion among the communities. These specific schemes provide the much-needed capital and assistance whether you are opening a small manufacturing unit or a local business that provides services to people.
T-PRIDE
TS-PRIDE (Telangana State Program for Rapid Incubation of Dalit Entrepreneurs) is an initiative by the Telangana government to promote entrepreneurship among Dalits in the state. The schemes offer financial assistance and incentives to encourage business development and empower these communities. Through this scheme, land will be allotted to SC / ST Entrepreneurs in proportion to their population in the State. This initiative is also a part of promoting msme loan in telengana and supports various subsidy loans in telengana for marginalized communities. The following are some of its benefits:
| Loan amount | Rs.10 Lakhs – Rs.50 Lakhs |
|---|---|
| Subsidy on investments | 15% to 35% depending on the nature of the business |
| Interest rates | 3%-9% |
| Category | SC/ST |
| Gender | Male/Female |
Telangana State Minorities Finance Corporation (TSMFC) Bank Linked Subsidy Scheme
The Telangana State Minorities Finance Corporation (TSMFC) Bank Linked Subsidy Scheme provides concessional Subsidized Loans with Bank Linkage for Minorities in the state for the establishment and expansion of MSMEs. This scheme is one of the best MSME loan schemes provided by the Telangana government for the minority community. The financial assistance from the TSMFC by way of subsidy would be linked to the credit component of Banks. This initiative falls under major Telangana MSME schemes and supports Telangana government loans for business. It’s also a vital part of the larger framework of msme loan in Telangana. Following are some of its benefits:
| Subsidy | 80% maximum of Rs.80,000/- or 70% subject to maximum of Rs.1.40 lakh depending on Unit cost |
|---|---|
| Age | 21 – 55 years |
| Annual income | Maximum Rs.2,00,000 |
| Gender | Male/Female |
| Category | Minority community |
T-IDEA
T-IDEA stands for “Telangana State Industrial Development and Entrepreneur Advancement” incentive scheme. This scheme is especially for general category entrepreneurs. This scheme provides an additional 10% investment subsidy on fixed capital investment limited to Rs. 10.00 lakhs to MSE’s which are solely owned by women. It is also one of the popular options for those seeking msme loan in telangana. Following are some of its benefits:
| Loan amount | Upto Rs.20 Lakhs |
|---|---|
| Subsidy on investments | 15% limited to Rs.20 lakh |
| Category | General |
| Interest rates | 3%-9% |
| Gender | Male/Female |
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 scheme is also beneficial for those seeking an MSME loan in Telangana as it complements various Telangana Government Loan Schemes available for small and medium enterprises. 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 |
Mahila Udyam Nidhi Scheme
The Mahila Udyam Nidhi Scheme provides financial assistance to women entrepreneurs who want to start new ventures or expand their existing businesses. The main motive of the scheme is to empower women entrepreneurs across the state. This scheme also falls under the Telangana Government Loan Schemes designed to support women through accessible msme loan in Telangana. Please note that these schemes are now available only through Punjab National Bank. The following are some of its features:
| Loan amount | Up to Rs. 10 lakh |
|---|---|
| Loan interest | 5% per annum |
| Loan tenure | 5 to 7 years |
| Educational Qualification | 10th standard |
| Age & Gender | Women aged 18 to 55 years |
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 available 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: It is also a popular MSME loan in Telangana for new business owners.
| 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. It is one of the key options available for those seeking an MSME loan in Telangana. 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 |
Why Opt Finline to Prepare the Best Project Report for Bank Loan?
Telangana is a state with a large number of government schemes to help small and medium businesses in the state, which makes obtaining MSME loans in Telangana easier than ever. Be it the SC/ST, minority, or general category, there is a scheme that is aimed at helping you to expand your venture.
However, there is one thing that is important in obtaining any business loan and that is a good project report. That is where Finline can assist. Finline is a simple platform where you can create a bank ready project report within 10 minutes. It is fast, accurate and written in your mother tongue. Finline generated reports are accepted by all the major banks in India.
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