Do you own a small business and want to find financing in Tripura? If yes, you need the MSME Tripura loan schemes. The availability of cheap and convenient loans can be the difference between starting or expanding a business and that is where government sponsored schemes come in handy.
To assist micro, small, and medium enterprises, the MSME Tripura programs are developed to provide financial assistance towards the establishment, development, or operation of the company. Through this blog, we will discuss the most popular loan schemes that small businesses in Tripura can avail of, how they can be availed and the steps that are involved.
What is MSME Tripura Loan Scheme?
MSME Tripura loan scheme is a series of financial assistance schemes introduced by the Tripura government and assisted through the central government schemes in order to enhance the development of small enterprises in the state of Tripura. The Micro, Small, and Medium Enterprises (MSMEs) are crucial to creating jobs and stabilizing the local economy, particularly in such states as Tripura where bamboo manufacturing and handicrafts are highly important industries.
The government provides a number of financial plans, incentives and subsidies to those who own businesses in order to promote business. These plans offer smooth business credits in Agartala and all over Tripura so that small companies can find the financing they require to begin, grow, or modernize their operations.
The MSME Tripura loan scheme has some of the following popular options:
- St Corporation Loan Tripura: A special scheme targeted at assisting Scheduled Tribe entrepreneurs in Tripura in terms of business loans that are provided at low-interest rates.
- Swavalamban Loan Scheme Tripura: A state sponsored scheme that aims to encourage self-employment among youth and small business persons through providing subsidized loans.
- Tripura HAM Loan: This scheme assists Home-based Agro and Manufacturing (HAM) activities, particularly in rural and semi-urban regions, in expanding small businesses.
- PMEGP Loan Tripura: The Prime Minister’s Employment Generation Programme (PMEGP) provides financial assistance to first-time entrepreneurs in Tripura to set up new ventures.
These schemes make it easier for MSMEs in Tripura to access working capital, buy machinery, expand their workspace, and hire staff. The government also provides technical support, training, and marketing assistance to help small businesses succeed.
In this blog, we will explore each of these MSME Tripura loan schemes in detail. You’ll also find eligibility criteria, benefits, and step-by-step guidance to help you choose the right scheme for your business. The top MSME Tripura loan schemes are:
- ST Corporation Loan Tripura
- Swavalamban Loan Scheme Tripura
- Tripura HAM Loan
- Credit Linked Capital Subsidy Scheme (CLCSS)
- Mahila Udyam Nidhi Scheme
- Pradhan Mantri MUDRA Yojana (PMMY)
- Prime Minister’s Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-up India
- SIDBI Make in India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE)
ST Corporation Loan Tripura
MSME Tripura offers the ST Corporation Loan Tripura to aid the Scheduled Tribe entrepreneurs to establish and extend small businesses. The Tripura Scheduled Tribes Development Corporation Ltd. runs this scheme. It assists ST individuals to have easy access to business loans that are subsidized by the government. The plan will help solve the problem of unemployment among tribal populations and encourage financial stability. The money can be utilized by entrepreneurs in purchasing machinery, establishing manufacturing plants, establishing businesses based on services, or trading. The scheme contributes significantly towards empowering tribal entrepreneurs in Tripura.
Key Features:
- Eligibility: Scheduled Tribe entrepreneurs in Tripura
- Loan Purpose: Business setup, expansion, or working capital
- Loan Amount: Up to ₹5 lakh (varies based on project size)
- Interest Rate: Subsidized rates (subject to government guidelines)
- Repayment Period: Flexible repayment up to 5-7 years
- Collateral: Minimal collateral required depending on the loan amount
Swavalamban Loan Scheme Tripura
MSME Tripura also provides Swavalamban Loan Scheme Tripura that aims at encouraging self-employment of the unemployed youth and small business entrepreneurs in the state. The scheme offers financial support to enable new entrepreneurs to begin small businesses particularly in the rural and semi-urban regions. It is aimed at creating jobs by developing entrepreneurs. The scheme motivates people to engage in business such as small shops, handicrafts, agro-based industries and service sector.
Key Features:
- Eligibility: Unemployed youth and small entrepreneurs of Tripura
- Loan Purpose: Start small businesses or self-employment ventures
- Loan Amount: Up to ₹1 lakh for individual entrepreneurs
- Interest Rate: Subsidized interest or partial subsidy on the loan
- Repayment Period: 3 to 5 years
- Collateral: Generally collateral-free for small amounts
Loan Tripura HAM
Tripura HAM Loan is promoted by MSME Tripura, which is an acronym of Home-based Agro and Manufacturing Loan. The business scheme is helpful to small businesses and persons involved in home-based agro-processing, handicrafts, and manufacturing activities. It is expected to stimulate local manufacture and to strengthen local families, allowing them to transform their household-based operations into reliable sources of income. The Tripura HAM Loan offers low-interest financial assistance to expand business, purchase raw materials or purchase small machinery to manufacture.
Key Features:
- Eligibility: Rural and home-based entrepreneurs in agro or manufacturing sectors
- Loan Purpose: Agro-processing, handicrafts, and home manufacturing
- Loan Amount: Up to ₹2 lakh depending on business needs
- Interest Rate: Subsidized rates or interest subvention by the state government
- Repayment Period: 3 to 5 years with flexible EMIs
- Collateral: Usually collateral-free for smaller loans
Credit Linked Capital Subsidy Scheme (CLCSS)
MSME Tripura offers access to the Credit Linked Capital Subsidy Scheme, which 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 |
Mahila Udyam Nidhi Scheme
MSME Tripura offers various support programs, and one of them is the Mahila Udyam Nidhi Scheme, which 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. 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 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)
MSME Tripura 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).
MSME Tripura follows the CGTMSE, 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
MSME Tripura offers access to various central schemes, and one of them is Stand-up India, 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 |
How To Develop a Project Report for Bank Loan with Finline?
Small business owners, startups, and entrepreneurs in Tripura will have a wonderful chance to receive the necessary financial support as the MSME Tripura loan schemes are a wonderful opportunity to get the loan. Be it the ST Corporation Loan, Swavalamban Loan Scheme, Tripura HAM Loan, or PMEGP Loan, the government is easing the way to business growth by providing business loans.
But in order to be able to apply for any one of these loans successfully, you require a well prepared project report. Finline can assist at this point. Finline is a web-based application that allows you to make professional financial reports and business plans within ten minutes of your time-in your own language. Fline reports are accepted in all banks both across the public and the private sector, and this eases your process of applying loans to your MSME Tripura at a quicker rate.
Finline now allows you to create your project report, click here!