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Top Government Schemes to Empower MSMEs in India

MSME means Micro, Small and Medium Enterprises. In simple terms, they are those small businesses which can be run without hefty investments and machines, but are still an important part of our county’s economy. The government has started many schemes which provide them financial aid, training and technical support etc. Let’s discuss these 5 government schemes.

 PRADHANMANTRI MUDRA YOJANA  (PMMY)

The government made this scheme in 2015 to help small businesses in getting easy and cheap loans without bank guarantee. It provides unsecured loans to small shopkeepers, artisans, manufacturers and women etc. It is suitable for startups as the interest rate is relatively low and there is minimum paperwork. It has 3 categories – Tarun, Kishore and Shishu. In the Shishu category, a loan of only ₹50,000 is available, while in the Kishor category, a loan of ₹50,000 to ₹5,00,000 is available. In the Tarun category, a loan of ₹5,00,000 to ₹10,00,000 is available. For this you can apply by visiting the nearest bank, NBFC or MFI. You can also apply online on the site www.mudra.org.in.

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CREDIT GUARANTEE FUND TRUST FOR SMALL AND MEDIUM ENTERPRISES

This scheme was created in 2000 for businesses that want to take loans without security. All new and existing businesses can apply for this. The application has to be submitted by visiting your nearest bank. In this, loans up to ₹ 2 crore will be available without security and the bank and NBFCs are protected from losses. This is very beneficial for starting a new business and expanding your business.

 PRADHANMANTRRI RROJGA SHRIJAN KARYAKRAM

To promote self-employment and reduce unemployment in urban and rural areas of the country, the government launched this scheme in 2008. Under this, any person above 18 years of age can take a loan to start his own business.

The general category will get 25% subsidy in rural areas and 15% in cities, while SC/ST/OBC/women/disabled will get 35% subsidy in rural areas and 25% in urban areas. For this, you can apply online on the website – www.kviconline.gov.in. You can also apply by visiting the District Industry Centre.

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 CHAMPIONS PORTAL

The government created this scheme in 2020 to solve the problems of MSMEs and help them become self-reliant. MSMEs who are struggling after Corona or want to expand their business can contact here. Many services are provided here like problem solving, information about government schemes, business guidance and marketing and technology support.

 MSME SAMRIDDHI YOJANA

This is not a scheme but an initiative. Under this, the government has helped the MSME sector to become digitally capable, self-reliant and competitive. Under this, the government has launched several sub-schemes and portals. Sampark Portal is an example of this, it is an employment portal.

Youth use it to find jobs and companies use it to provide jobs. It connects trained youth with MSMEs. Samadhan portal is the next example, it resolves the issues of pending payments. If an MSME is not getting the payment on time, it can contact here. Next comes the Sambandh Portal, it encourages public sector companies to procure from MSMEs. This increases the participation of MSMEs in government procurement.

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 CONCLUSION

All these schemes created by the government help small businesses not only to grow but also to make them sustainable and competitive. With the help of these schemes any person can start his own business. He does not need any big amount. These schemes are participatory and beneficial in the initiative to become self-reliant.

If you’re also struggling with low sales in your business, this article can be extremely helpful for you. Moreover, if you’re facing any kind of challenge in your business and are looking for expert guidance, click on the link to the Leadership Funnel Program and get in touch with us now.

 

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Finance

5 Schemes to Financially Empower Women Entrepreneurs in India

The start-up ecosystem has been blooming in India without any gender disparity, more and more women are also establishing and running their own businesses successfully and independently. In many sectors, the women-led businesses have outshone the male ones. Even the government through its various organisations, several private and public sector banks and other non-banking financial institutions are progressively supporting the women-led initiatives. They are providing loans and funds at easier and flexible terms of repayments and lower interest rates to female entrepreneurs so that they easily overcome the financial bottlenecks and a smooth and efficient functioning of business is undertaken.Women-Led Businesses in India Get Major Boost As Visa Announces Grants To Empower Budding Businesswomen.

Here are 5 schemes to financially empower business women :

Pradhan Mantri Mudra Yojana

Under this central government scheme, loans ranging between Rs 50,000 to Rs 10 Lakh are offered to women entrepreneurs at easy terms of repayments. It is managed by the Micro Units Development and Refinance Agency (MUDRA) and offers loans to production, trading and service sector businesses.

Stree Shakti Package For Women Entrepreneurs

Under this scheme offered by the State Bank of India, women who have at least 50 per cent of the ownership stake can avail a discounted rate of interest by 0.50 per cent if the loan amounts is Rs 2 Lakh or more. The applicant should however taken part in state run Entrepreneurship Development Programmes.

Orient Mahila Vikas Yojana Scheme

Under this scheme offered by the Oriental Bank of Commerce, women who have at least a 51 per cent of the ownership stake can avail loans ranging from Rs 10 Lakh to Rs 25 Lakh without any collateral security. With a payback period of seven years, a concession of up to 2 per cent is also given on the loan. Business Confidence in India Improves As Economic Activities and COVID-19 Vaccination Drive Gathers Pace: NCAER Survey.

Stand-Up India

Under this scheme offered by the Small Industrial Development Bank of India (SIDBI), loans are offered to manufacturing, trading and service sector businesses. Loan amount ranging from Rs 10 Lakh to Rs 1 Crore are offered to the applicant. It can be repaid within seven years from the date of issue.

Bharatiya Mahila Bank Business Loan

Under this scheme, loans are offered up to Rs 20 Crore for businesses in the manufacturing and production sector. It also provides, a concession up to 0.25 per cent on the interest rates is also provided. Under it, one can avail a loan up to Rs 1 Crore without any collateral security.