In the wake of global digitalization, India's industrial landscape has witnessed increased momentum, prompting the government to bolster trade initiatives. To mitigate financial constraints for enterprises and alleviate potential crises faced by entrepreneurs, various government schemes have been implemented, providing advantageous loan facilities ranging from Rs 10,000 to Rs 5 crore at low-interest rates.
The PM Swanidhi Yojana is designed to assist individuals grappling with severe financial conditions, offering an unsecured loan starting from ₹10,000 for setting up street vending businesses. With a repayment period of one year, the scheme benefits over 50 lakh street vendors, including a 7% subsidy and ₹1200 cashback.
Initiated in april 2015, the Mudra Loan Scheme caters to youth entrepreneurs, providing loans from banks without requiring collateral. It comprises three categories: Shishu Mudra Loan (up to ₹50,000), kishore Mudra Loan (₹50,001-₹5,00,000), and tarun Mudra Loan (₹5,00,001-₹10,00,000).
The Stand Up india Scheme encourages SC/ST and women entrepreneurs by offering loans ranging from Rs 10 lakh to Rs 1 crore without the need for collateral. The loan features a repayment schedule spanning seven years, with a moratorium period of up to 18 months. Additionally, income tax exemption is provided for the initial three years of starting a business.
The National Small industries Corporation (NSIC) Scheme contributes to the growth of MSME enterprises. It encompasses two types of loans: the Marketing Assistance Scheme, facilitating increased product marketing, and the Credit Assistance Scheme, offering financial support for raw materials, finance, and marketing.
The Credit Guarantee Fund Scheme supports startup companies, providing a maximum loan of Rs 5 crore without requiring collateral. The guarantee fee has been reduced from 2% per annum to 0.37% on the sanctioned amount. Meanwhile, the MSME Loan, tailored for micro, small, and medium enterprises, enables businesses to secure loans up to Rs 1 crore, with the loan process typically taking around 15 days to complete.
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