The government of India has launched Numerous micro-small medium enterprises MSME Loan Scheme to entrepreneurs, initiating all possible ways to support new business youngers by financial assistance.
There can be varied purposes to obtain MSME Loan like covering up expenses to purchase inventory, clearing staff salaries, advancing high-tech equipment & enhancing cash flow management.
Key features of MSME Loan
- Get a loan ranging from 5 lakh to 2 Crore.
- MSME Loan for new business is also funded.
- Collateral free loan is available under this credit facility.
- MSME Loan interest rate are much affordable as compared to other loan.
Let's have a glimpse of MSME Loan Scheme below-
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):-
CGTSME stands for Credit Guarantee Fund Trust for Micro and Small Enterprises with the aim motive to encourage new upcoming generation entrepreneurs along with the facility of collateral-free loan where borrowers don’t need to pledge collateral/assets to get financial assistance.
Eligibility Criteria: - This scheme allows both new & existing businesses to get funded mainly engaged in manufacturing & services units.
Loan Amount: - CGTMSE Guarantee covers a maximum 50% of loan amount but not exceeding 1 Cr.
Also Read:-What is Bank Guarantee
Standup India Scheme:-
Standup India Scheme aims to financially support SC, ST & women entrepreneurs per bank branch to set up greenfield projects who are engaged in manufacturing, trading & services activity. Bank generally covers 75% of project cost depending on certain factors.
Eligibility Criteria: - Under the scheme, only greenfield projects are funded, also make sure 51% of shareholding of the company must be owned by SCT/ST or Women entrepreneurs.
Loan Amount: -Bank facilitates credit facility ranging 10 lacs to 1Cr.
PMMY Mudra Yojana:-
Government of India has initiated Pradhan Mantri mudra yojana to promote SC, ST & Women entrepreneurs falling under micro-unit to get financial assistance at affordable rates. Generally, Mudra loan is divided into 3 categories named Shishu, Tarun & Kishor.
Eligibility Criteria: - Applicant should be above 18 years & less than 65 years of age at the time of loan application, credit facility offered to non-farm income-generating activities such as manufacturing, trading, processing & other Servies units.
Loan Amount: -Mudra Loan credit facility covers upto 10 lacs requirements.
Pradhan Mantri Employment Generation Programme:-
To boost MSME growth pradhan Mantri employment generation programme was introduced by government of India.
Eligibility Criteria:- Applicant age needs to be above 18 years & this type of credit facility funds only new projects engaged in manufacturing sector.
Loan Amount: -Borrower can expect loan coverage upto 10 lacs.
Credit Guarantee Scheme for Stand-up India (CGSSI):-
Stand–up India is introduced to boost (SC) scheduled caste, (ST) scheduled tribe & women entrepreneurs' community participation in this developing nation.
Eligibility Criteria: - SC, ST & women entrepreneurs even non-individuals of an existing business can apply but must have 51% of shareholding owned by prior preferred category.
Loan Amount: - Under this credit facility borrowers can get up to 1 Crore to fund their business.
Prime Minister Rozgar Yojana (PMRY):-
One of the programme launched by Government of India is Prime Minister Rozgar Yojana (PMRY) to provide financial assistance to the young generation entrepreneurs engaged in manufacturing, services & trade units. Through this credit facility, you can get upto 5 Lacs at a low processing fee.
Eligibility Criteria: - Unemployed educated individuals are eligible with the age criteria of 18 to 35 years of age at the time of loan application. Apart from these, there are certain relaxations allowed for SC/ST, handicapped, Ex-serviceman & women entrepreneurs under PMRY credit scheme.
Loan Amount: - Under Prime Minister Rozgar Yojana (PMRY) scheme applicants get upto 5 lacs to fulfill financial needs.
Also Read:- Project loan for New business
MSME Loan in 59 Minutes:-
Government of India introduced scheme for micro small medium enterprises MSME Loan in 59 minutes. It's one of the most preferred MSME schemes by borrowers, Loan at 59 minutes that too fully digital method.
Eligibility Criteria: -Business must have continuity of at least 3 years with profitable outcomes, ITR should be filed.
Loan Amount: -MSME Loan in 59 Minutes scheme allows borrowers to get 10 Cr.
National Small Industries Corporation (NSIC):-
It's one of the enterprises of Government of India with the ideal aim to promote units even NSIC has its own setup of training & incubation that is totally managed by well-qualified professionals.
Eligibility Criteria:- All MSEs units with valid Udyog Aadhar Memorandum registered under NSIC are eligible to get subsidy facility.
Loan Amount:- If it’s a single MSME unit then you can get loan upto 5Cr or it’s a group of MSME units - you can get upto 15Cr.
How to apply for MSME Loan Schemes Online?
Follow these below mentioned steps to avail MSME Loan:-
Step 1: - Ensure you choose the right schemes according to your re quirement. Once selected, visit your preferred banking partner official website.
Step 2: - Now click & start filling the loan application by inputting your personal details such as full name, mobile no, email ID, address, date of birth & other relevant details needs to be filled in respective areas.
Step 3: - Tap next page wherein you will be asked to enter business related details as it includes nature of business, sales/turnover, GST, PAN no, bank account & any previous/existing credit details.
Step 4: - Always recheck details are filled with correct value to avoid loan rejection. Thereafter, submit the filled details.
Step 5: - Bank representative will go through your application & review if criteria match with your profile, shortly they will contact you directly for further loan formalities.
Various banks & financial institutions offer MSME loan schemes at specific interest rates that are determined by numerous factors like applicant creditworthiness, repayment history, financial track record, promoter background, type of activities unit engaged & other similar factors are considered to determine interest rate & loan amount. Remember bank to bank criteria & terms get differed.
It is always advisable to maintain good credit history avoid default in payment, for credit card users-limit your usage as these are the keen points to practice getting a hassle-free loan.
Also Read:-Home Loan