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Micro Project E&S

Entrepreneurship micro project

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ffop2007
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20 views2 pages

Micro Project E&S

Entrepreneurship micro project

Uploaded by

ffop2007
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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Micro, small and medium-sized enterprises (MSMEs) are vital contributors to the

Indian economy. As per the Ministry of Statistics and PI, the share of MSME in
India’s Gross Domestic Product (GDP) during the financial year (FY) 2019-20 was
30%. Furthermore, as per the Directorate General of Commercial Intelligence and
Statistics (DGCIS) data, MSMEs accounted for 49.5% of All India Exports during FY
2020-21.
Recognising the importance of MSMEs, the Indian government has come up with various
loan schemes and initiatives to support and nurture budding entrepreneurs. These
schemes aim to provide financial assistance at competitive interest rates, flexible
repayment terms, and minimal collateral requirements.

Government Schemes for Entrepreneurs Promotion

1. Credit Guarantee Scheme for Startups (CGSS)

The CGSS is one of the best government schemes for MSMEs. Under the scheme, Indian
startups can avail themselves of collateral-free loans. This scheme offers startups
a credit guarantee of up to ₹ 10 crores at a nominal fee of just 2% per annum. With
the funds received, startups can fulfil several aspirations, including business
expansion, buying new equipment, etc.
The Department for Promotion of Industry and Internal Trade (DPIIT) must recognise
your startup for you to avail funds under CGSS. Also, to get the required funds
under this scheme, your startup must have a stable revenue stream and shouldn't
default on any loans taken from any lending institution.

2. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a loan
scheme introduced by the Government of India in partnership with SIDBI (Small
Industries Development Bank of India). Through it, MSMEs can avail collateral-free
Business Loans from the government at a nominal guarantee fee only.

The scheme covers both Term Loans and Working Capital Loans up to ₹ 5 crores,
thereby reducing the risk for lenders and encouraging them to extend financial
support to MSMEs. The government provides a credit guarantee cover of up to 85% of
the sanctioned loan amount.
All eligible businesses in the manufacturing and services sectors can apply for the
CGTMSE scheme through a simple online application process.

3. Pradhan Mantri MUDRA Yojana

The Pradhan Mantri MUDRA Yojana (PMMY) is one of the best government schemes for
MSMEs in India. Launched in 2015, it aims to promote entrepreneurship among small
business owners by providing financial assistance of up to ₹ 10 lakhs in the form
of Working Capital Loans, Term Loans, and microfinance.
MUDRA loans are categorised into three categories:

Shishu loans of up to ₹ 50,000


Kishor loans ranging between ₹ 50,000 and ₹ 5 lakhs
Tarun loans ranging between ₹ 5 lakhs to ₹ 10 lakhs
MSMEs into in manufacturing, trading, and service activities can apply for MUDRA
loans without any collateral or security.

4. Prime Minister’s Employment Generation Program (PMEGP)

The Prime Minister’s Employment Generation Program (PMEGP) is a credit-linked


subsidy scheme under the Ministry of MSMEs. It aims to promote self-employment
opportunities by providing financial assistance for establishing new micro-
enterprises and generating employment in both rural and urban areas.

Under this scheme, eligible entrepreneurs can get Business Loans of up to ₹ 50


lakhs for establishing manufacturing projects and up to ₹ 20 lakhs for establishing
service-sector projects. The subsidy component may vary from 15% to 35%, depending
on the category and location of the project.

5. Stand-Up India Scheme

The Stand-Up India scheme is a flagship government initiative launched to promote


entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs) by
providing them access to financial support and handholding assistance. Under this
scheme, eligible borrowers can avail of loans ranging from ₹ 10 lakhs to ₹ 1 crore
to set up greenfield enterprises in manufacturing, trading, or service sectors.
Beneficiaries can avail of overdraft and cash credit facilities on Working Capital
Loans.

For Woman Entrepreneurs

Mahila Coir Yojana


Mahila Coir Yojana (MCY) intends to empower women by providing spinning equipment
at reduced prices following proper skill development training. Under this scheme,
women entrepreneurs can get a subsidy of up to 75% of the cost of equipment and
machinery for coir processing. The scheme also provides a margin money subsidy of
up to 25% of the project cost. The scheme is available to rural women artisan who
are above 18 years of age and has completed a training programme in coir yarn
spinning at any of the Coir Board's training institutes.

Udyam Shakti Portal


It was launched by the Ministry of MSME for promoting social entrepreneurship by
creating low-cost products and services. It offers assistance with business
planning, incubation facilities, training programs, mentorship, market research,
and more. Projects with a maximum cost of ₹25 lakhs are eligible for the scheme,
with ₹10 lakhs allocated specifically for service-based projects. The initiative's
online portal has played a significant role in empowering women beyond the confines
of their homes.

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