Government Loan Schemes For Small Scale Businesses

1. Government Loan Schemes For Small Scale Businesses THE CREDIT GUARANTEE FUND SCHEME FOR MICRO AND SMALL ENTERPRISES It is launched by the Government of India to provide collateral free finance to the micro and small enterprise sector. The Amount is contributed by Government and SIDBI is 4:1 in ratio. It also provides credit facilities in the form of term loans and working capital facility of up to Rs.100lakh per borrowing unit. Rehabilitation assistance is also made available to sick units. CREDIT LINK CAPITAL SUBSIDY SCHEME FOR TECHNOLOGY UPGRADATION Its main intention is to create an impact in the international trade. It is launched to facilitate technology up gradations by extending an upfront capital subsidy of 15% (max INR 15lakhs). The corresponding plant and machinery is important It is available to machinery to Sole Proprietorship, Partnership firms, Cooperative, Private and Public Limited Companies. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA SIDBI is one of the most illustrious names among the government financial institutions. It played an active role in the promotion and development of the small business industry. Schemes provided by SIDBI Direct Assistance Scheme Indirect Assistance Scheme Promotional and Development Activities National Equity Fund, scheme Technology Development and Modernization Fund scheme Single window scheme Mahila Udyami Nidhi (MUN) Scheme and Equipment Finance Scheme

2. NATIONAL SMALL INDUSTRIES CORPORATION LIMITED (NSIC) The main feature is to import machines on hire-purchase terms. It promotes awareness about advancements in the small scale industries sector of the country. It highlight on supply and distribution of both indigenous and imported raw materials as well as exporting the products of the small business units. NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT NABARD mainly came into existence to promote agriculture based rural business enterprises. It mostly offers financial assistance to small scale industries viz,. Cottage and village industry. MARKET DEVELOPMENT ASSISTANCE SCHEME FOR MSMEs It offers funding for participation in international trade fairs and exhibitions under MSME India stall. It also offers financing for sector specific market studies by industry association, export promotion councils and FIEO. This scheme offers reimbursement of 75% of a one-time registration fee and 75% of annual fees paid to GSI by SMEs for the first 3 years for the bar code. TECHNOLOGY AND QUALITY UPGRADATION SUPPORT TO MSMEs It aims to improve the production quality of MSMEs to encourage them to adopt global manufacturing standards. The main aim of this scheme is to sensitize the manufacturing MSME sector to make use of energy sufficient technologies And also the manufacturing processes to reduce manufacturing cost and emissions of harmful gasses that can hamper the environment The Indian government provides financial support to the extent of 75% of the actual expenditure to assist manufacturing sector purchase energy efficient technologies for production. MINI TOOLS ROOM AND TRAINING CENTRE SCHEME The mission of this scheme is to develop more tool room facilities to provide technological support to the MSMEs The training in tool manufacturing and tool design to create a skilled workforce of workers, supervisors, engineers/designers. 90% of the cost of machinery/equipment in case a new Mini tool room is to be created. In case an existing room to be upgraded – 75% of the cost is funded. MUDRA LOAN (Micro Units Development and Refinance Agency Ltd.) The vision of Funding the Unfunded.

3. It is established by Government of India for development and refinancing activities relating to micro units. It provides low cost funding for MFI (Micro Finance Institutes) It also supporting to the institutions , societies, trusts section 8 companies, co- operative societies, small Banks, Scheduled commercial Banks and Rural Banks which are in the business of lending to micro or small business etc. For More Information Please visit our website: efilingportal