MSME Loan Schemes:

MSME – the abbreviation for Micro, Small, and Medium-Sized Enterprises. These sectors contribute to the overall financial stability of the country. Government of India initiatives are providing small and micro-industries with perks and incentives to run their business successfully.

Recent MSME Scheme Updates:

Prime Minister Narendra Modi introduces two new MSME initiatives.

1. ‘RAMP’ (Raising and Accelerating MSME Performance) would be implemented in collaboration with the World Bank and require a five-year investment of 6,000 crores.
   
2. “Capacity Building of First-Time MSME Exporters‘ (CBFTE) scheme would be introduced to deliver international-standard products and services to the global market through export capacity building.

MSME Programs for Entrepreneurs and Startups:

The majority of MSMEs are operated by people who lack the required facilities, resources, infrastructures, and marketing relationships to market their products, resulting in their closure. The right support and advantages might help them carve out a place in a competitive market.

Thus, to encourage more persons to pursue entrepreneurial endeavours and to help them maintain a stable market position, the government of India has launched several MSME Schemes for new entrepreneurs that cover a variety of business sectors. Additionally, these initiatives contribute to increased productivity, the development of a competitive spirit among MSMEs, and the assistance of innovators.

These programs are designed to help MSMEs meet their requirements and improve their performance through incentives and rewards, empowerment of women’s activities, quality control at the source, credit provision, government subsidy plans, and much more.

MSME Schemes in India: (A) Credit Support Schemes

 With the rate of literacy rising year after year, unemployment difficulties are also rising. This program’s goal is to eliminate unemployment and encourage new business growth by giving financial assistance

1. PMEGP Scheme – Prime Minister Employment Generation Programme

PMEGP is a Government of India-sponsored credit-linked subsidy scheme that began in 2008. PMEGP is the result of the consolidation of two schemes, namely the Prime Minister’s Rojgar Yojna and the Rural Employment Generation Programme. This program aims to create self-employment opportunities for unemployed youth and traditional craftspeople through micro-enterprise enterprises in the non-farm sector.

The PMEGP Scheme is administered at the national level by the Khadi and Village Industries Commission (KVIC).

Objectives –

• Creation of long-term self-employment prospects in the country’s urban and rural locations
• Facilitating the engagement of financial institutions to increase credit flow to the microservices industry

Eligibility –

• Individuals who are at least 18 years old
• Std VIII compliance is required for projects costing more than Rs 5 lakh in the service sector and more than Rs 10 lakh in the production sector.
• Institutions that have been registered under the SRA – Societies Registration Act of 1860
• Cooperative societies based on production
• Self-help organizations and charitable foundations

PMEGP E-Portal Application –

To begin, navigate to my.msme.gov.in or kviconline.gov.in. To access the “Prime Minister Employment Generation Programme” or “PMEGP ePortal,” click the link.

2. CGTMSE Scheme – Credit Guarantee Trust Fund for Micro & Small Enterprises 

In India, MSME started CGTMSE on 30/8/2000. Under this scheme, MSMEs may be granted a loan of up to 200 lakh rupees. Women entrepreneurs that participate in this MSME loan scheme receive special attention.

Objectives –

The trust’s principal purpose is to provide financial support to MSMEs without requiring any third-party guarantee.

Eligibility –

• Both existing and new businesses can participate but they must be small or individual micro-companies are eligible.

The Application Procedure –

• The 1st and most important step in pursuing this MSME scheme is creating a comprehensive business plan that includes all financial information.
• Once the company strategy is complete, a critical selection on the lender bank to approach must be made. After making a decision, submit the application and business plan to the bank.
• When permission is granted, the business is responsible for paying the CGTMSE guarantee and service fee to the borrowers.

MSME Schemes in India: (B) Khadi, Village, and Coir Industries Development

The Ministry of MSME has created many initiatives to make way for rural crafts and goods to participate in the economic development of the country and raise the rural population.

1. MPDA Scheme – Marketing Promotion and Development Assistance

It promotes the khadi industry’s MSME sector. Additionally, the Marketing Development Assistance (MDA) program has undergone several alignments to build the scheme. MPDA will cover 30% of the prices of Khadi and Polyvastra.

Objectives –

• To help Khadi businesses sell their products.
• Financial assistance and timely disbursement of funds to Khadi units.
• Allow market segmentation for Khadi and Village items.
• Promote awareness activities, exhibitions, skills training, and workshops.
• Increase product demand.

Eligibility –

Any Khadi industry that holds a valid Khadi certificate issued by KVIC is eligible to participate in the MSME scheme. They must, however, fall within one of the A+, A, B, or C categories.

The Application Procedure –

The manufacturing institution may claim the entire amount from the KVIC, which should be allocated to stakeholders.

2. CVY Scheme – Coir Vikas Yojana

It focuses completely on the improvement of the MSME sector. As a result, it promotes the exploration of domestic and foreign export markets. Furthermore, there is a strong emphasis on women’s empowerment, entrepreneurs, skills and training, innovation, and production. Furthermore, this is a continuation of the Mahila Coir Yojana (MCY).

Objectives –

• At the grassroots level, the primary emphasis is on quality.
• Encourage the adoption of appropriate procedures for the production of high-quality fiber, yarn, and other products.
• Raising awareness among peer
• Establishing coir service units to increase productivity and quality

Eligibility –

• Any newly established coir processing unit
• Any coir processing unit certified with the Coir Board under the Coir Industry (Registration) Rules, 2008, and possessing a Udyog Aadhar number is eligible to apply for upgrading.

The Application Procedure –

You can apply online with all appropriate documentation.

MSME Schemes in India: (C) Technology advancement and quality certification

Quality and constant improvement are critical components of every business’s growth. While there should be an appropriate quality certification channel to provide reliable results, technological advancements should be made. Some initiatives are therefore formed to pave the way for technology and upgrade.

1. ASPIRE Scheme – A Scheme To Promote Innovation, Rural Industry, And Entrepreneurship

It builds incubation centers, thereby establishing a technology network. Additionally, the scheme received a total of Rs 62.50 crore in 2014-16. It gives a one-time grant of 100% of the cost of plant and machinery, infrastructure, and land. But the aid is limited to Rs 100 lakhs.

Objectives –

The motto of ASPIRE is to promote innovation in the MSME sector, in particular, fostering new businesses for unmet societal needs and providing jobs for new people.

Eligibility –

• Institutes of technology/research can act as knowledge partners in the commercialization process.
• Incubation schemes of MSME/KVIC/Coir Board/other Departments and also Private incubators.

The Application Procedure –

You may submit your application to the Ministry of MSME’s Aspire Scheme Steering Committee.

MSME Schemes in India: (D) Promotional Marketing Schemes

The Ministry of MSME has launched a few initiatives to improve marketing tactics for the benefit of MSME.

1. P&MS Scheme – Procurement and Marketing Support Scheme

This scheme aims to promote MSMEs about business growth opportunities, trade shows, and cutting-edge market tactics.

Objectives –

• Creating new market opportunities through exhibitions and fairs
• Promoting modern technology and equipment
• Emphasizing the critical role of e-portals in the SME sector

Eligibility –

MSEs operating on an individual basis in the manufacturing and service sector

The Application Procedure –

Your application can be submitted online.

Some of the popular MSME schemes 2020 implemented by the government of India 

• Udyog Aadhaar memorandum
• Zero Defect Zero Effect
• Quality Management Standards (QMS) & Quality technology Tools
• Grievance Monitoring System (GMS)
• Credit Linked Capital Subsidy Scheme (CLCSS)
• Women Entrepreneurship

MSME Registration:

The government has introduced several innovative MSME schemes 2020 and support systems to assist these businesses. Registering your company with MSME is the initial step for people who want to benefit from the above-mentioned MSME schemes. This can be accomplished both online and offline.