Government Start-up Schemes In India

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In India, the SME sector contributes over 40% of total GDP and remains a major source of employment for most of the population. The current COVID pandemic has already crippled our economy, where millions of people are hungry for food. As a measure to put the economy on the right track, the government has placed continued local emphasis on whatever product you buy. This will increase demand and the supply chain, helping millions of people find jobs in local industries.

Pradhan Mantri Mudra Yojana (PMMY)

This is one of the main initiatives taken by the government to support small entrepreneurs. MUDRA Yojana offers business loan options to meet the financial needs of different businesses in different industries. The loan amount that can be used under this program is ₹ Lakh 10 without any collateral. However, MUDRA is a refinancing institution, which means that it finances a loan by taking out a loan from someone else.

The MUDRA loan can be used in three categories which are decided based on the need and the equity of the business.

Shishu: Loans: up to ₹ 50,000

Kishor: Loans: From ₹ 50,000 and up to 5 lakh

Tarun: Loans: From ₹ 5 lakh and up to ₹ 10 lakh

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Credit Guarantee Fund scheme for micro and small enterprises (CGS)

This is another government unsecured business loan program that aims to support small and medium businesses across the country. The maximum loan that one can avail under this program is ₹ 2 crore. However, the amount approved is entirely dependent on your business potential and track record.

Both existing and new businesses are eligible for funding under this scheme.

 The Micro and Small Enterprise Credit Guarantee Fund Scheme (CGMSE) was initiated by the government with the collaboration of the Indian Micro, Small and Medium Enterprises and Small Industries Development Bank (SIDBI). The Indian government and SIDBI have formed a trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the program.

National Small Business Grant Program

National Society of Small Industries (NSIC)

This was formulated by the Ministry of MSMEs under the Government of India in consultation with various stakeholders, namely the Small Industry Associations and the Association of Indian Banks.

Registered MSMEs can apply under this program. According to the revised rules, a business or company with a turnover of Cr ₹ 1 or more is eligible for assistance under this program. The National Small Industries Corporation (NSIC) grant provides three types of financial benefits, including marketing assistance, technology upgrading, and raw material assistance.

Loan in India for entrepreneurs

This program aimed to advance the Indian government's Make in India campaign and help micro, small and medium-sized enterprises participate in the campaign by taking out a loan from a Small Industry Development Bank of India. The objective of this loan is to enable the borrower to meet the debt ratio of any business. The main objective of this program is to increase small and medium enterprises in the country so that more products can be made in India using local resources.


 

New businesses in the manufacturing sector as well as in the service sector can benefit from loans under this scheme. Existing companies that undertake expansion, modernization, technology upgrades and the like can also enjoy the benefits to grow and expand their production and services. The interest rate charged for borrowing under this scheme is very low.

Start-up India

Start-Up India is the initiative taken by the Indian government in particular to encourage entrepreneurs in the country. As part of this program, the government has placed importance on the skills and knowledge that help to start a business. The program offers free learning to those who are ready to start their own businesses. This is a great government initiative because just providing money cannot always be successful. They can be registered for these courses at https://www.startupindia.gov.in/ where t

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