The MSMEs (Ministry of Micro, Small and Medium Enterprises) which is the apex executive body, formulates and administers rules, regulations and laws relating to micro, small and medium enterprises in India. In fact, they are recognized globally as the drivers of economic growth and promoters of equitable development. Not only this, in most economies they account for more than 90 per cent of all businesses and are also credited with the greatest employment growth.
Now, you might have heard about a lot of schemes provided by the government to various sectors for their welfare. But, do you know about schemes that are important for the MSMEs? Well, in this article, we are going to talk about 8 such important schemes provided for the MSMEs.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) –
The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. It gives a guarantee cover of up to 75% of the credit facility up to Rs.50 lakh (85% for loans up to Rs. 5 lakh provided to micro enterprises, 80% for MSEs owned/ operated by women and all loans to NER) with a uniform guarantee at 50% of the credit exposure above Rs.50 lakh and up to Rs.100 lakh.
Prime Minister’s Employment Generation Programme (PMEGP) –
The objective of this scheme is to generate continuous and sustainable employment opportunities in Rural and Urban areas of the country, to provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises and to facilitate participation of financial institutions for higher credit flow to micro sector. It provides credits upto Rs 50 Lakh for launch of new manufacturing unit and Rs 20 Lakh to new service units.
Raising and Accelerating MSME Performance” (RAMP) scheme –
RAMP is a World Bank assisted Central Sector Scheme, which supports various CoronaVirus Disease 2019 (Covid) Resilience and Recovery Interventions of the Ministry of Micro, Small and Medium Enterprises (MoMSME). It aims at Improving access to market and credit, strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships and addressing issues of delayed payments and greening of MSMEs.
Pradhan Mantri MUDRA Yojana (PMMY) –
On April 8 2015, the Hon’ble Prime Minister launched the Pradhan Mantri MUDRA Yojana (PMMY) is a scheme to provide loans up to Rs 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.
Stand Up India Scheme –
The Stand Up India Scheme was launched by Prime Minister Narendra Modi on 15th August, 2015. This scheme seeks to leverage the institutional credit structure for reaching out to the Scheduled Caste, Scheduled Tribe and Women entrepreneurs to enable them to participate in the nation’s economic growth. The objective of the scheme is to facilitate bank loans between Rs 10 lakh to Rs 100 lakh to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one Woman borrower per bank branch of all scheduled commercial banks for setting up a greenfield enterprise.
PSB Loans in 59 Minutes –
PSBloansin59minutes.com is an online marketplace that enables MSMEs and self-employed professionals to apply for business loans and Mudra loan at an interest rate of 8.50% p.a. onwards. Under this scheme, individuals and enterprises can get loan approval from Rs. 10 Lakh to Rs. 5 Crore under 59 minutes from Public and Private Sector Banks (PSBs), NBFCs, etc.
Trade Receivables Discounting System (TReDS)
TReDS is an online platform designed for facilitating the MSMEs to unlock working capital by conversion of their receivables into cash. TReDS gives capital access to the credit-starved small businesses in India.
Self Reliant India (SRI) Fund
The Self Reliant India (SRI) Fund was created on 13th May 2020, by the Prime Minister and Finance Minister of India. It was created for addressing severe shortage being faced by MSMEs in securing growth capital. The objectives of this scheme are to enhance equity/equity like financing to MSMEs, support faster growth of MSME Businesses and thereby igniting the economy and creating employment opportunities; to supporte enterprises which have the potential for graduating beyond the MSME bracket and become National/ International Champions and to support MSMEs which help to make India self-reliant by producing relevant technologies, goods and services.
