Now a day’s most of the people who are doing 9 to 6 jobs have a desire to start their own business. Some to them start their business and get success on it. Most of the people will not start due to lack of fund & information.
Small Business enterprise are playing very important role in growth of any country. In India small business Industry contain the 40% of market share in total Industrial output & around 35% of market share in export. This market share stated the importance of small business in GDP.I will try to explain about the MSME, Investment thresholds & governments scheme.
Enterprises have two sectors first is Manufacturing Sector & Services Sector. On the basis of Investment threshold limit we can define which is industry is Micro, Small & Medium.
|Manufacturing Sector||Does not exceed twenty five lakh rupees.||More than twenty five lakh rupees but does not exceed five crore rupee||More than five crore rupees but does not exceed ten crore rupees|
|Service Sector||Does not exceed ten lakh rupees.||More than ten lakh rupees but does not exceed two crore rupees||More than two crore rupees but does not exceed five crore rupees|
Below i will explain the top 5 government scheme to encourage the investment:
- Business Loan in 59 Minutes
- MUDRA Loans
- Credit Guarantee Fund Scheme for Micro and Small Enterprises
- National small Industries corporation subsidy
- Credit Link Capital Subsidy Scheme for Technology Upgradation
1. Business Loan in 59 Minutes: This scheme was first announced in September 2018. . Under this scheme, the actual process takes 8-12 days to complete but Approval & disapproval of any loan up to 1 Cr. is granted in 59 Minutes. This scheme provides the financial assistance to new and existing small enterprises. It is a refinancing scheme, wherein five authorized public sector banks will grant the funds. The interest rate depends on the nature of your business and credit rating.
For apply for business loan under this scheme, you need GST verifications, Income Tax verifications, bank account statements for the last 6-months, ownership related documentation, and KYC details.
2. MUDRA Loans: Micro-units Development and Refinance Agency (MUDRA) is an organization established by the government of India to provide business finance to micro-business units. Small companies often left their own device for financing their ventures. The government has created the concept of low-cost credit to such undertakings. MUDRA Loans are disbursed through public sector banks, private sector banks, co-operative societies, small banks, scheduled commercial banks and rural banks that come under the scheme.
3. Credit Guarantee Fund Scheme for Micro and Small Enterprises: This scheme launched in 2000 for assist micro & small enterprise. It offers collateral-free credit for both new and existing business units that satisfy its eligibility criteria. The scheme provides working capital loans up to ₹ 10 lakhs without any collateral.
For all credit facilities above ₹ 10 lakhs and up to ₹ 1 crore only primary securities or mortgage of land and building associated with the building is obtained and such eligible accounts are covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
4. National Small Industries Corporation Subsidy: This scheme provide to type of benefit. Raw Material Assistance & Marketing Assistance. Raw Material Assistance Scheme main focus is helping MSMEs for financing the purchase of Raw Material (Both indigenous & imported). This gives an opportunity to MSMEs to focus better on manufacturing quality products.
Under the marketing support, funds are given to SMEs for enhancing their competitiveness and the market value of their products and services.
5. Credit Link Capital Subsidy Scheme for Technology Upgradation: This scheme allows to MSME to upgrade their process by financing technological up gradation. The technology up gradation may relate to tiny, khadi, village and coir industrial units etc. MSME can get the 15 per cent upfront capital subsidy up to a maximum cap of ₹ 15.00 lakhs.