Did you know that the small-scale business sector contributes about 40% to the country’s total GDP? While the MSME sector is the backbone of the country’s economy, it faces extreme competition from established private businesses.
Keeping this in mind, the Government of India offers various business loan schemes, financial policies, and tax relaxations to help these small businesses grow. Similarly, the union budget also aims to aid many emerging entrepreneurs.
On that note, let’s check out the various measures by the government to help small businesses.
During the covid-19 pandemic, many small businesses faced a serious financial crisis. That is why, in a move to encourage start-ups countrywide, the government is offering tax benefits to eligible businesses for three consecutive years out of 10 years from its incorporation.
Additionally, in the union budget 2022, the government announced a tax concession of 15% to recently established manufacturing units in the country. This will help these MSMEs grow and compete in the global business market.
Additional Read: Business Funding Options Which Can Take Your Business to the Next Level in 2022
Government business loans
To finance the small business sector, the government offers a range of affordable loans to business owners. With an easy online application process and swift disbursal, you can seek financial help hassle-free. Whether you want to expand operations, introduce a new line of products, or acquire working capital, an SME loancan help.
For instance, the Credit Guarantee Scheme for Micro and Small Enterprises (CGSMSE) offers collateral-free credit in the form of term loans and working capital loans. Here, you can avail of a guarantee covering up to 85% of the sanctioned amount.
As mentioned above, the government small business help loan schemes offer great benefits to new and existing business owners. That is why the centre extended the Emergency Credit Line Guarantee Scheme till 2023 to help MSMEs revive their business after the pandemic.
Moreover, this year, the government also introduced a new program, ‘Raising and Accelerating MSME Performance’ (RAMP), with funding of Rs. 6000 crores over five years to encourage the growth and involvement of MSMEs in the global business market.
Additional Read: Creative Ways of How to Raise Funds for Small Business
Digitalisation has changed the face of the economy, and it is no different for the country’s small businesses. Here, the government is working to ensure that 90% of enterprises are ‘digitally influenced’. This means easier access to PCs, smartphones, and the internet to all the small businesses countrywide.
Furthermore, there is also increased focus on digital banking, payments, and easy availability of credit online to improve the financial health of businesses.
The bottom line
With such great initiatives by the government, you can take your small business to the next level! And if you are looking for a reliable finance partner, turn to Tata Capital! Our wide range of tailored business offerings will provide you with funds to expand your business.
Enjoy affordable interest rates, flexible loan repayment options, and simple eligibility criteria with a quick application process. Plan your monthly payments using our business loan EMI calculator and get started today!