Did you know that the Government of India aims to boost Micro, Small and Medium Enterprises (MSMEs) contribution to the country’s GDP from 29% to an astounding 50% by 2024? Yes, and this development expects to increase the number of job opportunities from 11 crores to 15 crores Indians.
To continuously nurture MSMEs and a rapidly expanding start-up culture and ensure that innovation is encouraged, the Indian government has launched some unique business schemes in 2021 and over the years. These employment and business-related plans are meant to tackle poverty, unemployment, and income inequality countrywide. Read further to find out some promising government business schemes 2021 that you must consider.
1. Credit Linked Capital Subsidy Scheme
CLSS is a government loan scheme launched by the Ministry of MSMEs to fund both new and old enterprises. It allows collateral-free or unsecured credit to the MSME sector and promotes small-scale businesses in rural and semi-urban areas. What’s more, it provides a subsidy of 15% on investment machinery, plant or equipment. This will allow small and medium industries to have technological upgrades that are necessary for their growth.
2. MUDRA Loan
The Pradhan Mantri MUDRA Yojana (PMMY) has been designed to aid the non-corporate small enterprises in the country. MUDRA stands for Micro Units Development and Refinance Agency as it provides loans up to Rs 10 lakhs under the PMMY. It offers financial support for small manufacturing units, shopkeepers, vendors, machine operators, food service units, and more.
You can avail of a MUDRA loan from public and private sector banks, corporate banks, regional and rural banks, and small finance banks. You can also visit the official website of MUDRA to apply for the loan online.
3. MSME Loan in 59 Minutes
Under this government scheme, you can get a quick MSME business loan to expand and grow your existing enterprise. This scheme provides loans starting from Rs 1 lakh to Rs 5 crores in 59 minutes at an interest rate of 8.50%. To avail of this loan, you must provide your previous credit history and proof of your repayment capacity and your company’s revenue. This MSME loan provides borrowers with super quick processing and disbursal upon minimal documentation.
Additional Read: Best Way to Get an MSME Business Loan
4. National Small Industries Corporation
NSIC is another brilliant scheme launched to assist the growth of MSMEs by the Indian government. The enterprise has been certified by ISO and provides support services around marketing, finance, technology, etc., across the country. The NSIC scheme is further divided into marketing support and credit support, including finance for various activities as per your requirement.
Additional Read: How to Get a Small Business Loan from the Government
Looking for the right financing option to expand your small enterprise? Secure MSME business finance with Tata Capital and receive competitive business loan interest rates. Let your business scale new heights with our special features, including quick approvals, minimum documentation, and multi-product offering.
Visit our website to check your MSME business loan eligibility and avail of our online application services. Fund your long-term business requirements and maintain a healthy cash flow with Tata Capital’s MSME loans. Get your funds disbursed in a flash!