Unsecured Business Loans By Government
MSME loans are a valuable financial tool for small and medium-sized businesses (SMEs) looking to grow. These loans are specifically designed to provide funding for working capital, purchase of machinery and equipment, and for the expansion of existing businesses. Additionally, MSME loans provide a range of benefits, including competitive interest rates, flexible repayment plans, and longer repayment terms. Furthermore, these loans offer quick and easy access to capital, allowing SMEs to expand operations and take advantage of new opportunities. Ultimately, MSME loans are an integral part of successful business growth and expansion, providing SMEs with the capacity to invest in their future.
2.Pradhan Mantri Mudra Yojana (PMMY)
Pradhan Mantri Mudra Yojana (PMMY) is a scheme launched by the Government of India to provide financial assistance to small and medium businesses. This scheme aims to provide easy access to credit for entrepreneurs without collateral. It enables people to start and expand their business without having to worry about the cost of setting up a business. The scheme offers loan amounts ranging from Rs. 50,000 to Rs. 10 lakhs with a repayment period of up to 5 years. Furthermore, the scheme also offers additional benefits such as low interest rates, easy eligibility criteria and flexible repayment options. In this way, PMMY helps to promote entrepreneurship, employment generation and financial inclusion.
3.Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGFMSE)
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGFMSE) is a Government of India initiative to support the financial inclusion of micro and small enterprises by providing them access to formal sources of credit. The scheme provides a guarantee cover of up to ₹ 2 crores for collateral-free loans to these enterprises, thereby reducing their borrowing costs and enabling them to scale up their businesses. Furthermore, the scheme also provides credit enhancement services, such as credit monitoring and counselling, to ensure the sustainability of the enterprises. In sum, the CGFMSE has been designed to not only enhance access to formal sources of credit but also to promote financial inclusion and the sustainable growth of micro and small enterprises.
4.National Small Industries Corporation (NSIC)
The National Small Industries Corporation (NSIC) is an organization dedicated to promoting, developing and supporting small-scale industries in India. It provides marketing, technical and financial assistance to small and medium enterprises, helps them acquire technology and modernize, and provides them with access to global markets. It also helps entrepreneurs set up their businesses, provides information on legal and regulatory requirements, and assists in setting up industrial estates. Through its schemes, it has enabled many small and medium enterprises to become self-sufficient and create employment opportunities. NSIC is thus playing a significant role in the overall economic development of the nation.
5.Credit Linked Capital Subsidy Scheme (CLCSS)
The Credit Linked Capital Subsidy Scheme (CLCSS) is an initiative of the Indian Government to promote entrepreneurship and technology upgradation in small scale industries. The scheme provides capital subsidy to eligible small scale units to enable them to upgrade and modernize their technology. The scheme is aimed at helping small scale industries become globally competitive and reduce their cost of production. The scheme provides capital subsidies on a range of activities, including, purchase of plant and machinery, working capital investment, technology upgradation and purchase of raw materials. Furthermore, the scheme also provides soft loans to eligible units to facilitate the purchase of capital goods and modernize their technology. Consequently, the scheme helps small scale industries to become more competitive, thereby contributing to the growth of the Indian economy.