Looking To Fund Your Small Business? Check Out These Top 5 Loan Schemes News24 –

Small-scale industries are an essential part of the economy and contribute significantly to the Indian economy. They provide employment, foster innovation, and promote regional economic development. These businesses primarily cater to local and regional markets. Small industries generally require less capital investment as compared to large industries. However, they also face stiff competition from big companies, which can make it difficult for them to access funding.

The positive aspect is that the Indian government offers several loan schemes to help finance small businesses. These loans can be availed by SMEs to fund and grow their businesses.

So if you are also planning to start or expand small scale business, here are the loan options you can consider.

Credit Guarantee Scheme For Micro And Small Enterprises (CGSMSE)

This scheme provides collateral free loan up to a limit of Rs. 500 lakh to MSEs.

It also provides guarantee coverage cover up to 85 % for various categories of loan through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Prime Minister’s Employment Generation Programme (PMEGP)

PMEGP is a key scheme that provides financial support to create self-employment opportunities. It helps set up small businesses in the non-farm sector, supporting artisans and unemployed youth in both rural and urban areas.

A loan of upto Rs. 50 lakh for manufacturing sector and Rs. 20 lakh for service sector is provided under the scheme.

Pradhan Mantri Mudra Yojana (PMMY)

It extends collateral free credit upto Rs. 10 lakh by Member Lending Institutions.

Any individual who is otherwise eligible to take a loan and has a business plan for small business enterprise can avail loan under this Scheme.

There are three loan categories, under this scheme. These are Shishu (loans up to Rs. 50,000/-), Kishore (loans above Rs. 50,000/- and up to Rs. 5 lakh) and Tarun (loans above Rs. 5 lakh and up to Rs. 10 lakh).

Stand-Up India (SUI) Scheme

This scheme was launched to provide funds to Scheduled Caste (SC), Scheduled Tribe (ST), and women entrepreneurs.

This scheme facilitate loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs. 1 crore, to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one Women borrower per bank branch.

SIDBI Make In India Loan For Enterprises (SMILE)

This scheme offers soft loans and term loans.

It provides loan of minimum Rs 10 lakh for equipment and Rs 25 lakh for others.

The best thing about this thing is that its repayment period is longer, Up to 10 years with a 3-year moratorium.

PM Vishwakarma Scheme

This scheme provides end-to-end support to artisans and craftspeople including credit support at 5% interest rate along with guarantee coverage.

Note: You are advised to check official site for in-depth and detailed information .