Small businesses are offered government loans that can elevate their positions. Here is a comprehensive look at a few:
The state provides opportunities for small businesses in the form of loans. These loans are generally seen as a transitional tools that will secure your long term sustenance goals through immediate fund generation. The government provides these funds in the hopes that, long term capital creation will lead to profitable firms that can effectively contribute to the economy. This is a cycle that any healthy society hopes to establish with its own domestic economy for sustainable development. Here a few government sponsored loans that could help you business move forward:
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS)
The CGS scheme offers Small and Medium enterprises a lifeline in the form of a collateral free loan. Offered by the Small Industries Development Bank of India (SIDBI), this loan scheme offers up to a 100 lakh for an eligible business. CGS also offers a guarantee cover for the loans it has dispatched for a time frame of 5 years. Established since August 30 2000, this scheme is very important for the prosperity of small and emerging businesses to looking to make it big in the economy.
Pradhan Mantri Mudra Yojana
In the year 2016-17 alone, this scheme pumped out 1.53 trillion into small enterprises that were looking for credit. MUDRA which stands for Micro Units Development and Refinance Agency is a government organization that helps in financing small and medium enterprises. This loan which has a very high financing rate is one of the most important success stories the government has managed to give out.
Credit Linked Capital Subsidy Scheme (CLCSS)
Offered by the Ministry of Small Scale Industries (SSI), this scheme helps small time entrepreneurs decrease the price of manufacturing and lessens the burden as far as technological upgradation is concerned. This is because SSI manages to provide a 15 per cent upfront subsidy for the purpose of technology upgradation. The maximum amount that can be availed through the scheme is around 15 lakhs. SSI schemes are deemed to be a success because they have given out 215 crores to aspiring entrepreneurs.
Market Development Assistance Scheme for MSMEs
This is a very important project put forward by the government of India. The ultimate aim of the project itself is to get Indian entrepreneurs upto speed about the international markets and the overarching trends that drive them forward. Market development assistance scheme wants to be complicit in putting Indian entrepreneurship and business acumen in the forefront on a global scale. Loans that cover 75 percent of the actual expenditure for the purchase of energy efficient hardware is supported by this scheme.
Stand Up India Scheme
The Stand Up India Scheme started in 2015 by the government of India offers financial assistance for individuals from backward castes and tribes. The funds are earmarked for those who seek to start a new business or micro enterprise. The amount that can be awarded to the prospective entrepreneur will be between 10 lakhs and 1 crore. This scheme also offers a repayment period of upto 7 years. The Stand Up India scheme is a critical vehicle of empowerment for many in the country.
A lot of schemes are in offer from the government that can encourage an entrepreneur to move forward and create whole industries for himself. The Indian government should be lauded for providing comprehensive platforms such as these from which an individual can safely take a plunge at entrepreneurship. This is an excellent step that will help move the nation forward.