The economic growth of a country depends heavily on the MSMEs  (Micro, Small and Medium Enterprises)  present in the country. According to the MSME Report 2021, there are approximately 6.3 SME’s (Small and Medium Enterprises) in the country. The Ministry of MSME (Mirco, Small and Medium Enterprises) contributes to over 8% of the overall GDP of the country both through its national and international trade. The MSME’s also contribute to over 40% of the country’s total exports and 45% of the country’s manufacturing output. 

The Micro Small and Medium Enterprises (MSMEs) sector is considered to be the engine of  India’s economic growth. The SMEs (Small and Medium Enterprises) always provide a remedial solution to the significant problems in the economy such as unemployment, inequality in income, poverty, regional imbalances and many more. The Ministry of MSME (Medium, Small and Micro Enterprises) is also responsible for providing employment opportunities to millions of people in the country.  Thereby making MSME a centrifugal force in contribution to the GDP of the country. 

However, one must understand that the MSMEs are a part of the organised and the unorganised sector of India. Just like how every other business is faced with hurdles during its growth stage,  the MSMEs in India also have several hurdles that need to be overcome to run their operations in a smooth and efficient manner. The MSME sector in India has contributed greatly to the increase in the entrepreneurial spirit and development of entrepreneurs in semi-urban and rural areas. 

The Government of India, under the Ministry of MSME (Mirco, Small and Medium Enterprises) has created several schemes for 2021 which are aimed to provide financial assistance to every MSME in the country and ensure that every budding entrepreneur is able to expand and carry out their business with ease. Let’s take a look at the SME Schemes 2021 that are laid down by the Government of India. 

Prime Minister Employment Generation Programme (PMEGP) 

The Prime Minister Employment Generation Programme (PMEGP) is an SME scheme 2021 that is implemented under the Khadi and Village Industries as the nodal agency on the national front. However, under the state level, this scheme is implemented through a couple of entities namely; State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The scheme aims to provide financial assistance to self-employed businesses in order to generate employment opportunities for several unemployed youths and other traditional artisans in the country. This MSME loan scheme 2021 in particular increases the credibility of their business and helps budding entrepreneurs to get credit from banks at liberal interest rates. 

Eligibility Criteria  for Prime Minister Employment Generation Programme (PMEGP)

The PMEGP, SME scheme 2021 applies to every individual over the age of 18 years. Institutions that are registered as societies, self-help groups, charitable trusts and production co-operative societies are also other beneficiaries of this scheme. 

Nature of Assistance for PMEGP

The admissible limit for this SME Scheme 2021, is Rs. 25 lakhs for MSME’s under the manufacturing sector and Rs. 10 lakhs for the service (business) sector. 

How To Apply for PMEGP

To apply for the PMEGP, MSME Scheme you can simply visit the KVIC Portal and submit your application with the required documents. 

Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)

The Credit Guarantee Scheme for Micro & Small Enterprises is an SME scheme in 2021, launched by the Government of India under the trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. This SME scheme 2021 aims to motivate all first-generation entrepreneurs towards self-employment by providing their credit through collateral-free loans. This MSME loan scheme 2021 is built solely on the premise of providing third-party guarantee-free, i.e. collateral-free loans. 

Eligibility Criteria for CGTMSE

The CGTMSE, SME scheme 2021 applies to all current entrepreneurs and all those aspiring entrepreneurs. 

Nature of Assistance for CGTMSE

Under this MSME loan scheme, an eligible entrepreneur can receive upto 200 lakhs of credit without any collateral or third-party guarantee, this includes fund as well as non-fund based coverage. The guarantee extends upto 85% for Micro Enterprises and 50% for retail trade activity for a credit limit of 5 lakhs for micro enterprises and 10 lakh to 100 lakhs for retail trade activities. 

How To Apply for CGTMSE

To apply for the CGTMSE, SME Scheme you can simply visit the Udaan Portal or apply through any member lending institution. 

Micro & Small Enterprises Cluster Development Programme (MSE– CDP)

The Micro and Small Enterprises Cluster Development Programme (MSE-CDP) is an SME Scheme 2021 that aims to grow MSMEs by addressing and enhancements in sustainable and green manufacturing technologies, accessibility to markets, skills and quality. The SME scheme 2021 also aims to create and upgrade infrastructure facilities for all existing SME clusters and Industrial areas. This SME scheme 2021, also promotes green and sustainable manufacturing technology for clusters. This MSME scheme 2021, will create a common ground for industrial clusters by offering plug and play facilities and supporting flatted factory complexes.  

Eligibility Criteria for MSE– CDP

The MSE-CDP, SME scheme 2021 applies to existing entrepreneurs in the form of SPV (Special Purpose Vehicle).  

Nature of Assistance for MSE– CDP

Under this MSME loan scheme, the CFCs can get government assistance upto 90% for a project of upto 20 crores. However, with respect to infrastructure development, you can get assistance upto 80% for a project of 15 crores. 

How To Apply for MSE– CDP

To apply for the MSE-CDP, SME Scheme 2021 you can simply visit the Cluster Development Program Portal and apply online and submit the hard copy of your application at any field institutes under the Ministry of MSME. 

Credit Linked Capital Subsidy Component (CLCS & TU Scheme)

The Credit Linked Capital Subsidy Component (CLCS & TU Scheme) is a scheme offered by the Ministry of MSME that aims in facilitating technological upgradation in MSMEs with or without the need for the expansions of MSMEs. This SME scheme 2021 provides upto 15% of capital subsidy at the forefront.  

Eligibility Criteria for CLCS & TU Scheme

The CLCS & TU Scheme, SME scheme 2021 applies to existing and aspiring entrepreneurs. 

Nature of Assistance for CLCS & TU Scheme

Under this MSME loan scheme, the current revised scheme offers technological upgradation to MSMEs which includes, khadi, village, Coir,  tiny and other industrial units by providing a 15% capital subsidy upfront.

How To Apply for CLCS & TU Scheme

To apply for the MSE-CDP, SME Scheme 2021 you can follow the Scheme guidelines and visit any primarily lending institutions or the Office of DC (MSME) for the release of the subsidy. Click here to know more about the MSE-CDP Scheme. 

Assistance to MSMEs for Recovery and Organic Growth during COVID-19 (AROG)

The Small Industries Development Bank of India has launched a special scheme SME Scheme 2021, with a view to providing financial aid and assistance to all MSMEs who are involved in manufacturing medical and medicinal products and services. This SME Scheme 2021 aims in supporting all the MSMEs who are helping the nation to fight the novel Coronavirus. The MSME scheme also provides low collateral loans for MSME’s offering services related to the global pandemic. 

Eligibility Criteria for AROG

The ARGOG, SME scheme 2021 applies to provide to all MSME’s that are manufacturing products and services that help in directly fighting the coronavirus. The scheme is also available for those existing and new SIDBI customers. 

Nature of assistance for AROG

This SME scheme 2021 offers Rs. 200 lakh for eligible entities either in the form of a term loan (provided for acquiring capital) or a working capital term. The interest rates are fixed and the scheme also offers moratorium options. 

How to apply for AROG

You can submit your applications online, click here

If you are an MSME business owner and want to know more about how to get instant financial aid for your business, speak to our experts at Bikayi to know more. 

 

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