Credit and Financial Assistance to MSMEs
Prime Minister’s Employment Generation Programme (PMEGP)
Description: The scheme aims to generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures / projects /micro enterprises.
The Scheme is implemented by Khadi and Village Industries Commission (KVIC), as the nodal agency at the National level. At the State level, the Scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and Banks. Only new projects are considered for sanction under PMEGP.
Nature of Assistance: Subsidy under PMEGP (% of project cost): General category 15%(Urban), 25%(Rural); Special Category (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.): 25%(Urban), 35%(Rural).
Who can apply: Any individual, above 18 years of age can apply (For project costing above 10 lakh in manufacturing and in 5 lakh in service sector. He should have passed at least VIII standard. Self Help Groups, Institutions registered under Societies Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible.
How to apply: Only online application is accepted. The beneficiaries can submit their application online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jspt Whom to Contact. Khadi and Village Industries Commission (KVIC) “Gramodaya” 3, Irla Road, Vile Parle (West) Mumbai- 400056(Maharashtra), Helpline-www.KVIC.org.in, Email- kvichg@bom3.vsnl.net.in, Fax-022-26711003, Tel-022- 26714320-25/26716323.
Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)
Description: The objective of CLCSS is to facilitate technology to MSEs through institutional finance for induction of well established and proven technologies in the specific sub-sector/products approved under the scheme.
Nature of Assistance: Upfront subsidy of 15% on institutional credit upto Rs. 1.0 Crore (i.e. subsidy cap of Rs. 15.00 lakh) for identified sectors/subsectors/technologies.
Who can apply: Any Micro and Small Enterprises (MSEs) unit. How to apply: Candidates meeting the eligibility criteria may approach 11 nodal banks / agencies. These are SIDBI, NABARD, SBI, BoB, PNB, BOI, TIIC, Andhra Bank, Corporation Bank, Canara Bank and Indian Bank. Whom to Contact: Nodal Bank/ Agency under the Scheme and Development Institutes under DC-MSME; ADC, O/o DC (MSME), Nirman Bhawan, New Delhi, Tel : 011 -23062694.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Description: Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in order to implement Credit Guarantee Scheme for Micro and Small Enterprises (MSEs). The corpus of CGTMSE is contributed by Government of India and SIDBI.
Nature of Assistance: Collateral free loan upto a limit of 200 lakh.
Who can apply: New as well as existing Micro and Small Enterprises.
How to apply: SMEs meeting the eligibility criteria may approach eligible banks/ financial institutions/ Regional Rural Banks/ NBFCs.
Whom to Contact: CEO, CGT-MSE, SIDBI, Swavalamban Bhavan, C-11, G-Block, BKC, Bandra (East), Mumbai -400051, Tel : 022-67531100.
2% Interest Subvention Scheme
Description: The Scheme aims at encouraging both manufacturing and service enterprises to increase productivity and provides incentives to MSMEs for onboarding on GST platform which helps in formalization of economy, while reducing the cost of credit. The Scheme is be in operation for a period of two financial years FY 2018-19 and FY 2019-20.
Nature of Assistance: The interest relief will be calculated at two percentages points per annum (2% p.a.), on outstanding balance from time to time from the date of disbursal / drawal or the date of notification of the scheme, whichever is later, on the incremental or fresh amount of working capital sanctioned or incremental or new term loan disbursed by eligible institutions.
Who can apply: All MSMEs who has Valid Udyog Aadhar Number [UAN] and Valid GSTN Number shall be eligible as beneficiaries under the Scheme.
How to apply: MSMEs may apply to eligible lending institutions under the scheme.
Whom to Contact: CEO, SIDBI and MSME Development Institutes under DC-MSME; 0/o DC (MSME), Nirman Bhawan, New Delhi, Tel : 011-23061176.
Skill Development and Training to MSMEs
Entrepreneurship and Skill Development Programme (ESDP)
Description: The objective of the programme is to : 1. Motivate young persons representing different sections of the society including SC/ST/ Women, physically handicapped, Ex-servicemen and below poverty line (BPL) persons to consider self-employment or entrepreneurship as one of the career options. 2.Capacity building of existing MSMEs through Awareness and Managerial Development Programes. Intended Beneficiary: (i) Youth representing different sections of society including SC/ST/ Women, Physically Handicapped, Ex-servicemen and Below poverty line(BPL) persons. (ii) Existing MSME’s.
How to apply: ESDP Programmes are implemented through MSME-Dls/TCs/State Governments/Agencies/Organisations.
Whom to Contact: MSME-Development Institutes and MSME-Technology Centres under DC-MSME; JDC/DD, 0/o DC (MSME), Nirman Bhawan, New Delhi, Tel : 011 -23061198/23061091
Infrastructure Support to MSMEs Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Description: The main objective of the scheme is to organize the traditional industries and artisans into clusters to make them competitive and provide support for their long-term sustainability and economy of scale.
Nature of Assistance: The Scheme would cover three types of interventions: ‘Soft Interventions’, ‘Hard Interventions’ and ‘Thematic Interventions’. The financial assistance provided for any specific project shall be subject to a maximum of Rs. 5 (Five) crore.
Who can apply: Non-Government Organizations(NGOs), Institutions of the Central and State Governments and Semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj Institutions (PRIs), etc. with suitable expertise to undertake cluster development. (ii) Private Sector participation is also encouraged for the implementation of cluster projects. Corporate entities can also take up projects directly by forming cluster-specific SPVs.(iii) Corporate and Corporate Social Responsibility (CSR) foundations with expertise in cluster development are encouraged to participate as Implementing Agencies. In casewhere a private sector entity is the IA, it shall contribute at least 50% of the total project cost excluding the cost of land.
How to apply : The eligible agency/ organization have to submit the proposal to any of the other designated Nodal Agencies under the scheme ( as mentioned in the guidelines and as appointed from time to time) for onward submission to Scheme steering committee for approval.
Whom to contact: Director\Deputy Secretary (ARI), M/o MSME, Udyog Bhawan,New Delhi, Tel: 011-23061543.