ECLGS and CGTMSE have been the go to credit schemes for MSMEs in India. What other schemes are available beyond these two? 

Here are the top 5 schemes available for businesses to ease their capital woes

  • PM Mudra Yojana
  • Prime Minister’s Employment Generation Programme (PMEGP)
  • Credit Linked Capital Subsidy Scheme (CLCSS)
  • PSB Loans in 59 Minutes
  • Stand-Up India

Credit options available under the Pradhan Mantri Mudra Yojana

MUDRA offers finance under three loan schemes – Sishu loan up to Rs. 50000, Kishore loan up to Rs. 5,00,000 and Tarun loan up to Rs. 10 lakhs. Mudra loans can be applied via banks, NBFCs, micro-finance institution, regional rural banks, and foreign banks. You can download the application form through the Mudra website. 

RBI has set a cap on the interest rate that can be applied for Mudra loans; so regional rural banks can charge 3.5% over and above the Mudra refinance rate, and NBFCs can charge 6% over and above the refinance rate. 

What is the Prime Minister’s Employment Generation Program(PMEGP)? 

The Prime Minister's Employment Generation Program provides micro-enterprises in the manufacturing and service sectors with credit-linked subsidies. The scheme provides financial assistance of up to Rs. 25 lakhs for micro enterprises in the manufacturing sector and up to Rs. 10 lakhs for organizations involved in the service industry. The PMEGP scheme offers an interest rate of 11-12%.

Applicants over the age of 18 and who have completed at least 8th standard school are eligible to apply for this loan. 

What kind of aid is offered under the Credit Linked Capital Subsidy Scheme (CLCSS)?

The CLCSS scheme offers financial aid for technological upgradation of your MSME business. 

What is the concept of PSB Loan in 59 minutes?

The PSB Loan in 59 Minutes scheme offers in-principal approval to a loan application in 59 minutes. It is an initiative of SIDBI. Loan amounts of Rs.1 lakh up to Rs.5 crores is available under this scheme.

What is the Stand-Up India scheme?

Stand-up India is a financial scheme aimed to help women entrepreneurs from SC/ST section of the society to setup their own business enterprise.