Engine of Growth in India -Micro Small Medium Enterprises

The Engine of Growth in India -Micro Small, Medium Enterprises

India`s engine of growth the Micro Small Medium Enterprises have proved that they are pillars of Indian economy. It not just create employment opportunity but also enhanced the overall growth of the country. MSME`s work for the upliftment of all sections of the society, it has worked for the eradication of poverty, reducing income inequality, generating employment and removing unemployment etc. .

The Small Medium Enterprises are indulge in various sectors of the Indian economy viz- mining, information technology, packaging, manufacturing as well as services. The majority of SMEs (Small Medium Enterprises) operate in a variety of industries, including: –

• Services
• Manufacturing
• Mining
• Information technology
• Packaging

In general, both new and current businesses confront numerous hurdles in order to stay afloat. Whether it’s a little or large unit, they all want financial assistance. As a result, the Indian government has launched a number of schemes to support MSMEs in order to boost the country’s GDP.

Financial aid is the sole requirement for the upliftment of any kind of business organisation no matter whether it is a small or a big business organization. Various schemes are set in motion by the government of India for the upliftment of MSME and also to increase the GDP of the nation.

It is a branch of the Indian Government and is a top most executive body for the regulation, formulation and administration of all the rules, regulations and different laws related to micro, small, and medium enterprises running in India. Narayan Rane is the minister of Micro, Small and Medium Enterprises. The Headquarters of Ministry of Micro, Small and Medium Enterprises is Udyog Bhawan, Rafi Marg; New Delhi, 110011.

The initiative for the MSME was first taken in 2008-09 as a central sector scheme for the purpose of promoting self-employment in India by establishing micro-enterprises. These MSMEs are playing a very important role in making the country self-sufficient and self-reliant. There are more or less 6.3 crore MSMEs in India. Central Bank of India is regarded as the best bank for providing MSME loan.

Government Scheme for Business Loan:-

 There are various business schemes initiated by the Government of India, those ares follows:-

1)MUDRA- A Business Loan Scheme:-

Micro Units Development and Refinance Agency commonly called as MUDRA is a scheme that provides financial and monetary aid to Startups and Small Medium Enterprises to help them execute their requirements for running the business. Borrowers can access to MUDRA business loan by contacting banks, NBFCs& Financial Institution. There are 3 subcategories of MUDRA loan, these are mention below:-

1. Shishu Loans upto RS 50,000
2. Kishor Loans upto RS 5,00,000
3. Tarun Loans upto RS 10,00,00

Eligibility for Mudra Loan

• Age- 18-65 years
• Should be engaged in manufacturing, trading, service sectors.
• Requirement- Loan should be lower than RS 10 lakh.

2) CGTMSE-

Credit Guarantee Fund Trust for Micro& Small Enterprises (CGTMSE) is a business loan scheme formulated by the government of India and it is a trust name initiated by the Ministry of MSME and SIDBI (Small Industries Development Bank of India). The pivotal aim of CGTMSE is to provide loan for MSME sector which are provided collateral-free that is collaterals are not required for borrowing money under this particular scheme. Borrowers can borrow working capital loans up to RS 10 lakh.

Eligibility for CGTMSE

• Age- 21-65 years
• Eligible borrowers- New and Existing SMES.
• Should be engaged in manufacturing, trading, service sectors, excluding training institution, agriculture, educational institution etc.
• Requirement- should be lower than RS 200 lakh.

3) 59 Minutes Loan- MSME Loan:-

Micro Small and Medium Enterprises or MSME Loan is also refer to as 59 minutes loan. It is a business loan provided to individual, MSME, SME, and Startups. There are umpteen financial institution who offer MSME loans. The government of India has launched this special portal where businessmen get approval for loan in less than 59 minutes, this scheme has got another name as well which is PSB loan in 59 minutes.

It is utterly a online process where applicants are nort required to visit the branch. It ranges from RS 10 lakh to RS 5 crore.

Eligibility for 59 minutes loan:-

• Age- 22-65 years
• Business year- Minimum 3 Year
• Should be engaged in manufacturing, trading, service sector& sole proprietors and private companies are eligible.
• Income- Turnover should be RS 10 lakh per year, have profit for 2 years.
• Other requirement- Business as an MSME.

4) Credit Linked Capital Subsidy Scheme(CLCSS)

The main aim of the scheme is to offer technology up-graduation by facilitating 15% of the upfront capital subsidy to Micro& Small Enterprises(MSEs). It includes khaki, tiny, village units and coins industrial units to formulate the entire process of production. In this scheme women entrepreneurs are given more preference and can more easily access the CLCSS loan facility.

Eligibility for CLCSS:-

• Business Year required is minimum of 3 year.
• Beneficiary requirement- Co-operative societies, private and public companies, sole proprietorship, partnership under SSI units are eligible for this.
• Other requirement- MSEs should have a valid UAM number.

5) National Small Industries Corporation (NSIC)

This scheme was launched in the year 1995 under MSMEs. The main aim of this scheme is to promote the growth of MSME through out the nation by combining assistance scheme. It provide a lot of services viz technology, marketing, finance and support services. NSIC offers umpteen schemes to flourish the participation of MSMEs, these are as follows-

• Marketing Assistance- Marketing assistance are required by every business organisation to promote its brand so the work of NSIC is to form a connection between enterprises which will help MSME to come in contact with different institutional buyer under one umbrella.
• Raw Material Assistance- MSMEs are financially aided by NSIC for procuring raw materials both imported and indigenous at discounted rate because of these facilities MSME would work with all its efficiency and will give 100% focus on manufacturing goods and not worrying about the finance problems.
• Material Testing Labs- NSIC provides numerous laboratories for testing which are accredited by NABL/ BIS. It offers material and product testing, facility for energy audit.
• National SC ST Hub- Through this the NSIC targets to provide professional and expert assistance to people of Scheduled Caste and Scheduled Tribe so that they can also adopt applicable and beneficial business practices and leverage the Stand-up India initiative.

Category	Requirements
Micro Enterprises (Investment)	·         For service sector upto INR 10 lakh ·         For plant and machinery upto INR 25 lakh
Small Enterprises (Investment)	·         For service sector upto INR 2 Cr ·         For plant and machinery upto INR 5 Cr

 

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