MSME REGISTRATION AND LOAN ASSISTANCE

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India designed to provide micro credit and loans of up to ₹10 lakh. The scheme targets income-generating micro enterprises in the non-farm sector, including manufacturing, trading, and service sectors, as well as activities allied to agriculture such as poultry, dairy, and beekeeping. PMMY offers financial assistance through Member Lending Institutions to non-corporate, non-farm entities engaged in small-scale income-generating activities. These entities include proprietorships, partnerships, small manufacturing units, service units, shopkeepers, vendors, truck operators, food-service units, repair shops, artisans, and food processors, among others.Benefits of PMMY Loan Highlighting the stage of growth / development and funding needs of the beneficiary micro unit/ entrepreneur, the scheme has been categorized as Shishu, Kishore, Tarun. Shishu: Loans up to ₹50,000. Kishore: Loans above ₹50,000 and up to ₹5 lakh. Tarun: Loans above ₹5 lakh and up to ₹10 lakh. Eligibility for PMMY Loan Individuals Proprietary Concerns Partnership Firms Private Limited Companies Public Companies Any other legal forms

Launched by: Ministry of MSME, Government of India Purpose: To provide collateral-free loans to micro and small enterprises. Key Features: Feature Details Loan Type Term Loan / Working Capital Loan / Composite Loan Loan Amount Up to ₹5 Crore Collateral No Collateral Required Guarantee Coverage 75% to 85% of the loan amount (up to 85% for women & special category) Eligible Borrowers Micro & Small Enterprises (including startups) Interest Rate As per lender's MCLR + applicable spread (~7% to 14%) Tenure Up to 10 years Processing Time 7 to 21 days depending on bank and documentationMust be Micro or Small Enterprise (as per MSME definition) Should be engaged in manufacturing or service activities Not a defaulter with any bank or financial institution Should have a business plan and relevant KYC/business documentsYou apply for a loan with a bank or NBFC that is a CGTMSE member. The lender applies for guarantee cover with CGTMSE. If your loan defaults, CGTMSE repays up to 75-85% of the outstanding amount to the lender. No need to mortgage land or property.

Working Capital for MSMEs is a type of short-term loan or credit facility provided to Micro, Small & Medium Enterprises (MSMEs) to help manage their day-to-day operational expenses. This includes payments for raw materials, wages, rent, electricity, etc. To purchase raw materials To pay salaries and wages For utility bills and office expenses To manage seasonal demand To keep business running when payments from customers are delayed Feature Details Loan Amount ₹50,000 to ₹10 Crores Interest Rate ~7% to 14% (varies by bank and scheme) Tenure 6 months to 3 years Security Often collateral-free under CGTMSE scheme Processing Time 7 to 15 days (faster with Udyam Registration)

An Equipment or Machinery Loan is a type of business loan specifically used to purchase new or used machinery, tools, or equipment required for business operations. Purpose: To buy or upgrade machinery and production equipment • Loan Amount: ₹1 Lakh to ₹5 Crore (varies by lender) Benefits: • Boosts productivity through modern equipment • Helps reduce manual work and operational delays • Improves product quality and delivery timelines • Loan can be repaid in easy EMIs • Loan Tenure: 1 to 7 years • Collateral: Sometimes required, depending on the lender and loan amount • Tax Benefit: Depreciation on machinery can be claimed under Income Tax Act

🇮🇳 Stand-Up India Scheme प्रधानमंत्री स्टैंड-अप इंडिया योजना Launched by: Government of India (April 2016) Nodal Agency: SIDBI (Small Industries Development Bank of India) Purpose: To provide loans to SC/ST and women entrepreneurs to start or expand their businesses. Feature Details Loan Amount ₹10 Lakh – ₹1 Crore Type of Loan Composite loan (term loan + working capital) Collateral No collateral required (covered under CGTMSE) Repayment Period Up to 7 years (with up to 18 months moratorium) Eligibility SC/ST or Women entrepreneur above 18 years Business Type Greenfield only (new ventures) Margin Money Minimum 10% (can be covered via subsidies) Applicant must be: A woman entrepreneur, or Belong to SC/ST category Age above 18 years Business must be: A new venture (Greenfield) In manufacturing, service, or trading sector Not a defaulter with any bank If the enterprise is a partnership or private limited company, the majority shareholder (51% or more) must be SC/ST or a woman.

PMEGP is a government-backed loan scheme launched by the Ministry of MSME to help individuals start new small businesses and generate self-employment. Detail Information Scheme Name Prime Minister’s Employment Generation Programme (PMEGP) Managed By Khadi & Village Industries Commission (KVIC) Purpose To provide financial help for starting a new manufacturing or service business Loan Amount Up to ₹50 Lakhs (Manufacturing) / ₹20 Lakhs (Service) Subsidy 15% to 35% (depends on locatio n & category) Bank Loan 60% to 75% of project cost Repayment 3 to 7 years (including 6-month moratorium) Eligibility Criteria: • Age 18 years and above • Minimum education: Class 8th (for projects above ₹10 lakh) • Only for new businesses (existing units not eligible) • Individuals, SHGs, Societies, Trusts, Co-operative Societies can apply • Must not have taken any other central subsidy for that business