In every country, there is always a larger population and scarce job opportunities. The goal of a start-up is to provide more job opportunities for people. The government of India has launched various schemes for helping start-ups to grow and for increasing the employment rate in India.
1] MUDRA- The Micro Units Development and Refinance Agency or MUDRA for short, this scheme provides funds to Micro and Small enterprises. What sets MUDRA apart from other loan schemes is the fact that no collateral is required to avail of this loan. The maximum loan amount that an enterprise can is offered is ten lacks. The loan is provided for manufacturing, trading, and agricultural services. There are 3 loan schemes under the MUDRA.
- SHISHU Loan: Loans up to Rs. 50,000 (For start-ups and new businesses)
- KISHOR Loan: Loans from Rs. 50,001 to Rs. 5,00,000 (For buying equipment/machinery, raw materials, the business expansion for existing enterprises)
- TARUN Loan: Loans from Rs. 500,001 to Rs. 10,00,000 (For established businesses and enterprises)
2]NABARD- The National Bank for Agriculture and Rural Development provides benefits to agricultural as well as rural industries. They provide short term as well as long term loans. The short term loans or crop loans are credited up to Rs 55,000cr, the long term is given for farm and non-farm activities. The course for long term loans is from 18 months to a maximum of 5 years, the credit loans are credited up to 65,240. The scheme also provides help for entrepreneurs related to the dairy market. It also provides off-farm schemes
3] Credit Guarantee Scheme- The CGTMSE is a scheme set up by the government to business loans for micro and small industries. They aim to boost new industries and provide loans with the help of SIDBI [100 lacks]. These loans can be availed for manufacturing units.
4] NewGen IEDC- This program is introduced by the Science and Technology Board to encourage the young generation to develop the spirit of entrepreneurship in science and technology. It applies to fields related to health services, food, and beverages, renewable and nonrenewable resources. Loans of up to 25 lacks are given to these startups.
5] Raw Material Assistance- This scheme helps micro, small, and medium-sized industries. It helps them purchase the raw materials to build and low rate. The scheme provides 90 days of financial assistance.
6] Loan For Roof Top Solar PV Projects- This scheme promotes solar energy development, it was established by the Indian renewable energy development agency. This scheme provides an amazing project cost, where the IREDA provides 70% of the cost and the entrepreneur has to pay the remaining 30%. The loan has to be repaid in a maximum of 9 years.
7] Stand up India scheme- This scheme was launched in 2016. It was established solely for women entrepreneurship, every bank must lend money to at least one woman entrepreneur. It provides loans between 10 to 100 lacks. SC and ST communities are also provided help through this scheme. The loans have to repay by 7 years.
8] CLCSS- The Credit Linked Capital Subsidy Scheme encourages manufacturing units to buy the latest equipment. This scheme provides loans of up to 1 lack.
Contributed By- Tehreem Khaku, Content Writer at Mitti Ke Rang
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