Micro, Small, and Medium Enterprises (MSMEs) play a vital role in India’s economic growth by promoting employment, innovation, and exports. To empower this sector, the Indian government has launched numerous government schemes for MSMEs that provide financial assistance, skill development, technology upgradation, and market access.
In this article, we’ll explore the major MSME schemes listed in the MSME Ministry’s official scheme booklet, along with how Udyamita Helpline can help you apply for and benefit from them.
Why Government Schemes For MSMEs Are Important
MSME programs that would help develop and sustain small businesses will be extremely beneficial for the economy. The programs support MSMEs by:
- Providing low-interest, easy-to-obtain loans
- Offering subsidy or funding assistance
- Supporting robust employment and entrepreneurship
- Helping with training or tech upgrades
- Providing assistance with marketing or export assistance
- Providing support on other issues (such as late payments)
- Supporting women or rural entrepreneurship
Top 15 Government Schemes For MSME (Central Level)
Here are the top 15 Central Government schemes that support the growth and development of MSMEs in India:
- Udyam Registration: This is a valid registration for MSMEs, which will provide recognition and access to government benefits, including financial assistance, grants, and loans.
- PMEGP (Prime Minister Employment Generation Programme): It is a facilitator scheme to those who want to set up a small manufacturing unit or service with government aid.
- CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises): This scheme permits financing of loans for MSMEs without collateral or for a loan secured by a mortgage.
- MUDRA Loan (Shishu, Kishor, Tarun): The MUDRA Loan will provide loan assistance of ₹10 lakh to small businesses for starting or expanding their business activities. MUDRA provides loans in three segments – Shishu, Kishor & Tarun.
- Stand-Up India Scheme: This scheme provides loans to women entrepreneurs and SC/ST entrepreneurs, specifically to encourage the development of small businesses for self-employment.
- CLCSS (Credit Linked Capital Subsidy Scheme): That scheme provides a subsidy to micro, small, and medium enterprises (MSMEs) for new machines and instruments purchases for technology adoption.
- ZED Certification Scheme: The Zero Defect Zero Effect (ZED) scheme permits micro, small, and medium enterprises (MSMEs) to elevate the quality of their products and shift to sustainable alternative production processes.
- MSME Samadhaan: The MSME Samadhaan scheme aims to provide MSMEs with access to online grievance redressal regarding delayed payments by buyers, which enables MSMEs to recover payment promptly.
- MSME Sambandh: The MSME Sambandh scheme facilitates transparency in public procurement and aids MSMEs with access to participate in the community economy´s public tenders.
- TReDS (Trade Receivable Discounting System): TReDS permits MSMEs to manage cash flow by conducting invoice discounting from corporations and banks.
- SFURTI Scheme: The SFURTI scheme seeks to bolster traditional industries by engaging artisans to facilitate traditional geographical clusters, to navigate continuing access to larger structures, and by providing traditional clusters and family-owned businesses with new materials and training.
- Coir Udyami Yojana: Under this scheme, entrepreneurs setting up coir-based ventures will be given financial assistance.
- Design & IPR Scheme: The scheme supports MSMEs to improve the product design, as well as assists in patenting their innovation.
- Incubation Scheme: The scheme offers support and mentoring to new business ideas, in addition to finance and other technology.
- EPCG (Export Promotion Capital Goods): This scheme provides no customs duty on the machinery that MSMEs import under this scheme to support their export effort.
Benefits Of These Government Schemes for MSME
Government schemes for MSMEs offer a wide range of benefits that help small and medium businesses grow, compete, and sustain in the market. Here are the key advantages:
- Financial Assistance: Grants, loans at subsidized interest rates, and subsidies.
- Collateral-Free Loans: Borrowing without collateral.
- Skill Building: Training and support for growing your business.
- Support with Equipment: Assistance in upgrading your equipment and introducing technology.
- Access to Markets: Opportunities at trade shows and online marketplaces run by the government.
- Tax Incentives: Exemptions, tax credits, and tax holidays.
- Export Support: Help to export your products.
- Protection Against Slow Payment: Protection under Section 17 of the MSMED Act.
- Business Credibility: It provides credibility with banks, investors, and clients.
How To Avail of Government Schemes For MSMEs?
If you are considering applying for the government schemes on MSMEs, here are the steps to take:
Step 1: Get Udyam Registration
You will need to apply for Udyam registration of your business on the Udyam Registration Portal. Once you get this completed, you will get a Udyam Registration Number (URN), which will facilitate many MSME schemes.
Step 2: Identify the Scheme You Would Like to Apply For
You can check either on the MSME Ministry website or on the Udyamita Helpline portal on various schemes that MSME’s can receive benefits from. This could be, credit support, technology upgradation, marketing, skill, development etc.
Step 3: Check the Eligibility of the Scheme
Most schemes have some eligibility criteria related to either the size of the business, turnover, or perhaps a percentage of their business sector. Once you have read through the guidelines you will know what eligibility they expect in their own application process.
Step 4: Collect Required Documents
Expect some document verification as part of the process. It would be important to know what documents are needed. While it may not be exhaustive, documents can be Udyam certificate, business PAN, GST number, bank information, project reports.
Step 5: Complete Online or Physical Application
Complete an application on the official MSME portal or ministry, some may offer an option you can take advantage of their resources and apply.
How Udyamita Helpline Helps MSMEs Avail These Schemes?
The Udyamita Helpline offers a business support system that assists MSMEs and start-ups with access to government registrations, funding schemes, and related compliance. The various ways Udyamita Helpline can help you maximize your access to Government schemes for MSMEs:
- Assessment of Eligibility & Scheme Selection: The team will assess your business profile, area of business, turnover, investment, location, etc. to determine which government schemes will be most beneficial to your business.
- Document Preparation & Application Support: They will help you write your business plans, project reports, and application documentation, and confirm you meet the requirements for the Grant Application by the Government.
- Take Care of your Udyam Registration: Udyam Registration is a requirement for all MSME scheme applications, and Udyamita Helpline will help your organisation with Udyam and support during the registration process (including help to troubleshoot common issues with applications).
- Follow-Up & Contact the Government: The team can help you with follow-ups, communicate any department questions to the department for you, and prompt the department for you on next steps with your application through the approval process.
- Training and Advisory Support: Udyamita Helpline will provide training and or webinars on topics including the growth of MSMEs, digital marketing, finance, etc., formatted to support entrepreneurs and their understanding with regard to using government support for growing their business.
- Post-Approval Monitoring: Once approved, they can assist with your compliance reporting, which will help you continue to receive the subsidy benefit.
Conclusion
The Indian government provides several schemes for MSMEs in various areas such as productivity enhancement, innovation, and market access. Several loans are available under the schemes that involve funding, technology upgrades, and skills development across India for small businesses.
However, the process of determining how to apply can be complex. Therefore, Udyamita Helpline is a critical mechanism to help entrepreneurs identify appropriate schemes, organize their documents, and successfully access government schemes.
FAQs
What Schemes Exist For MSMEs in The Government?
Government schemes for MSME are programs formed by the Indian government to provide financial assistance, support for skill development, technical assistance, and greater access to markets for MSMEs.
Who Is Eligible For Schemes For MSMEs?
MSMEs that registered for Udyam Registration, and in some instances, individuals, self-help groups (SHGs), or even rural entrepreneurs, may be eligible depending on the scheme.
How Can Udyamita Helpline Assist MSMEs?
The Udyamita helpline assists MSMEs with the selection of schemes, documentation, Udyam registration, tracking an application once submitted, training, and/or compliance once a loan is approved.
Can MSMEs Get a Loan Without Collateral?
Yes, loan schemes such as CGTMSE can provide MSMEs loans and don’t require providing any security for the loan.
