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Government MSME Schemes for Entrepreneurs

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MSME stands for Micro, Small and Medium Enterprises. These enterprises require special agendas and financing for proper profiteering and prosperity. MSME is a government scheme and its main goal is to provide benefits to small scale enterprises so they can get a boost in a competitive business world. MSME schemes for service sector helps new entrepreneurs to set up their business under the MSME loan schemes. MSME schemes for SC ST entrepreneurs are also available.

What are the MSME schemes 2019 provided by the Government of India?

Some of the MSME schemes approved by the Government of India that we shall look upon are listed below.

  1. Udyog Aadhaar Memorandum scheme
  2. Incubation
  3. Women Entrepreneurship
  4. Grievance Monitoring System
  5. Zero Defect Zero Effect scheme
  6. Credit Linked Capital Subsidy scheme
  7. Quality Management Standards and Quality technology tools

Let’s take a look at these schemes so you can choose the best for your MSME set up.

How can Lendingkart help?

Udyog Aadhar Memorandum Scheme

This scheme replaces a previous registration process called the SSI registration or MSME registration. The previous process was riddled with a lot of paperwork and submissions, for MSME registration. With this scheme, the registration is done using only two forms: Entrepreneur Memorandum-I and Entrepreneur Memorandum-II replacing the 11 forms of the previous process.

The process is free and completely online. MSME’s registered through this scheme using Aadhaar are entitled to MSME loans, government subsidies, hassle-free bank accounts in the name of the MSME and much more. The scheme as a whole has registered around two lakhs small-scale businesses in the MSME category and makes the sector of these businesses an organized one with holistic and maximum benefits. The MSME scheme for SC/ST entrepreneurs is recognized by the system separately and the MSME schemes benefits are provided for them.

Incubation

Under the incubation scheme, the government supports new and innovative ideas such as new designs and new products. The government provides financial assistance to Host Institutions (HI) which are exploring and implementing new ideas in their respective service sectors. The financial assistance pertains to 75-85% of the project cost with a maximum limit to INR 8 lakhs. This scheme actively promotes technological advances and knowledge innovations by financially assisting ingenious ideas. The eligibility for MSME schemes depends on the innovation that a company can come up with.

Women Entrepreneurship

Women entrepreneurs are at a lacking figure, with only 14% of all entrepreneurs being women. To promote and cater to the potential of women entrepreneurs, many schemes provide benefits and skill-training to young women who desire to take up entrepreneurship and MSMEs as an option. MSME schemes for enterpreneurs pdf are unmatched in providing help that is specifically available for women.

The scheme takes care of women who may not have adequate educational background for handling entrepreneurship and hence provides training in the field. A prize named ‘Outstanding Women Entrepreneur’ is awarded every year. The prize is given to recognise achievements and innovations of women entrepreneurs, hence it promotes entrepreneurship for women.

There are many other schemes that exist to serve the purpose. One such scheme is Income Generating Scheme, which provides training-cum-income generation through entrepreneurial activities. This scheme aims to make women economically well-founded and independent by financing their ideas and MSMEs. A Government MSME loan is also provided to bright women entrepreneurs.

Grievance Monitoring System

This scheme is launched to monitor and cater to all sorts of complaints and suggestions by business and MSME owners. It aims to make the system of grievance handling transparent and fast. Grievance and complaint lodging is simple and easy. It is a completely online process.

Many kinds of complaints and queries are attended by this monitoring system, though certain grievances regarding a Subjudice matter, any personal dispute, a case under RTI proceedings are usually not catered to.

One can track the status of their complaint by clicking on the ‘view status’ button on the website. There is a unique registration number attached to each complaint and the system keeps updating the progress of the complaint on a regular basis.

Zero Defect Zero Effect Scheme

The Zero Defect Zero Effect scheme also called the ZED scheme is a call to the manufacturing industry. It calls to manufacture goods that have zero defect, hence better quality products and also calls to manufacture goods in an environment friendly way so that it has ‘zero effect’ environment. This scheme is applicable for all MSMEs and addresses various issues of quality of goods that are manufactured and exported and ecological needs of the country and other countries around the world. The ZED maturity assessment model is established to certify manufactured products on various levels such as safety, performance, environmental responsibility, etc. This MSME schemes for exporters is a great benefit to exporters to foreign countries.

Credit Linked Capital Subsidy scheme

This scheme provides a capital subsidy of up to 15% for MSMEs to cater to advancements in technological needs. It aims to provide plants and machinery of MSMEs with state of the art, contemporarily relevant technology. The scheme aims to cater to MSMEs, including those dealing with khadi, coir and village units. The institutional finance availed by these for making a well-established and upgraded technology will be covered under the scheme. MSME Schemes for startups are also available under this scheme and any start-up requiring technological advancement can opt for it through here.

Quality Management Standards and Quality Technology Tools

This scheme aims to induce consciousness of quality in the products manufactured by the MSME sectors. This scheme inculcates a sense of good competitiveness among the different entrepreneurial establishments and hence ensures quality production of goods.

These tools of Quality Management Standards (QMS) and Quality Technology Tools (QTT) employs a sense of competition and hence competitive prices are also included in the act of manufacturing. The usage of these tools aims to instil a consciousness of using resources efficiently, improving quality of products, reducing rework on already manufactured goods, reducing inventory build-up at the various stages of the manufacturing process. This scheme’s implementation also helps in MSME export entrepreneurship as it inculcates a sense of international quality standards.

The scheme is implemented through awareness drives, workshops, study missions, teacher training projects, etc. This MSME schemes for food processing and food packaging industries is beneficial as it resorts to quality assurance.

How can Lendingkart help?

Although LendingKart does not offer government loans, being an NBFC we offer other easy alternatives. While the proceesing time of an MSME loan is long, we at LendngKart can process an alternative loan within 72 hours. Our onlilne document submission process facilitates us to complete the verification process quickly. In addition, using our financial data analytics we make sure to provide the lowest ineterst rate. Looking for an alternative to MSME loans? Try LendingKart.

msme schemes india

Government MSME Schemes for Entrepreneurs FAQs:

1. What is an MSME loan?

Micro, Small amd Medium Enterprises loan is a loan provided by banks and schemed by the government to engage individuals in the manufacture and production of goods, preservation of products and setting up markets of goods. The government MSME loan can be availed by any individual who is running an enterprise under the funding as specified below: • Micro Enterprises-Funding not more that 25 lakh • Small Enterprises-Funding between 25 lakh and 5 crore • Medium Enterprises-Funding between 5 crore and 10 crore

2. Is the borrowing of funding collateral free?

Yes, many schems mentioned above are collateral free.

3. How does the schemes help in technological needs and advancement?

Under many of the schemes, it is covered that 15 % capital subsidie is provided to the MSM enterprise for upgradation of technological needs.

4. What support is offered for any form of cluster development?

Some schemes provide counselling, awareness through workshops, seminars, and training about cluster development of MSMEs.

5. How does the schemes provide help in skill development

The schemes and the Ministry covering the scheme’s various kinds of training modules and workshops, programmes that support all forms of way of self-employment and growing businesses.

6. Why is competitiveness in MSME sector important?

The competition between different MSMEs ensure that the quality of products made is maintained and doesn’t fall short.

7. How do I know which loan I am eligible to apply for?

Visit the official website of the Ministry to know more about the eligibility – https://msme.gov.in/all-schemes

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