MSME Loan Schemes
In India, there are approximately 6.3 crore MSMEs which involve in national and international trades, contributing about 29% towards GDP. MSMEs contribute to the economic and social growth of the nation and are a great way to decrease unemployment issues and promote local products. Our government understands the difficulties that every micro, small and medium business owners face in various stages of their business development process and the importance of MSMEs for the development of the country. Hence has structured various schemes to provide maximum support for each and every budding entrepreneur and MSMEs in every possible way to ease out every phase of their business.
1. Prime Minister Employment Generation Programme and Other Credit Support Schemes
With the education rate increasing year by year, unemployment problems are also soaring high. This scheme is structured with the motto of eradicating the unemployment issue and motivating emerging new businesses by providing necessary financial support.
Prime Minister Employment Generation Programme (PMEGP):
Implemented by Khadi and Village Industries Commission (KVIC) at the national level and through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks at the state level, the motto of this scheme is to make every eligible thriving entrepreneur get a subsidy in their bank account for developing a new business. Under this scheme, any new project in the manufacturing sector worth up to ₹ 25 lakhs and a new business/service sector worth up to ₹ 10 lakhs gets covered.
*Age above 18
*A maximum cost of the project should not be more than ₹ 25 lakhs for manufacturing projects and up to ₹ 10 lakhs for the business/service sector.
*For projects with an estimate of Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business/service sector, the beneficiary should have at least VIII standard pass.
*Only new projects are eligible
*Self Help Groups, Institutions registered under Societies Registration Act (1860), Production Co-operative Societies, and Charitable Trusts are also eligible apart from Individuals.
*The State/Divisional Directors of KVIC give advertisements via local media, radio and prints to invite applications.
*You can also submit your application online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp
Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE):
A promising scheme for micro and small enterprises, this CGTSME scheme provides credit-guaranteed funds to eligible beneficiaries from a Trust that is jointly established by the Ministry of MSME and Small Industries Development Bank of India (SIDBI).
*Both new and existing enterprises are eligible
*Only Individual Micro and Small Enterprises are eligible
You can visit banks and financial institutions which are eligible to provide loan under this scheme
Interest Subsidy Eligibility Certificate (ISEC):
To promote Khadi and Village Industry products, the government has shaped this effective scheme. With this scheme, any registered institution of KVIC or KVIB can avail loan from banks at a 4% p.a interest rate to develop their business. The lending bank gets the 4% interest from the beneficiary and the remaining part of the interest is remitted by the Central Government through KVIC.
Any registered institution of KVIC or KVIB can avail the loan.
You can apply in any recognized bank/financing institutions along with the ISEC certificate issued by KVIC.
2. Development of Khadi, Village and Coir Industries
To make way for the rural crafts and products to lend their part in the economic development of the nation and to uplift the rural population, several schemes have been introduced by the Ministry of MSME.
Market Promotion & Development Scheme (MPDA):
Like any other business, Khadi and village crafts need some marketing strategy to reach potential customers. With the motive of promoting Khadi crafts and increasing the income of artisans, this MPDA scheme is developed.
*Institution should have valid Khadi certificate
*The institution should be categorised as A+,A,B and C
The production Institution can claim the total amount from the KVIC and should be distributed to the stakeholders.
Revamped Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
With the motto to regenerate traditional industries, emphasize traditional skills, and ensure long-term sustainable income for rural artisans, the Ministry of MSME has designed this scheme. Under this scheme, artisans will be clustered and importance is given to enhancing product development, productivity, competitiveness, product intervention, and even packaging and marketing. Local artisans and entrepreneurs are provided with sufficient training and improved tools to face the upcoming challenges to optimize their income.
Depending on the number of artisans, the clusters are classified as
- Heritage cluster which includes 1000-2500 artisans
- Major cluster which includes 500-1000 artisans
- Mini cluster which includes up to 500 artisans
Based on its functionality, this Scheme can be classified as “soft interventions‟, “hard interventions” and “thematic interventions‟.
- Soft interventions include awareness training and marketing strategies like providing general awareness, counselling, skill development, organizing exposure visits, market promotion campaigns, product development, training programs, etc.
- Hard Interventions include physical structures like the creation of facilities for multiple products, packaging, common facility centres (CFCs), Raw material banks (RMBs), developing infrastructure like training centers and warehouses, etc.
- Thematic interventions emphasize both domestic and international markets and implement new strategies for brand building, media marketing, and e-Commerce.
Any Non-Government Organizations (NGOs), Institutions of the Central and State Governments and, Semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj institutions (PRIs), and similar agencies that are expertise in cluster development are eligible for this scheme.
You can submit the proposal to the State Office, KVIC. The proposal will be verified at State Level and Zonal Level before being submitted to the Scheme Steering Committee for approval.
Coir Vikas Yojana (CVY):
Coir industry is yet another rural business that profits around 7lakhs artisans by providing them employment and livelihood. In our country, coir and coir-related products are exported to 110 countries. Though benefiting towards the development of the country by making a huge profit in export, the coir industry needs attention and support for its survival and improvement. Hence several schemes are devised as action plans.
Coir Industry Technology Upgradation Scheme (CITUS)
A replacement of the “Development of Production Infrastructure” of Coir Vikas Yojana, CITUS provides financial support for entrepreneurs for procurement of machinery in establishing new plants or for upgrading/modernizing existing plants.
*Any coir production/processing unit that is newly established
*Any coir production/processing unit registered with Coir Board under Coir Industry (Registration) Rules, 2008 and having Udyog Aadhar can apply for modernization/upgrading.
You can submit the application online with all relevant documents prescribed.
Science and Technology (S&T) for Coir:
The main aim of this scheme is to ensure proper research work and training of entrepreneurs to stay in line with the current technology. The twin research institutes: the Central Coir Research Institute is located in Kalavoor and the Central Institute of Coir Technology that is located in Bangalore receive funds under this scheme to undergo the latest research works whose outcomes serve as an aid to train entrepreneurs in the coir industry for improved productivity and quality of products and thereby increased income.
The Central Coir Research Institute, Kalavoor and Central Institute of Coir Technology, Bangalore are eligible.
If you are a manufacturer or worker in a coir-industry, you can contact the research centers for assistance.
Skill Upgradation and Mahila Coir Yojana (MCY):
A scheme for providing self-employment opportunities to women in coconut-producing states, this MCY scheme strives to educate rural women about coir processing and coir-products manufacturing. The National Coir Training and Design Centre (NCT&DC), Kalavoor, Alleppey and Research-cum-Extension Centre, Thanjavur, and Field Training Centres of Regional Officers/ Sub Regional Offices of the Board located in various parts of the country play an active role in training women entrepreneurs.
Workers in coir industry
Trade Associations, Unit Owners, NGOs, Co-operatives and Industries Department can recommend candidates for training. The officer-in-charge of the Regional Extension Centre will finalize the candidates eligible for the training.
Export Market Promotion (EMP):
Apart from marketing the coir products locally, exporting those local-made products to various countries is sure to reap the artisans with higher profits. Understanding this, the Coir Board is implementing various export market promotion activities such as funding for publicity, participating in seminars, conferences and international fairs and presenting awards in the export sector as a token of recognition.
Any manufacturer, entrepreneur or exporter in the Coir industry is eligible under this scheme
You can get the application forms from the Coir Board HO or can download from the website http://coirboard.gov.in/ to apply for this scheme
Domestic Market Promotion (DMP):
This scheme is a milestone of the Coir Board in popularizing coir products within the country to help workmen and entrepreneurs in the coir industry. As part of this scheme, high-end showrooms are established, maintained and renovated. To showcase the products to the local customers, various fairs and exhibitions are conducted, exclusively for coir products, and are publicized by newspapers, television, radio and other media. Apart from that, the board takes steps in improving the quality of the products by fixing quality standards and regularizing inspection and certification processes.
Apex Co-operative Societies, Central Co-op. Societies, Primary Co-operative Societies, Public Sector Enterprises, franchisees appointed by Coir Board in the coir industry and the Showroom and Sales Depots / Hindustan Coir of the Coir Board are eligible for this scheme.
You can get the application forms from the Coir Board HO or can download from the website http://coirboard.gov.in/ to apply for this scheme
Trade and Industry Related Functional Support Services (TIRFSS):
Statistics is the backbone for the good planning of any business. As part of improving the coir industry, a reliable IT-related management information system is built for collecting and processing data related to production, productivity, labor infrastructure, raw material, marketing, etc. In the coir industry and to provide feedback for futuristic planning.
All Board’s officials, stakeholders, manufacturers, workers and major market players in the coir industry can avail this benefit.
You can approach the Head Office and Regional Offices of the Board to avail the service.
Welfare Measures -Pradhan Mantri Suraksha Bima Yojana (PMSBY):
Accidents and unexpected incidents are part of every business. To make sure the workers and their families are protected against accidental death, permanent total disability and permanent partial disability, the Coir Board has been implementing Coir Board Coir Workers Group Personal Accident Insurance Scheme since 1998 which provides insurance coverage under such circumstances.
*Any coir worker who is self-employed, employed under the SFURTI coir clusters, engaged in the units already registered with the Board, coming under the fold of Welfare Fund Board, PSUs, Corporations, Federations, Cooperative Societies, etc. is eligible for this scheme
*Should fall within the age of 18 to 70 years *Should have Aadhar linked Savings Bank account
Eligible worker will be allowed to join in the scheme only through Aadhar linked savings bank account.
3. Technology Upgradation and Quality Certification:
Quality and continuous improvement have a major impact on the development of any business/industry. While there should be a proper channel for quality certification to ensure reliable outcomes each time and every time, up-gradation in terms of technology, marketing and resources make the industry bloom to its highest potential. Hence, certain schemes are established to pave the right path in technology and upgradation.
Financial Support to MSMEs in ZED Certification Scheme:
“Make in India” is a great revolution that supports the local artisans and makes us feel proud to be Indians. While artisans are provided with the necessary funds and support to establish new MSMEs and continue traditional businesses under various MSME schemes, it is also necessary to ensure the quality of their outcomes.
Aiming toward flawless products is the Zero Defect & Zero Effect (ZED) manufacturing system which targets in reducing waste thereby increasing productivity and income. By providing Financial Support to MSMEs in ZED Certification Scheme, every MSME will work towards complying with quality standards, adopt new quality tools & systems and frequently upgrade their quality standards.
Any manufacturing MSME having Udyog Aadhar Memorandum is eligible.
*It is really simple to register on the online portal of ZED (www.zed.org.in) http://assessment.zed.org.in/Assessment/Assessment_BeforeLogin.aspx, using the valid (Indian) mobile number and email address.
*The Online self-assessment on the ZED parameters will be followed by Desktop Assessment. If selected then site assessment will be done.
**Note that the rated MSMEs can avail the service of an authorized ZED consultant for gap-analysis and handholding.
A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE):
To facilitate innovation in the MSME sector, especially promoting new business for un-met social needs and providing employment to fresh minds is the motto of ASPIRE.
Technical / research institutes can serve as knowledge partners for commercialization.
Livelihood Business Incubators/Technology Business Incubators and Incubation schemes of MSME / NSIC / KVIC / Coir Board / Other Ministries/Departments as well as Private incubators.
You can send your application to Aspire Scheme Steering Committee of the Ministry of MSME.
National Manufacturing Competitiveness Programme (NMCP):
This scheme aims at enhancing the competitiveness of the manufacturing units in the MSME sector.
Credit Linked Capital Subsidy for Technology Upgradation (CLCSS):
To let every entrepreneur in the MSME sector upgrade their technology wing, this scheme is a great boon.
You can approach SIDBI, NABARD, SBI, BoB, PNB, BOI, SBBJ, TIIC, Andhra Bank, Corporation Bank, Canara Bank and Indian Bank.
Marketing Support/Assistance to MSMEs (Bar Code):
The main aim of this scheme is to encourage MSMEs to use bar codes. Seminars are conducted to train the importance and the registration fee for barcoding is reimbursed to initiate active participation.
Any MSE with and registration with GS1 India for use of barcode.
Once you have registered for use of barcode for products, you can get the application form from the Director, MSME-DI, or download it from http://www.dcmsme.gov.in/ and submit the filled form to the office of MSME-DI.
Lean Manufacturing Competitiveness for MSMEs:
Lean is a technique that is widely accepted by successful manufacturing units to improve productivity and work style. To introduce and make effective use of Lean in MSMEs, the ministry has devised this scheme.
*Any manufacturing MSEs that have formed an MC (Manufacturing Consultant).
*A group of SMEs are eligible for the scheme.
*A Memorandum of Understanding MoU is required.
A recognised SPV or a mini-cluster formed by a group of 10 or more units can apply to the National Monitoring and Implementing Unit (National Productivity Council for the Scheme).
Design Clinic for Design Expertise to MSMEs:
New design strategies are sure to give a new dimension to any business. To motivate new strategies in MSMEs, the ministry has formulated this scheme.
Expert agencies, MSMEs or groups of MSMEs can apply
You can submit a proposal to the Design Clinic Centre or apply online at
Technology and Quality Upgradation Support to MSMEs:
Making improvements is an unavoidable part of a successful business. Hence to motivate MSME entrepreneurs to take necessary steps towards technical ad quality improvement, this scheme is formulated. The scheme aims mainly toward using energy-efficient technologies (EETs) in manufacturing which will drastically decrease the cost of production.
like PCRA, BEE, TERI, IITs, NITs, etc.
Applicant can apply in the specified format along with required documents for re-imbursement of fees to MSME-DI concerned.
Entrepreneurial and Managerial Development of SMEs through Incubators:
This scheme is a welcome note for new ideas in the MSME sector in terms of technology, process, product, etc. that can be implemented within a year time span.
*Any individual or MSME with innovative ideas
*Any technical institution who is ready to serve as a host institution
*Any technical institution that is willing to become a host institution can apply in response to the Request for Proposal (RFP)/ Expression of Interest (EoI).
*Any individual or MSME can visit their nearest host institution to apply directly.
Enabling the Manufacturing Sector to be Competitive through QMS&QTT:
Be it a product or a service quality matters. That is why these schemes are established to motivate the manufacturing sector to adopt the latest Quality Management Standards (QMS) and Quality Technology Tools (QTT).
Expert organiztions, Quality Council of India (QCI), National Recruitment Board for Personnel and Training, Consultancy Development Corporation, National Productivity Council, Standardisation, Testing & Quality Certification (STQC, a Society under the Ministry of IT), IIQM (Indian Institute of Quality Management), Industry Associations that have taken active interest in QMS/QTT, Technical Institutions, Engineering Colleges, Tool Rooms and similar bodies and MSEs
You may contact Office of the DC- MSME or refer the link www.dcmsme.gov.in/schemes/QmsQtt.htm for further details
Building Awareness on Intellectual Property Rights (IPR):
Innovative business ideas and strategies need to be protected as they are going to add uniqueness to your business. This scheme concentrates on creating awareness among MSMEs about Intellectual Property Rights and the need of protecting them.
Registered MSME units, associations, consultancy firms, expert agencies etc.
Application forms are provided at: www.dcmsme.gov.in/schemes/IPRDetail.html
4. Marketing Promotion Schemes:
To enhance the marketing strategies for the betterment of MSMEs, a few schemes are established by the Ministry of MSME.
International Cooperation Scheme:
Though hitting the international market is a bit tricky, it is worth the investment of money, time and energy. The same is applicable to the development of MSMEs too. The government has devised this scheme to enhance international marketing by providing support for MSMEs to participate in international exhibitions/ trade fairs, conferences/ summits/workshops, etc. To explore more about the industry and to market the products abroad.
Government Institutions and Registered Industry Associations associated with promotion and development of MSME sector.
You can sent applications in the prescribed form to the Director (International Cooperation), Ministry of MSME, Udyog Bhawan, New Delhi -110011.
Marketing Assistance Scheme:
Organizing exhibitions, buyer-seller meets, intensive campaigns and marketing promotion activities are the major emphasize of this scheme apart from co-sponsoring exhibitions and participating in exhibitions abroad as part of marketing the products of MSMEs.
MSMEs, Industry Associations and other organisations related to MSME sector are eligible
Applications should be submitted to the Branch Manager of the nearest National Small Industries Corporation
Procurement and Marketing Support Scheme (P&MS):
This scheme is an initiative to encourage Micro and Small Enterprises (MSEs) to develop domestic markets and to educate MSMEs about the possibilities of business development, trade fairs, latest market techniques.
Individual MSEs in Manufacturing/Service sector
You can submit your application online
Entrepreneurship Skill Development Programme (ESDP):
Skill development is an important aspect that helps you stay on track with the latest trend and competition. This scheme nurtures natural talent and educates young entrepreneurs about the latest strategies to help them create a successful business.
- 20 % of the ESDPs are conducted exclusively for weaker sections of the society i.e. (SC/ST/women and PH).
- A stipend of Rs.500/- per month per candidate is provided.
- Candidates are not charged fees.
Assistance to Training Institutions (ATI):
National level training institutions operating under the Ministry of MSME, namely, NIMSME, KVIC, Coir Board, Tool Rooms, NSIC & MGIRI, who take part actively in training young entrepreneurs, are provided funds to develop and improve infrastructure.
Institutions of Ministry of MSME and existing State level EDIs.
You can send your applications to the Director/Deputy Secretary (EDI), Ministry of Micro, Small and Medium Enterprises, Udyog Bhawan, Rafi Marg, New Delhi – 110 011
Micro & Small Enterprises Cluster Development (MSE-CDP):
While working as cluster productivity and competitiveness is sure to boost up a notch. Hence this scheme provides financial support for the establishment of Common Facility Centres (CFCs) for testing, training centers, R&D, Effluent Treatment, raw material depot, complementing production processes, etc., and improving existing industrial areas/clusters.
Clusters, Industrial associations/Consortia
*Online applications are available at https://cluster.dcmsme.gov.in
*Hardcopy of applications are to be sent through State Governments or their autonomous bodies or field institutes of the Ministry of MSME
On what base do enterprises categorized as micro, small and medium enterprises?
Both manufacturing and service sectors are categorized as micro, small and medium based on their investment as shown below.
< Rs.25 lakh
< Rs.5 crore
< Rs.10 crore
< Rs.10 lakh
< Rs.2 crore
< Rs.5 crore
How can Lendingkart help?
Although LendingKart does not offer government loans, being an NBFC we offer other easy alternatives. While the processing time of an MSME loan is long, we at LendngKart can process an alternative loan within 72 hours. Our online 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 interest rate. Looking for an alternative to MSME loans? Try LendingKart.
Government MSME Schemes for Entrepreneurs FAQs:
1. What is an MSME loan?
2. Is the borrowing of funding collateral free?
3. How does the schemes help in technological needs and advancement?
4. What support is offered for any form of cluster development?
5. How does the schemes provide help in skill development
6. Why is competitiveness in MSME sector important?
7. How do I know which loan I am eligible to apply for?
8. What is the purpose of MSME schemes?
9. How to ascertain the investment on machinery and plants?
10. Is MSME registration mandatory for a business venture?
11. Shall the applicant get a hard copy of the MSME registration certificate?
12. If one opts for online Udyam registration, what are the charges to be paid?
13. Is it feasible for a MSME registered venture to apply for a loan that is composite?
14. What is the validity of Udyam registration?
15. Can rejection of an MSME registration application be possible?
MSME Loan Scheme News
E New Schemes Launched to Strengthen MSMEs in Pharmaceutical Sector
On Thursday, the government announced 3 brand new schemes that focus on the MSMEs in the pharmaceutical sector. This step is taken in order to strengthen the Micro, Small, and Medium Enterprises in the country. Assistance to Pharma Industries for Common Facilities Scheme (API-CF) will be more focused on the existing cluster. The Pharmaceutical and Medical Devices Promotion and Development Scheme (PMPDS) will have its focus on preparing a database for the pharma and medical device sectors. Lastly, the Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) will be providing 10% of subsidy on loans of up to Rs. 10 crores.
One MSMEs will be given immense opportunities for growth and various other business ventures to try out.
News Updated Date: 26th July 2022
MSMEs’ access to credit is being made easier by the government: Official
A top official said that the government is working towards facilitating greater access to credit for Micro, Small, and Medium Enterprises (MSMEs). Access to affordable credit remains a challenge for all, especially MSMEs, MSME secretary BB Swain said.
India’s Small and Medium Enterprises (MSME) minister Swain has said the government is working towards bringing the tiniest of the micro-enterprises into a formal framework. He was speaking at a summit organized by the industry body CII on International MSME Day.
Finance Secretary Arun Jaitley outlined the key facts:
- Amount earmarked for MSMEs is Rs 2.31 lakh crore.
- The total amount of loans guaranteed under ECLGS (Emergency Credit Line Guarantee Scheme) is Rs 3.47 lakh crore.
India’s MSME Ministry to unlock the true potential of MSMEs in manufacturing, said at an MSME summit in Kolkata on Thursday.
News Updated Date: 1st July 2022
Tamil Nadu Government Announced an Allotment of Rs 100 Crore Under TNCGS to Support MSMEs
Under Tamil Nadu Credit Guarantee Scheme, the government of Tamil Nadu has set a package of Rs 100 crore to support MSMEs through guaranteed loans. For loans worth Rs 40 lakh, the guarantee percentile is 90, while for loans up to 2 crores, the guarantee percentile is 80. A website will get developed for this online scheme. The scheme will be enforced within six months jointly by the Tamil Nadu MSME department and Credit Guarantee Fund Trust for Micro and Small Enterprises. The chief minister of Tamil Nadu, Stalin, inaugurated coconut coir manufacturing plant in Thanjavur that can provide direct and indirect employment opportunities to 200 people. CM Stalin received a report from the expert committee formed to support the recovery of the MSMEs after the pandemic.
News Updated Date: 07-02-2022
MSMEs Constitute 95% of FY21 Loans in the Electrical Machinery Industry: Report
During FY21, in the Electrical Machinery Industry of 3 lakh credit borrowers, MSMEs made 95% of the overall loans and 30% of the overall credit value.
The credit bureau CRIF High Mark and SIDBI also said in a report that while INR 94,800 crore was the total credit value, the overall active loans were 1,99,490. The annual growth of 3.2% was recorded, while a 5.5% quarterly decline was recorded. During FY21, the total disbursed loans were 1,16,080, and INR 34,320 crore was the total credit value.
With an installed power capacity of 383.37 BW as of May 2021, India is currently the third-largest producer and the second-largest electricity consumer globally.
Sivasubramanian Ramann, CMD, SIDBI, said that the sector contributes to 8% of the country’s manufacturing production. With 1.5% to the country’s GDP and 1.5% to the country’s exports, the sector contributed to the country’s manufacturing production.
Ramann also added that by 2030, the government is targeting electric vehicle penetration of up to 30% to make domestic manufacturing economically feasible. This will ensure exponential growth for domestic manufacturers in the electrical machinery sector.
Updated Date: 07-02-2022
MSMEs ask for extending the credit guarantee scheme and a complete loan waiver
The MSME association of Pimpri-Chinchwad has requested the Union Commerce Minister Piyush Goyal for loan waiver and ease of credit. The association has also asked for an extension of the credit guarantee scheme of scheduled and cooperative banks.
President of the association Sandeep Belsare spoke of the issues faced by the industry due to the two-month lockdown in Maharashtra. Banks asked for regular servicing of loans while there were zero outputs in the industry.
Belsare also mentioned that the scheme only covered nationalized banks. The units lending from banks other than national banks did not get the benefits of the scheme. Additionally, for working capital, Belsare asked for a 1% relief in the interest rate the banks extend to them.
During the interaction with Goyal, Belsare requested special guidelines for the easier availability of loans. The reluctance of nationalized banks to provide loans is also a major issue.
Updated Date: 26-01-2022
MSME groups applaud the start of the technology upgrade plan
According to industry authorities and trade organizations, one of the main difficulties inhibiting the expansion of MSMEs in India is a lack of contemporary technology and equipment, making small enterprises undesirable in the export market. It is a positive step because MSMEs were the worst hit by the epidemic. At this time, any strategy that encourages MSMEs to grow and use new technologies is a step in the right direction. “We are pleased that the government has reintroduced it”, according to Ramamurthy, a member of the All-India Council of Association of MSMEs, which represents 170 MSME organizations throughout the nation.
The initiative provided a capital subsidy of 15% on institutional funding of up to Rs 1 crore obtained by MSMEs to modernize of their equipment and machinery. In FY21, the number of MSMEs who took advantage of the technology upgrade plan was at an all-time high. Furthermore, at 1,102.57 crores, the capital subsidy support granted was the highest in FY21.
According to Yogesh Pawar, Chairman of the Association of Inspiring Syndicate of Entrepreneurs, “this loan program would undoubtedly assist lessen the credit gap that exists for the MSME sector, as well as promote the attempts toward innovation.” According to an unnamed representative from a Delhi-based MSME Association, “few MSMEs in India can afford new modern technology since it is quite expensive.”
Updated Date: 14-12-2021