Government MSME Schemes for Entrepreneurs

The Government of India offers some schemes to the MSME’s as they lack in resources and Technology and need assistance from big companies. Below are the schemes offered by the Indian government to Micro, Small and Medium Enterprises.

MSME Schemes – Launched by the Indian Government for Entrepreneurs

  • Udyog Aadhaar memorandum
  • Zero Defect Zero Effect
  • Quality Management Standards & Quality technology Tools
  • Grievance Monitoring System
  • Incubation
  • Credit Linked Capital Subsidy Scheme
  • Women Entrepreneurship

1. Udyog Aadhaar memorandum
Provides ease in availing credit, loans, and subsidies from the government with mandatory Aadhaar card.

2. Zero Defect Zero Effect
Manufacturers can be eligible for certain rebates and concessions if they manufacture export goods that adhere to certain standards.

3. Quality Management Standards & Quality technology Tools
Gives SMEs opportunities to learn to maintain quality standards while implementing new technologies through various seminars, campaigns, activities etc.

4. Grievance Monitoring System
Offers a platform for business owners to check the status of their complaints and open them if dissatisfied with the outcome.

5. Incubation
75% to 80% of the project cost can be financed by the government to help innovators with implementing new design, ideas or products.

6. Credit Linked Capital Subsidy Scheme
Capital subsidy for SMEs to upgrade obsolete technology and have better means to do their business.

7. Women Entrepreneurship
Only 14% Women amongst the total entrepreneurs in India. To enable women to start, manage and expand their business, the scheme provides capital, counselling, training and delivery techniques.

msme schemes india

NBFC Growth in India – Infographic

Factors That Led to the Growth of NBFCs in India

The transformation of Non-Banking Financial Companies (NBFC) in India in the past few years plays an important role in growth of Indian Financial system. NBFC’s have emerged successful as compared to Banks as their customized product offerings help individuals with their financial needs.

NBFC Credit Market growth is as shown below.

Financial Year Growth
2016 13%
2017 16%
2018 20%

NBFC’s grow at an average rate of 4%-6% every year. Following are the major factors that led to the growth of NBFC’s in India

Understanding the customer

  1. Focus on unorganized & under-served segments of the economy.
  2. Customization of rigid policies to meet customer needs

Customized product offering

  1. Emphasis on a limited line (or often a mono-line set of products) to serve the target customer segment
  2. Adoption of non-standard pricing models for product lines, in-line with the customer profile and inherent risk of lending

Leveraging technology

  1. Reduced time to market and enhanced customer experience
  2. Offering customized credit assessment models with optimized business processes

Reaching out to wider audience

  1. Catering to the needs of Tier-2, Tier-3 and Tier-4 markets
  2. Distribution of loans across several customer touch-points with 24/7 sales and service

Risk Management

  1. Improved governance with agile risk management model
  2. NBFCs continue to grow with Chief Risk Officer (CRO) ensuring the highest standards of risk management.

growth of nbfc in india