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Schemes Launched by Indian Government for Business Fundings

The Micro, Small and Medium Enterprise sector of the Indian economy is a steadily expanding one. For the last few years, this MSME sector has contributed about 30% to India’s total GDP.

Despite this progress, MSMEs often find it difficult to gather capital to fund their endeavours. To meet this steadily rising demand for capital, the government has introduced various schemes that provide collateral-free MSME loans to these organisations.

For instance, schemes like Pradhan Mantri MUDRA Yojana and Credit Guarantee Fund Trust for Micro and Small Enterprises have been introduced to cater to the funding requirements of businesses of various sizes.

PMMY

For instance, the Sishu, Kishor and Tarun products under PMMY can provide small-ticket loans of up to Rs. 50,000, Rs. 5 Lakh and Rs. 10 Lakh respectively. Further, if the organisation has higher credit requirements, it can avail an advance of up to Rs. 2 Crore under CGFTMSE.

Apart from government schemes, these organisations can also avail these collateral free advances as business loans from various Non-Banking Financial Institutions in India like Bajaj Finserv. These advances provide a high-amount value of up to Rs. 30 Lakh and come with industry-first features like flexible tenor, instant approval and disbursal, minimal documentation, etc.

To avail these efficient financing solutions for MSMEs, one needs to fulfil only a few requisite eligibility criteria and submit the required documents.

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