Assignment No.

7
Visit a bank/financial institute to enquire about various funding
schemes for small scale enterprise.

 Government Business Loan Schemes :

An economy's growth depends on its MSMEs (Micro, Small and Medium
Enterprises). MSMEs always provide a remedial solution to the significant
economic problems such as poverty, unemployment, income inequality, regional
imbalances and so on. Its vital role ensures a balance in local development, and
income equality. This industry is responsible for providing employment to millions
of people in our country, and the harnessing of local talent which in turn plays a
pivotal role in contributing to the GDP of the country. MSMEs are part of the
organized as well as the unorganized sectors. Yet, like all fledgling businesses, an
MSME entity faces a lot of hurdles to get the right kind of financial support for
various activities including, obtaining infrastructure to support existing business
activities or for business expansion.

1. MSME Loan in 59 Minutes:

• This scheme, also known as PSB Loan in 59 minutes, launched by the

Government of India in which introduced a quick business loan portal for the
individuals who need to expand their existing business.

• Under this scheme, MSMEs can get loan amounts from INR 1 lakh to INR 5
crores in less than 59 minutes at an interest rate of 8.50% from public and private
sector banks and NBFCs (Non-Banking financial companies). MSME/PSB
Loans in 59 minutes provides you with the required financial resources in the
stipulated time and pretty quickly.

• There are other benefits to this scheme:

i. The entire loan process expects to be duper quick and too, with minimal
documentation.

ii. The loan processes without human intervention until the last stage of the loan
sanction. That is why it is an Advanced Technology Backed Loans scheme.

iii. The loan process always needs a lot of safety and security of
applicant’s details. So, considered this issue, the entire data of the
applicant keep safe and secure with the highest level of security.

2. Pradhan Mantri MUDRA Yojana (PMMY):

• MUDRA stands for Micro Units Development and Refinance Agency Ltd.

• MUDRA provides refinancing support to Banks and NBFCs for lending to

Micro units having loan requirements up to INR 10 lakhs under the scheme of
Pradhan Mantri MUDRA Yojana. Under PMMY, MUDRA divided the loan into
three categories as ‘Shishu’, ‘Kishore’ and ‘Tarun’ to signify the stage of
growth/development.
3. National Small Industries Corporation (NSIC):

NSIC is an ISO certified Indian Government enterprise under MSMEs. It is

working to aid and promote the growth of MSMEs by providing combined
support services encircling finance, marketing, technology and other allied
services all across the nation. To encourage the growth of MSMEs, NSIC
provides various schemes:

i. Marketing Support Scheme Marketing support is significant for the development

of any business and also crucial for the growth of MSMEs in the present intense
competitive market. To support such enterprises, NSIC devised schemes such as
Consortia and Tender Marketing. NSIC forms Consortia of MSMEs working on
behalf of MSMEs to reduce Marketing Intelligence (NSIC setup marketing
intelligence cells to spreading awareness about several schemes for MSMEs)
and Exhibitions and Technology Fairs.

ii. Credit Support Scheme Under this scheme, NSIC provides finance for raw
material procurement, finance for marketing activities and finance through
syndication with banks to MSMEs.