MAJOR SCHEMES

FOR
MSME’s SUPPORT
 Credit Support

1. Public sector banks advised to double the flow of credit

to MSMEs within 5 years (20% annual growth)
2. A minimum of 40% of bank credit earmarked for priority
sector lending which includes loans to MSEs
3. Specialised SME Bank branches in industrial clusters
for smooth flow of credit to MSMEs
4. One Time Settlement (OTS) scheme for settling NPAs
of MSMEs
5. Interest band prescribed
 Performance and Credit Rating
Scheme
1. Helps MSMEs in accessing credits from
banks & financial institutions, orders from
foreign buyers
2. Helps in assessing their strengths and
weaknesses.
3. Rating by one of the empanelled national or
international Rating agencies.
4. Government subsidises 75% of the cost of
Rating fee
5. Concessional credits from Banks/FIs to such
Credit Guarantee Fund for Small Enterprises

• Credit Guarantee Fund Trust for Micro & Small

Enterprises (CGFTSI) gives guarantee to its
Member Lending Institutions for their collatoral
free loans to MSEs upto INR 2.5 million (USD
64000).
• Initial guarantee fee at specified rate (1.5% ) of
the credit facility sanctioned shall be paid
upfront and thereafter annual fee.
• Provides comfort to the Banks and Financial
Institutions.
 Technological Support
1. Credit Linked Capital Subsidy Scheme for
Technology Upgradation
• Scheme meant to improve quality of products by technology
upgradation.
• Investment upto INR 10 million (US$ .250,000) eligible for
support with subsidy upto 15% on investment.

2. Technology Business Incubators for incubating

new enterprises
3. Testing Centres for Quality Certification
4. Tool Rooms and Training Centres for skill
upgradation
5. Incentive scheme for obtaining ISO Certification
by MSEs
 Marketing Assistance and Export
Promotion
1. Support for participation in trade fairs and
exhibitions – national as well as international
2. Training programmes on packaging for exports
3. Purchase preference in Government
procurement
4. Market Development Assistance Scheme for
publicity, market studies and adoption of
modern market practices
 Cluster Development Programme
• Grant upto 80% of Project cost with ceiling
of Rs.100 million to implementing agency
for:
 technology upgradation & productivity
improvement
 energy conservation & pollution
control
• Rs 1 million assistance for capacity
building activities without fixed assets
 Entrepreneurship Development
Programmes
• Prime Minister’s Employment
Generation Programme – PMEGP

• EDP Institutes

• Incubators
 International Cooperation
Programme

• Provides exposure to MSMEs to the

latest technologies, manufacturing
practices prevalent in their fields in
different countries.

• Encourages their participation in

international exhibitions for exports