1. Government schemes for
funding business
Presented by:
Ferdinand Alick Castelino

2. Government Business Loans:
 Government of India provides many business loans.
Some of them are:
1) Pradhan Mantri Mudra Yojana (PMMY)
2) Stand-Up India
3) PSB Loans in 59 Minutes
4) National Small Industries Corporation (NSIC) Subsidy
5) SIDBI Make in India Soft Loan Fund for MSMEs (SMILE)
6) Credit Guarantee Scheme (CGS)
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3. Eligibility Criteria:
The factors of eligibility criteria involve the following:
 Age of the applicant
 Loan amount
 Type of Business
 Credit Score
 Annual Turnover
 Capital Invested
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4. Pradhan Mantri Mudra Yojana (PMMY)
 There are three types of loans in PMMY, namely :-
 The first category which is known as Shishu loans are for
extremely small business units and can loan you a sum of
money upto Rs 50,000.
 The second category is known as kishore loans which are for
slightly bigger units and lends above Rs 50,000 but upto Rs 5
lakh.
 The third category known as Tarun covers loans above Rs 5
lakh and upto Rs 10 lakh for units requiring loans bigger than
the category of Shishu and Kishore loans.
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5.  Eligibility: Non Corporate Small Business Segment (NCSB) comprising
of proprietorship/enterprise firms in rural and urban areas can apply for
the loan. Here are some examples of NCSBs:
 Small manufacturing units
 Service sector units
 Shopkeepers
 Fruits / vegetable vendors
 Truck operators
 Food-service units
 Repair shops
 Machine operators
 Small industries
 Artisans
 Food processors and others
 All kinds of manufacturing, trading and service sector activities can get a
MUDRA loan.
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6. Stand-Up India:
6• Governed by Small Industries Development Bank of
India (SIDBI), Stand up India was initiated to provide
funding to people who come under SC/ST category
and women entrepreneurs. This scheme provides
bank loans between Rs. 10 lakh and Rs. 1 crore to at
least one SC/ST borrower and one woman borrower
per bank branch.
• Eligibility: Enterprises in trading, manufacturing, or
services sectors are considered eligible for this
scheme. . In case of non-individual enterprises at least
51% of shareholding stake should be with an SC/ST
or woman entrepreneur.

7. PSB Loans in 59 Minutes
 On Nov 5, 2018, our Prime Minister, unveiled a dedicated digital platform or web portal
named as psbloansin59minutes to enable loans of up to Rs. 5 crore in just 59 minutes
for startup business and MSMEs. The government startup loans were launched to
provide financial assistance to the Micro, Small and Medium Enterprises (MSMEs)
throughout India.
Some of the great features about this facility are:
 Fast access to financial assistance: Usually such loan processes take about 7-10
working days to complete. However, the loan approval process takes in just 59 minutes
 Loan amount: The loan amount offered under this loan will be between Rs. 1 Lakh and
maximum is up to Rs. 5 crore
 Rate of interest: The rate of interest offered under this scheme is 8.50% onwards
 Quick disbursal: After the loan gets approved in an hour, you can expect the money to
reach in your bank account in 7-8 working days
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8. National Small Industries Corporation (NSIC)
Subsidy
 The government aids the small business under National Small Industries
Corporation Subsidy (NSICS) with a focus on two financial benefits:
marketing assistance and raw material assistance.
Its benefits are as follows:
 Cost-free tenders: Under the marketing assistance program, the Small-
Scale Industries (SSIs) shall have access to the tenders without any costs.
 No security deposit requires: The SSIs (Small Scale Industries) are
exempted from paying a security deposit for availing finances.
 Land and building financing: For the SSI units with the project cost not
exceeding Rs. 25 Lakh, the scheme provides a financial facility for land and
building department.
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9. SIDBI Make in India Soft Loan Fund for
MSMEs (SMILE)
 Launched in 2015, SMILE is governed by Small Industries Development
Bank of India (SIDBI). The aim of this scheme is to provide soft loans,
to meet the required debt-equity ratio for the establishment of new
MSMEs and also to enable the growth for existing ones. The interest
rate offered under SMILE scheme is
8.36% onwards.
 Eligibility: New enterprises on board along with the existing
manufacturing and services sectors can apply for this scheme. Existing
enterprises undertaking up-gradation or starting other projects for
expanding their business will also be covered under this scheme. The
maximum loan repayment tenure is 10 years with 36 months of
moratorium period.
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10. Credit Guarantee Scheme (CGS)
 Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
scheme was launched by the Government to strengthen and facilitate the
credit delivery system to the MSME sector. Public, private, and foreign
banks along with Regional Rural Banks (RRBs) and the SBI with its associate
banks are included into the lending institutions under this scheme.
 Eligibility: New and existing MSMEs engaged in manufacturing or service
activities, excluding retail trade, educational institutions, agriculture, Self-
Help Groups (SHGs), training institutions are eligible for this scheme.
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11. THANK YOU.
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