Best Five Government Loan Schemes for New Businesses in India -2022

(i) Bank Credit Facilitation:-

To fulfil credit needs of the MSME units, NSIC has partnered with various private and public sector banks. NSIC facilitates access to credit support to MSMEs from the bank by assisting in the documentation process, while following up with the banks.

To avail of loans, borrowers can download the loan application forms from the official website of the bank under the “Bank credit Facilitation Scheme”.

(ii) Raw Material Assistant Scheme:- 

MSMEs will receive assistance from NSIC to procure raw materials as per their requirements in the form of credit and advance payments. Any MSME in the manufacturing segments with a Udyog Adhar Memorandum (UAM) can take advantage of this scheme.

Single MSME units can avail of loans up to Rs.5 crore, while a group of units engaged in activities related to manufacturing can avail of loans up to Rs. 15 crore.

The rate of interest charged on loans available under this scheme range between 9.5% to 12%.

(iii) Single point Registration Scheme:-

To enhance the share of purchases from the MSME sector, the Single Point Registration The scheme was launched by NSIC in 1976 under the Government store Purchases Program.

This scheme enables MSEs to participate in government purchases through a single registration. MSE will be issued with a provisional Registration Certificate with a monitory limit of Rs. 5 Lacs. 385 no of items from MSEs will be reserved for exclusive purchase. 

(iv)Consortia and Tender Marketing:-

The scheme aims to promote the products of micro and small entrepreneurs. The scheme aids the entrepreneurs to market their products either individually or collectively through the “Consortium”.

Some of the features of this scheme are:-

·        Micro and Small Enterprises are registered with Single point Registration scheme (SPRS), will also be eligible to be covered under the Consortia and tender Market scheme.

·        This scheme will help in selecting the units which will be due to participate in open and single tender nomination basis.

·        This scheme also takes care of the security deposit and will provide EMD on a back to back basis.

·        This scheme will aid in the formation of a Consortium, and capacity building of MSMEs by the formation of consortia of their units manufacturing similar products, and participation in tenders on behalf of the units.

·        Legal documents such as individual agreement by the units, agreement to be executed by the consortium, board resolution, power of attorney etc. have been duly revised to accommodate the provisions of this scheme.

·        Enterprise formed under this scheme will supply the required stores with the necessary items and render services as required by the government department.

·        Under this scheme, all the information related to businesses, technology, finance and different types of aid offered by NSICs will be displayed in stop-one window format.

(v) Government Schemes implemented by NSIC:-

This is an initiative launched by the government of India which aims to help those belonging to SC and ST groups to start their own business successfully and take care of their financial requirements.

The Govt. of India to make this scheme successfully allocated Rs. 490 Crore for the period between 2016 and 2020. All new and existing SC and ST entrepreneurs must be registered in the MSME Data bank.

(v) Marketing Assistant Scheme:-

The MSME sector has been growing day by day in India. In the last few years MSME sector has been one of the one of the most dynamic sectors of the Indian economy. Various MSME schemes in India has established business and provide employment opportunities. 

One of the most important tools of any business is marketing. To promote it and grow is the main tool of every enterprise. The Ministry of Micro Small & Medium Enterprise, inter-alia through National Small Industries Corporation (NSIC), a public Sector Enterprise of the Ministry,, has been providing marketing support to MSMEs.