India has about 40 million Micro Small and Medium Enterprises (MSMEs), including registered and unregistered ones. MSMEs fall under the categories of both the organized and the unorganized sectors. These MSMEs contribute to about 40% of the total GDP of India, and it remains a critical source of employment. The payday loans Luverne Alabama MSMEs provide solutions to critical issues in the country like poverty, unemployment, income inequality, regional imbalances, etc. The government for this purpose has introduced various schemes to sanction loans to MSMEs to boost their business and their economy. The entrepreneurs who run such MSMEs can borrow money in the form of a loan through any one of the schemes that suit their requirements.
MSME Business Loans in 59 Minutes
MSME business loan in 59 minutes is one of the most loan schemes introduced by the government in . The loans sanctioned under this scheme are to boost financial assistance to the growth of the country and to also encourage their growth in the country. The scheme allows new and existing businesses to utilize the financial assistance that is provided by the scheme. The loans provided under these schemes extend up to Rs. 1 crore and take about 8 to 12 days to complete the process, wherein the approval for the loan is received within 59 minutes which is prie of the scheme is known as MSME business loan in 59 minutes. The rate of interest depends on the nature of the business that is carried on by the applicant of the loan. The interest of such loans begins at 8.5%, and the loan amount granted under this scheme can range from 1 lakh to 5 lakh. The following are the requirements for obtaining a loan under this scheme:
- GST verifications
- Income tax verifications
- Bank account statements for the last 6 months
- Ownership related documentation
- KYC details
MUDRA Loans
The MUDRA loans are sanctioned by the Micro-Units Development and Refinance Agency organization that has been established by the government of India for providing finance to units of micro-business. The theme behind MUDRA loans is to fund the unfunded. All bank branches across India provide MUDRA loans. Such loans have created the low-cost credit concept for micro and small businesses. The MUDRA loans are categorized as under:
Eligibility criteria
All businesses including proprietary concern, partnership firm, Private Ltd., Public Company and other legal entities are eligible to apply for a loan under this scheme.
Stand-Up India
Stand-up India scheme introduced by the Government to provide loans for businesses run by Scheduled Castes/ Scheduled Tribes and women. Small Industries Development Bank of India (SIDBI) governs this scheme. The loan granted under this scheme can range from Rs. 10 lakhs to Rs. 1 crore. Every bank must provide this loan to a minimum of one Scheduled Caste/Scheduled Tribe or woman entrepreneur. According to this loan, the fund is expected to cover about 75% of the cost of the total project.
Eligibility
Those businesses engaged in trading, manufacturing or other sectors relating to services are eligible to avail loan under this scheme. If the business is not an individual undertaking, then a minimum of 51% of the shares must be held by an individual who is a woman or who belongs to Scheduled Caste/ Scheduled Tribe.
Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGFMSE)
This is a loan scheme that is launched by the government of India that allows for funding through loans without collateral to those businesses that fall under the MSME sector. The loans under the scheme can be granted to both new and existing enterprises. The Credit Guarantee Fund Trust is a trust that has been established by the Ministry of MSMEs and the Small Industries for the purposes of implementing the CGFMSE scheme. The funding under this scheme can provide for working capital loans up to Rs. 200 lakhs with preference to eligible women entrepreneurs.
