MUDRA Loans

Pradhan Mantri Mudra Yojana (PMMY) is a scheme set up by the Government of India (GoI) through MUDRA (a subsidiary of SIDBI) that helps in facilitating micro credit upto Rs. 10 lakh to small business owners. MUDRA supports Financial Intermediaries to extend loans to the non-corporate, non-farm sector income generating activities of micro and small entities with credit needs upto Rs. 10 lakhs). The interventions have been named 'SHISHU', 'KISHOR' and 'TARUN' to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur.

Shishu (Covering loans upto Rs. 50,000/-)

 

This stage would cater to entrepreneurs who are either in their primitive stage or require lesser funds in order to get their businesses started.

Kishor (Covering loans upto Rs. 5,00,000/-)

 

This section of entrepreneurs would belong to either those who have already started their business and want additional funds to mobilize their business.

Tarun (Covering loans upto Rs. 10,00,000/-)

 

If an entrepreneur meets the required eligibility conditions, he/she could apply loan for upto Rs.10 lakhs. This would be the highest level of amount that an entrepreneur could apply for a startup loan.

 

Basic Eligibility criterion

The business should be either one of the following:

• Small manufacturing enterprise
• Shopkeepers
• Fruit and Vegetable vendors
• Artisans
• 'Activities allied to agriculture', e.g. pisciculture, bee keeping, poultry, livestock, rearing, grading, sorting, aggregation agro industries, diary, fishery, agriclinics and agribusiness centres, food & agro-processing, etc. (excluding crop loans, land improvement such as canal, irrigation and wells).

 

Fact Box

The loans under MUDRA scheme can be availed only through banks and lending institutions which include:

• Public Sector Banks
• Private Sector Banks
• State operated cooperative banks
• Rural banks from regional sector
• Institutions offering micro finance
• Financial companies other than banks

 

Apply for MUDRA Loan  

You can also apply for Mudra Loan online on “Udyamimitra” Portal (www.udyamimitra.in) by registering yourself and your application shall be viewed by many lenders for credit support.

Apply here for Registration

 

Finding Difficult in Filling Application?

Finding difficult in filling application…. Don’t worry … the portal will help finding the correct person / right agency to fill the form on your behalf. All you need is to fill in basic personal details with request for agency / person (fees may be charged by the agency / person) on udyamimitra portal. This facility is called as HAVE (Handholding in a virtual Environment). So, if you are planning to set up and intend to apply for loans

More questions?

Your enquiry (as an applicant, Handholding agency or bankers) can be aptly handled at FAQ (Frequently Asked Questions) section.

Or

Call Us at National Toll Free Number 1800 180 1111/1800 11 0001

STAND-UP INDIA

What is Stand-Up India scheme

Stand-Up India (SUI) scheme for financing SC/ST and/or Women Entrepreneurs has been launched by Hon’ble Prime Minister (PM) on April 05, 2016.

The objective of the SUI scheme is to facilitate bank loans between Rs.10 lakh and Rs. 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur.

Micro Small and Medium Enterprises (MSMEs)

So, you have decided to be a job giver – An Entrepreneur

Applying for a loan at a physical location, means that you are approaching just one lender. When you apply for a loan in person, you may need to book an appointment. You could be waiting in a queue. You may have to travel for a while, to reach the lender’s physical premises.

Remember that business loans can be used for setting up new enterprise or stepping up (expansion, diversification, modernization, technology upgradation). These can be for the following:

• Acquisition of factory, land and construction of building spaces,
• Purchase of Plant and Machinery including lab equipment, testing equipment, furniture, electric fittings, etc
• Meeting working capital requirements, like raw materials, stock-in-progress, finished goods, etc
• Trade Finance (Bill discounting) – for paying the creditors, while awaiting payment from debtors
• Launch of new product range, expansion of business, warehousing need, credit for marketing and advertising purpose
• Additional monitory assistance for any eligible purpose.

It’s good that you have made up mind for applying business loan online. You will have choices of wider range of lenders (Banks / NBFCs / SFBs/ FinTechs) who can access your application and according to your geographic location, the nearest lender may approach you or a fintech from another city may also touch base you.

This means, you can apply online 24/7. You can apply even in your spare time at leisure. If you have your budget / documents / information ready, you will find the application forms are easy to fill in.

Click Here to Register Yourself to apply for MSME Loan

Understand MSMEs

MSME (Micro, Small & Medium Enterprises) are classified in two ways:

• Manufacturing Enterprises engaged in the manufacture or production of goods pertaining to any industry or deploying plant and machinery in the process of value addition to the final product having a distinct name or character or use; and


• Service Enterprises engaged in providing or rendering of service

The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery and Service Enterprises are defined in terms of investment in equipment.

Let’s understand it in a better way

Finding Difficult in Filling Application

Need not to worry the portal will help finding the correct person / right agency to fill the form on your behalf. All you need is to Click here and fill in basic personal details with request for agency / person (small amount of fees may be charged by the agency / person). This facility is called as HAVE (Handholding in a virtual Environment).

Subsidies and incentives are provided by the Government of India

Various Subsidies and incentives are provided by the Government of India to promote a vibrant business. For any entrepreneur / promoter setting up a new startup or having an established business, it is important to know about these subsidies and incentives which can be availed while incurring capital expenditure to reduce capital cost, lessen interest burden and to achieve break-even faster. So, it’s the right place to Click for various subsidy schemes

No collateral security?

Government of India and SIDBI have set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Also, National Credit Guarantee Trustee Company (NCGTC) has been set up by the Government of India to act as the Trustee to operate the Credit Guarantee Funds for Educational Loans, Skill Developments Loans and any other funds to be set up from time to time. You can choose to avail the benefits of these Guarantees based on your loan needs through the Lenders.

Udyog Aadhaar (UA)

MSMEs are required to obtain Udyog Aadhaar Memorandum (UAM) which is for running units. It is not required for upcoming units. For registering yourself as a MSME under UAM, you can visit the following web link: Click here for Udyog Aadhaar Memorandum (UAM) Registration

Facing Liquidity Problems

MSMEs face constraints in obtaining adequate finance, particularly in terms of their ability to convert their trade receivables into liquid funds. The problem of timely realization of receivables persists despite the fact that the MSMED Act, 2006 mandates payments to MSMEs be made within 45 days of acceptance of goods and services.

TReDS is an online electronic institutional mechanism for facilitating the financing of trade receivables of MSMEs through multiple financiers. The TReDS Platform will enable discounting of invoices/bills of exchange of MSME Sellers against large Corporates including Govt. Departments and PSUs, through an auction mechanism, to ensure prompt realization of trade receivables at competitive market rates.

Receivables Exchange of India Ltd (RXIL), is a joint venture promoted by Small Industries Development Bank of India (SIDBI) and National Stock Exchange of India Limited (NSE). RXIL operates the Trade Receivables Discounting System (TReDS) Platform.

MSMEs benefit due to timely payments in a transparent mechanism at very competitive pricing. Assured of timely cash flows ensures better quality of products and processes in the long run for MSME sector

PM SVANidhi

Background

Street vendors represent a very important constituent of the urban informal economy and play a significant role in ensuring availability of the goods and services at affordable rates at the door-step of the city dwellers. They are known as vendors, hawkers, thelewala, rehriwala, theliphadwala etc. in different areas/ contexts. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, footwear, artisan products, books/ stationary etc. The services include barber shops, cobblers, pan shops, laundry services etc. The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. They usually work with a small capital base and might have consumed the same during the lockdown. Therefore, there is an urgent need to provide credit for working capital to street vendors to resume their business.

Objectives

The scheme is a Central Sector Scheme i.e. fully funded by Ministry of Housing and Urban Affairs with the following objectives: (i) To facilitate working capital loan up to `10,000; (ii) To incentivize regular repayment; and (iii) To reward digital transactions

The scheme will help formalize the street vendors with above objectives and will open up new opportunities to this sector to move up the economic ladder.

Eligibility of States/UTs

The Scheme is available for beneficiaries belonging to only those States/UTs which have notified Rules and Scheme under Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. Beneficiaries from Meghalaya, which has its own State Street Vendors Act may, however, participate.

Eligibility Criteria of Beneficiaries

The Scheme is available to all street vendors engaged in vending in urban areas as on or before March 24, 2020. The eligible vendors will be identified as per following criteria:

(i) Street vendors in possession of Certificate of Vending / Identity Card issued by Urban

Local Bodies (ULBs); (ii) The vendors, who have been identified in the survey but have not been issued Certificate of Vending / Identity Card;

Provisional Certificate of Vending would be generated for such vendors through an IT based Platform. ULBs are encouraged to issue such vendors the permanent Certificate of Vending and Identification Card immediately and positively within a period of one month.

(iii) Street Vendors, left out of the ULB identification survey or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC); and

(iv) The vendors of surrounding development/ peri-urban / rural areas vending in the geographical limits of the ULBs and have been issued Letter of Recommendation (LoR) to that effect by the ULB / TVC.

To know more please click here (Read More)

Animal Husbandry Infrastructure Development Fund

Scheme Background

The recently announced Prime Minister’s AtmaNirbhar Bharat Abhiyan stimulus package mentioned about setting up of Rs. 15000 crore animal husbandry infrastructure development fund (AHIDF).

The animal husbandry infrastructure development (AHIDF) has been approved for incentivizing investments by individual entrepreneurs, private companies, farmers producers organizations (FPOs) and Section 8 companies to establish

(I) The dairy processing and product diversification infrastructure,

(II) Meat processing and product diversification infrastructure and

(III) Animal feed plant.

Objectives of Scheme

A) To help increasing of milk and meat processing capacity and product diversification thereby providing greater access for unorganized rural milk and meat producers to organized milk and meat market

B) To make available increased price realization for the producer

C) To make available quality milk and meat products for the domestic consumer

D) To fulfill the objective of protein enriched quality food requirement of the growing population of the country and prevent malnutrition in one of the highest malnourished children population in the world

E) Develop entrepreneurship and generate employment

F) To promote exports and increase the export contribution in the milk and meat sector.

G) To make available quality concentrated animals feed to the cattle, buffalo, sheep, goat, pig and poultry to provide balanced ration at affordable prices.

The AHIDF will incentivize the following activities :

A) Incentivizing the dairy processing and diversified products’ infrastructure

B) Incentivizing the meat and meat product processing infrastructure

C) Incentivizing establishment of feed manufacturing unit.

To know more please click here (Read More)

me4WE initiative by SIDBI

A group of women employees of SIDBI and some successful women entrepreneurs have volunteered to help women entrepreneurs approaching the portal as part of the me4WE (mentor enablers for women entrepreneurs).

Our Mentors are here in Voluntary Women club to help you in each and every step. To get in touch with them register / login to the portal. Please click here for (Login/Registration).

Swavalamban Sankalp

Giving Fillip to Stand Up India (SUI) Scheme

“Swavalamban Sankalp”

(An Opportunity for SC-ST aspirants to kick start their Entrepreneurial Journey to become “स्वावलंबी” - a Job Giver Instead of Job Seeker)

स्वावलंबन संकल्प – जिसका नहीं है कोई विकल्प

SIDBI along-with Dalit India Chamber of Commerce and Industry (DICCI) launched the ‘Swavalamban Sankalp – MEGA CAMPAIGN’, a series of One day Awareness Outreach & Business Opportunity Program’ has been launched on Pan India to give a fillip to “Stand Up India (SUI) Scheme” – a flagship program of Hon’ble Prime Minister of India to increase the effectiveness of the SUI program and strengthen the MSME ecosystem targeted at development of unserved / underserved youth and entrepreneurs from Schedule Caste (SC) and Scheduled Tribe (ST).  

The key objectives of “Swavalamban Sankalp” initiative are:

• To strengthen the ecosystem targeted at development of the SC-ST Entrepreneurs by increasing the penetration of SUI Scheme.
• To develop SC-ST entrepreneurship culture in the country to catalyse the advocacy, implementation & discharge of SUI scheme
• To fulfil the vision of Stand-Up India Scheme of creating 1.25 Lakh SC-ST entrepreneurs through the branches of nationalised banks.
• Targeting aspiring SC-ST youth and entrepreneurs, officials from State Government, District Lead Bank with representatives of all other nationalized banks, Industry Association/s, other relevant.
• Market linkages to business opportunities, through DICCI-SPARK mentoring program, by bringing Franchisee Business Models (Plug & Play) and Business Idea Gallery for match making between SC-ST entrepreneurs and financial institutions.
• State Vendor Development Program (SVDP) to connect existing and new entrepreneurs to Central & State PSUs to propagate and take leverage of Public procurement policy of Govt. of India and encourage SC/ST entrepreneurs to take advantage of 4% of procurement target fixed to CPSUs and Govt. Departments.

Swavalamban Sankalp is an attempt to ignite the spark for business leadership in the targeted SC-ST youth and entrepreneurs. This awareness outreach & business opportunity program is a participative interaction by all stake holders, providing platform for awareness and genesis of business development. It shall be an opportunity for the invited businesses to showcase their franchise models, the aspiring SC-ST entrepreneurs to identify a business of choice and the financial institutions to generate business leads and/or grant In-principle sanctions to the aspiring SC-ST entrepreneurs. Efforts would be made to rope in SC/ST entrepreneurs.

In Phase-I, till March 31, 2020, 15 programs were to be conducted by DICCI, however, due to COVID Pandemic, only 09 awareness programs could be conducted at Lucknow, Bhopal, Pune, Ahmedabad, Nagpur, Jaipur, Delhi, Chandigarh, and Vijayawada. More than 2300 participants attended these programs.

While, the unlocking started in the country in phased manner, however, due to restrictions on the public gathering, it was felt & decided for resumption of the “Swavalamban Sankalp” programs through online mode i.e. Webinar Series.

Accordingly, the “Swavalamban Sankalp” – Webinar Series has been launched on 27^th November 2020. As part of the Webinar Series, the programs shall be organized on a weekly basis for reaching out to aspiring SC-ST entrepreneurs.

>The schedule for the upcoming programs of December 2020 are as under:

Web Link to Join the Program – https://tinyurl.com/Swavalamban-Sankalp-2

Join to take leverage / advantage from the program to kick start your entrepreneurial journey