Government Schemes

In the midst of the COVID-19 pandemic, the government is paying special heed to the challenges faced by the MSME sector, and have launched relief plans and special schemes aimed at easing their discomfort. Stay updated with the latest news and government initiatives for the MSME sector here.

Atmanirbhar Bharat Abhiyaan Economic Package

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As per the Atmanirbhar Bharat Abhiyaan Economic Package announced on 13th May, 2020-

  • Definition of MSMEs will be revised
  • Investment limit will be revised upwards
  • Additional criteria of turnover also being introduced
  • Distinction between manufacturing and service sector to be eliminated
  • Necessary amendments to law will be brought about

*The definition of Investment and Annual Turnover are yet to be notified.

New Benefits under Atmanirbhar Bharat Scheme
The Atma-nirbhar Bharat Abhiyaan Economic Package is the government’s efforts to revive the MSME sector by announcing key relief measures. Take a look:
  • Equity funding will be given to MSMEs with growth potential through a Fund of Funds, having a corpus of Rs.10,000 crore to help them upscale
  • The government will be providing financial relief to businesses (companies with less than 100 employees) during the COVID-19 crisis by supporting EPF contributions for employers and their workers for 3 more months (until August 2020).
  • The PF contribution of both the employer and employee will be reduced to 10% each (down 2% from the current 12%) for the next 3 months so that salaried employees will have a slightly higher cash in hand. (*Note: there are some companies who are exceptions to this).
  • The date of filing tax returns has been extended to 30th November 2020. Also all tax refunds to be issued to small businesses, professions and charitable trusts will be cleared at the earliest.
  • The rate of tax deducted at source (TDS) and tax collected at source (TCS) have been reduced by 25% — a large difference to all consumers and businesses.

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 uptoRs. 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 uptoRs. 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.

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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.

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Micro Small And Medium Enterprises Loans

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.

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PM Street Vendor’s AtmaNirbhar Nidhi

PM SVANidhi scheme announced by the government of India aims to provide financial aid to Street vendors during the situation of COVID-19 pandemic. GoI has identified the urgent need to provide credit for working capital to street vendors in order for them to resume their businesses, as due to consequent lockdowns they might have exhausted their capital base and impacted their livelihoods adversely. The Scheme will be available to all street vendors engaged in vending in urban areas as on or before March 24, 2020

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Guidelines for Credit Guarantee Scheme for Subordinate Debt ( CGSSD) for stressed NPA MSMEs

Udyam registration – Classification of MSMEs and procedure for registration

Subsidy to 'Shishu' borrowers under Mudra Yojna

As per ‘Atmanirbhar Bharat Abhiyan’ or ‘Self-reliant India Scheme’, Government of India introduced various benefits under MUDRA Shishu Category

  • Relief of Rs. 1500 crore to MUDRA Shishu loan borrowers
  • Rs. 1500 crore Interest subsidy for MUDRA Shishu Loan category
  • Government of India shall provide Interest discount of 2% for fast recipients for a period of 12 months

Interest Subvention Scheme for MSME - 2018

Small Industries Development Bank of India (SIDBI) is the single national level nodal implementation agency for the "Interest Subvention Scheme for MSMEs" announced by The Ministry of Micro, Small and Medium Enterprises (MSME),

Mission Swavalamban

SIDBI’s Mission Swavalamban is to promote ‘Har Ghar, Ek Swavalambi’. The major objective of the mission is to promote entrepreneurship culture in the country. The mission has Pan India presence and it carries a national level holistic and coordinated approach.

PRAYAAS Scheme

The objective of this scheme is to extend credit to micro borrowers at the bottom of the pyramid at a competitive rate under partnership arrangement with microfinance institutions, NBFCs, BCs, Fintech, etc.

GeM – “Government e-Market Place

Government e-Marketplace owes its genesis to the recommendations of two Groups of Secretaries made to the Prime Minister in January 2016. They recommended setting up of a dedicated e-market for different goods & services procured or sold by Government/PSUs.