A

Micro Project Report

On
“Government Loan Scheme For Business Startup”

Submitted in partial fulfilment of requirement for the award of

Diploma in Civil Engineering
offered by Maharashtra State Board of Technical Education, Mumbai

Submitted by
Anubhav Pancheshwar

Under Guidance of
Mr. P. G. Sawarkar
Assistant Professor, CE Dept.

Department of Civil Engineering

G.H. Raisoni Institute of Engineering & Technology, Nagpur – 440016
Academic Session 2023-24

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 G. H. RAISONI INSTITUTE OF ENGINEERING &
TECHNOLOGY, NAGPUR

CERTIFICATE
This is to certify that the project report on “Government Loan Scheme For Business
Startup” Submitted by Anubhav Pancheshwar students of Sixth Sem, Civil Engineering
Department in satisfactory manner for the partial fulfilment of the requirement of “Diploma
of Civil Engineering” offered by Maharashtra State Board of Technical Education, Mumbai
for Academic Year 2023-24.

It is an original work carried under the supervision and guidance of Mr. P. G.

Sawarkar and has undergone the requisite duration of the practical as prescribed by the
Maharashtra State Board of Technical Education, Mumbai, for the project work.

The said work has been assessed by me and I am satisfied that the same is up to standard
envisaged for level of course and that the said work is presented to external examiner.

Mr. P. G. Sawarkar Dr. N. U. Thakare

Subject Teacher HOD, CE Dept.

Dr. G. N. Akhade
(Dean, Poly)

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 DECLARATION

We, the student of Sixth Semester Diploma in Civil Engineering submit the project
work as prescribed by the Maharashtra State Board of Technical Education, Mumbai, for the
subject Project. The micro project report has been prepared by our own skill and study for
Academic Session 2023-24 as per guidance of Mr. P. G. Sawarkar.

And that we have not copied for any appreciable part from any other literature
contravention of academic thesis.

Place: Nagpur
Date:

PROJECTEES:
1) Anubhav Pancheshwar

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 ACKNOWLEDGEMENT

It is clearly being matter of pride for us to submit this micro project report on
“Government Loan Scheme For Business Startup” for which we work very hard throughout
the year as a single unit to get satisfactory result in the end.

At the completion of this project, we take this opportunity to express our gratitude
towards our guide Mr. P. G. Sawarkar. He guided us to every stage of the present work and
encourages us in the moments of anxiety. His guidance will always be priceless.

We are also thankful to Dr. N. U. Thakare, HOD, CE Department who insisted us to

go for a project which give us explore to the puller advancement. His suggestions were found
to be fruitful at the end of project.

Our special thanks go to the staff members from the Civil Engg. Department who
helped us the topic related to their subjects respectively.

Our sincere thanks to Dean, GHRIET (Poly), Nagpur without his encouragement our
project would has been incomplete.

Lastly out heartily thanks to our colleges and friends who appreciated and encouraged
us in our project and we are thankful to all those are directly and indirectly helped us in the
completion of our project.

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Introduction

These startup schemes have been introduced over a period of time and many of these were
introduced before the launch of Startup India plan. India’s first five-year plan government
started various schemes for poverty reduction programmer. Because of the government
schemes poverty ratio of India are reduced. Government spent so much money for below
poverty line families but government does not achieve the expected target. Poverty exists not
only in India but its presence is worldwide. Poverty is focused as a hurdle into development.
Poverty creates economics as well as social problems that harm the society at large. In order to
increase in self-employment, Integrated Rural Development Programmer, Janani Surekha
Yojana, Balika Samruthi Yojana, Allowance for presence in the schools for marginalised, SCs
and STs students, Suvarn Jayanti Gram Swayam Rojgar Yojana, Indira Awas Yojana, different
types of scheme are implemented by the Govt.

Objective

1. Identify your entrepreneurial traits.

2. Identify the business opportunities that suits you.
3. Develop comprehensive business plans.

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1. Types of Government Loan Scheme For Business Startup

 MSME Government business loan scheme.

 MUDRA business loan.
 Credit Guarantee fund government business loan scheme.
 National Small Industries Corporation Subsidy.
 Credit Link Capital Subsidy Scheme.
 PSB Loan

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 MSME Government Business loan scheme:
The Indian Government launched the MSME business loan scheme as a working capital
loan. As an MSME, you can get a loan sanction of up to Rs.1 crore within just 59 minutes.
The best part is you get this loan at 8% rate of interest, keeping the repayment easy on your
pocket. A reservation of 3% is available for women entrepreneurs, so as to offer a quick
sanction to the increasing number of women helming their own business today.

When applying for the loan, follow these basic steps:

 Enter your business’s GST Identification Number
 Upload the income tax returns for your business in XML format
 Upload the bank statements of your business account for the last six months in PDF
format.
 Enter the director/owner’s details for your business. This will include all details related to
personal, educational, and ownership criteria.
 Submit the application to enjoy an on-principle sanction within 59 minutes!

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 MUDRA business loan
Established by the current government, Micro Units Development and Refinance Agency
(MUDRA) has envisioned the idea of ‘funding the unfunded’ and put it into action with a
funding scheme. Small business entities and start-ups are given financial support in the
form of low-cost credit. MUDRA Loans are financed through public and private sector
banks, co-operative societies, small banks, scheduled commercial banks, and rural banks.
Broadly, any MSME operating in the manufacturing, trading and services sector is eligible
for the MUDRA loans. Your firm can avail funds via the government business loan scheme
under three subheads.
 Sishu Loans up to Rs.50,000
 Kishor Loans up to Rs.5,00,000
 Tarun Loans up to Rs.10,00,000

facilitate easy funding, the government has recently introduced the MUDRA Card. This
innovative product provides a working capital facility as a cash credit arrangement. This
card is given to you as a debit card against your MUDRA loan account. Based on your
sanction, you can withdraw funds from your MUDRA loan account multiple times. Until
and unless you use a portion of the sanction, you will not be charged interest on it. You
can use your MUDRA card for POS purchases or to withdraw cash from any ATM across
the country.

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 Credit guarantee fund government business loan scheme:
CGTMSE has been in action for 18 years now. Since its inception, the Credit Guarantee
Fund Trust for Micro and Small Enterprises has been facilitating collateral-free loans
for MSEs. Any scheduled commercial bank and regional rural bank can become a part
of the scheme by empaneling itself as a lending authority. The agency sanctions loans
to eligible Micro and Small Enterprises basis their credit standing via the lending
agencies in question.
The scheme provides working capital loans up to Rs.10 lakh and has provisions for
bigger sanctions as well. However, to get approval for an amount exceeding Rs.10 lakh,
you will need to mortgage your business assets and land.

 National Small Industries Corporation Subsidy:

Established in 1955, NSIC offers MSMEs two kinds of funding benefits: raw material
assistance and marketing assistance. Any business qualifying as a micro and small
enterprise having EM Part-II (Optional)/ Udyog Aadhaar Memorandum (UAM) is
eligible to register for this government business loan scheme under its Single Point
Registration Scheme (SPRS).
Once you qualify, you can opt for the raw material assistance scheme, where funding
for both indigenous and imported raw material is covered. Under the marketing support,
you can avail funds and use it to enhance your competitiveness and the market value of
your offerings. The NSIC also overlooks the functioning of an MSME and supports it
in its endeavor to enrich production and quality.

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 Credit Link Capital Subsidy Scheme:
This government business loan scheme funds technological upgradations. Under the varied
facets of the scheme, you can access finance to enhance your technology and equipment.
You can use the funds from your sanction to undertake a revamp related to numerous
processes for your business, like supply chain manufacturing, marketing, and supply chain.
Through this scheme, the government plans to reduce the production cost borne for creating
and providing goods and services by small and medium enterprises. This will pave the way
for a more competitive local and international market ecosystem.
Under this scheme, you can get an upfront 15% capital subsidy for your business. However,
the maximum amount you can avail as subsidy is capped at Rs.15 lakh. In order to be
eligible for a loan under this scheme, you need to apply as a sole proprietorship business,
partnership firm, and co- operative or private and public limited company.

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 PSB Loans:
On Nov 5, 2018, our Prime Minister, unveiled a dedicated digital platform to enable loans
of up to Rs. 5 crore in just 59 minutes. The government launched this business loan scheme
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 8.5% 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
Collateral-free: To avail the loan, collateral is not mandatory as the online portal is directly
linked to the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
scheme.

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2. REQUIRD DOCUMENT & ELIGIBILITY

 Documents Required to Government Loan Schemes:

The documents required for these government schemes may vary from one scheme to
another. a few common documents:

 Passport-sized photographs.
 Business plan.
 Identity, Age, Address and Income Proofs.
 GST Identification number.
 Details of income tax paid over the last 3 to 5 years.
 Bank statements of last 6 months.
 Business address proof.
 ITR returns for last 2 years.
 Details of the type of loan that you want.
 List of company Directors or partners of the company/partnership firm.
 E-KYC: All the documents that the applicant would use to apply for E-KYC are
needed here, as well.

 Government Business Loans: 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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 Government loans are offered to individuals, start-up enterprises, sole proprietorship, and
partnership firms, business owners, SMEs, MSMEs, private limited companies, large
enterprises, etc. The minimum age criterion to apply for a government business loan is 18
years. For the existing businesses the minimum business existence to apply for a loan is 2
years. Minimum credit score to be above 650 required by loan schemes to sanction loan.

 Steps to Register with the Loan Schemes:

Step 1: Go to the desired bank’s official online portal associated with the scheme
Step 2: Register on the portal and log in through the One-Time Password (OTP)
authentication
Step 3: Agree to the terms and conditions of the Government loan scheme
Step 4: Enter your financial credentials and other information required
Step 5: Proceed further and continue with filling the forms and uploading the required
documents

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 CONCLUSION
There are small business grants are awarded to help launch a start up or new business, with
the aim to generate jobs and stimulate the economy. To be successful in sustainable
business practices often requires entrepreneurship and innovation. This chapter provides an
overview of entrepreneurship and innovation as it relates to sustainable business. The
discussion is most relevant to sustainable businesses focused on offering new products and
services in response to societal concerns. The importance of entrepreneurship and
innovation also applies to companies that change how they produce products and services.
The latter companies can use innovative practices and entrepreneurship to establish their
brand name and to be market leaders in doing things that create shared value for society
and their companies and also, over time, contribute to changes in practices in their industry.

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