Government Assistance to Micro, Small and Medium Enterprises (MSMEs) Financial and Promotional

Rs.Definition of MSMEs Type Micro Small Medium Mfg.0 cr.5.25 lakh to Rs. to Rs.2. Service Enterprise Up to Rs.0 cr.10 lakh to Rs. to Rs.0 cr.10.5.2.5.0 cr.0 cr.Enterprise Up to Rs. Rs.0 cr.10 lakh Rs. (Values indicate investment in plant & machinery) .25 lakh Rs.

Thrust Areas for Promotion of MSMEs • Adequate and Timely Credit (Term loans and Working Capital) • Modernization & Technological Up gradation • Integrated Infrastructure • Quality Improvement • Market Promotion • Export Promotion • Entrepreneurship Development & Management Development • Capacity Building .

Small and Medium Industries formed in 1999 for policy formulation and implementation • National Board for MSMEs – Representatives from Ministry. etc.Apex Organizations for MSMEs • Separate Ministry for Micro. Industry Associations. . Financial Institutions.

etc. NIESBD. (SVCL) • SME Rating Agency of India (SMERA) . Quality Promotion. • Has 10 other Institutes under it for Training and Development in Marketing. Product Testing. Designing. • National Small Industries Corporation (NSIC) • National Entrepreneurship Development Institutes (EDI. IIE) • Small Industries Development Bank of India • SIDBI Venture Capital Ltd. Financing. Guarantees. NISIET.National Level Organisations for Support to MSMEs • Small Industries Development Organisation (SIDO). Incubation. Technology Up gradation.

National Manufacturing Competitiveness Program (NMCP) of SIDO • Marketing Support Assistance to MSMEs • Support for Entrepreneurial and Managerial Development (Incubators) • Quality Mgt. Standards and Quality Tools • National Campaign for Investment in Intellectual Property Rights (IPRs) • Mini Tool Rooms with Foreign collaborations • Others being developed .

Business skills Development. Of New Clusters and Infrastructure in Existing ones. Common facilities. etc. Project/Product Selection. • Investment and Training in IPRs • MSE Cluster Development Program-Finance for Dev. Technology Identification. Opportunity Guidance. Cost Sharing on Utilities. Marketing.Schemes for New and Existing Enterprises SIDO • Entrepreneurial & Management Development Incubators. etc. Commercial Aspects. • Credit Linked Capital Subsidy Scheme – For Technology Up gradation .

. Stores and Central Govt.Schemes for New and Existing Enterprises SIDO • Credit Guarantee for MSEs by CGTMSE • Purchase & Price Preference Scheme for MSMEs for Govt.Participation in International Exhibitions/Fairs. Study Tours. etc. Undertakings • Market Development Assistance Scheme for Export Promotion . Trade Delegations. Bar Coding Certification.

IT solutions. • Bank Credit Facilitation Scheme. etc.0 lakh • Bills Discounting Scheme . Hand tools.Preference to Credit Rated Companies • Term Loan Scheme-For Machinery & Equipment Maximum limit Rs.5.Schemes for New and Existing Enterprises NSIC • Marketing Assistance Scheme. Leather goods. Consortia Marketing • Exports – Recognised Export House. SSI Projects.International and Domestic Exhibitions and Fairs.Exports of Handicrafts.Term Loan & Working Capital .

Schemes for New and Existing Enterprises NSIC • Raw Material Assistance Scheme – 90 days credit. bulk purchases. cash discounts • Financial Support for Credit Rating • Technical Support and Technology Transfers Technical Service Centres. Technology Transfer Centres • Software Technology Parks Scheme for 100% Exports of Software • NSIC Training-cum-Incubation Centres • Infomediary Services • Techmart Exhibition – Annual International Tech Fair .

credit rating. policy and regulatory issues and promotion of market oriented business development services for the sector. structuring of innovative products. Department for International Development (DFID) UK. KfW Germany and GTZ Germany are the international partners in the Project • Project is aimed at making SME lending an attractive and viable financing option & facilitate increased turnover and employment in the sector. • Technical Assistance given for strengthening credit information system. • There are three main components of the Project • Credit Facility • Risk Sharing Facility • Technical Assistance .SME Financing and Development Project (SMEFDP) of SIDBI • World Bank-led multi agency / multi activity Project on Financing and Development of SMEs • IBRD. capacity building of the participating banks. credit scoring.

& Bills Discounting • Guarantee Scheme for SSIs and Service Sector Units • SME IT Loans • Refinance Scheme through Banks and SFCs/SIDCs • Technology Up gradation. ISO Certification. Cap. etc. Wkg.Schemes for New & Existing Enterprises Small Industries Development Bank of India-SIDBI • Direct Credit Scheme – Small and Medium Sectors • Marketing Assistance Scheme . . Composite Loan. Single Window.Term Loans • Vendor Development – Term loans. Small Road Transport.

SMERA • Venture Capital – Software & IT .PCFC.Schemes for New & Existing Enterprises SIDBI • International Finance. Forex Term Loans.Guarantee by CGTMSE • Credit Linked Capital Subsidy Scheme • Risk Capital • Credit Rating Services . etc. PSCFC. Forward Contracts. Letters of Credit. • Marketing Assistance for Women-Indirectly through Corporates/Co-operatives/NGOs for market promotion activities • Collateral Free Loans.

tourism related activities iii) Medical practitioners are eligible for loan for acquiring electro medical and other equipment for professional use iv) Qualified professionals in management. architecture. accountancy etc. transportation ii) Services like nursing homes.0 cr For fixed assets like land. preservation. engineering. processing. desiring to undertake expansion of their professional practice/consultancy ventures v) Other service activities declared as eligible under the MSME Act .Maharashtra State Financial Corporation-MSFC Schemes for New & Existing Enterprises Term Loan assistance to medium & small enterprises Loan limit. Rs. assembling. Expansion.Diversification. hotels.5. Technology development. servicing. plant & machinery. building. restaurants. Enlarging product mix/product range. Quality improvement including ISO 9000 series Certifications Eligible activities i) Industrial activities such as manufacturing.

Small scale Industrial units should have SSI registration while Service enterprises should be registered with the appropriate authority . etc.Schemes for New Enterprises MSFC-Proposed Schemes Term Loan assistance for: – Commercial Complexes. Multiplexes. marriage Halls. Group Housing/Residential complex.

Credit Guarantee Fund Trust for Micro and Small enterprises (CGTMSE) • Credit available without collateral security • Available to micro and small enterprises for setting up new enterprises or expansion/ modernizations/ technological up gradation/ diversification of existing enterprises in the manufacturing & services excluding retail trade • Guarantee for Loans(Term loans and working capital) up to Rs.100 lakh per borrower • Credit given through Member Lending Institutions (MLIS) including banks and branches of SIDBI .

5.5% for loans up to Rs. at 80% for MSE’s owned/operated by women and MSEs in the north-eastern region • In case of default by the borrower. Small or Women entrepreneurs) and Size of Credit • Guarantee cover higher at 85% for Micro Enterprises with loans up to Rs.Features of the Credit Guarantee Scheme • CGTMSE stands guarantee up to 75%-85% of the loan amount to the MLI depending on the Status of the borrowing unit ( (Micro.0 lakh.5% and service fee of 0.5. CGTMSE pays off 75% / 80% of the loan amount of the lending MLI • Guarantee fee of 1.0 lakh .75% of the loan amount is payable by the borrower • Guarantee fee lower at 1% and service fee lower at 0.

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