EDP Pr-11 (CM6I - 92 Ankita Adam)

Practical 11 :
Compile the information from government agencies that will

help you to set up your business enterprise.
Introduction:
Small and medium-sized enterprises (SMEs) play a crucial role in
India's economic growth and development. However, many small
businesses struggle to access financing due to a lack of collateral or
a credit history. To address this issue, the Indian government and
various financial institutions have introduced several funding
schemes specifically designed to support SMEs.
Various Funding Schemes :
Here are some of the most popular funding schemes available for
small scale enterprises in India:
Credit Guarantee Fund Trust for Micro and Small Enterprises

(CGTMSE)
The CGTMSE is a loan guarantee scheme that provides collateral-
free loans up to Rs. 2 crore ($275,000) to micro and small enterprises.
The scheme covers up to 75% of the loan amount in case of default,
making it easier for SMEs to access credit from banks and financial
institutions.
Pradhan Mantri Mudra Yojana (PMMY)

The PMMY scheme provides loans up to Rs. 10 lakh ($14,000) to micro
and small enterprises through various financial institutions such as
banks, NBFCs, and microfinance institutions. The loans are
categorized into three segments: Shishu (up to Rs. 50,000), Kishore
(Rs. 50,000 to Rs. 5 lakh), and Tarun (Rs. 5 lakh to Rs. 10 lakh).
1
Stand-Up India Scheme
The Stand-Up India scheme is a government initiative that provides
loans up to Rs. 1 crore ($137,000) to women and SC/ST entrepreneurs
for setting up greenfield enterprises in manufacturing, services, or
trading sectors. The loan amount can be used for capital
expenditure or working capital requirements.
National Small Industries Corporation (NSIC) Subsidy

The NSIC subsidy scheme provides financial assistance to small
enterprises in the form of marketing support, raw material assistance,
and credit facilitation. Under the scheme, SMEs can access raw
material at a subsidized rate and also receive a subsidy on the cost
of procurement.
SIDBI Make in India Soft Loan Fund for MSMEs (SMILE)

The SMILE scheme is a soft loan fund for MSMEs introduced by the
Small Industries Development Bank of India (SIDBI). The scheme offers
loans up to Rs. 10 crore ($1.4 million) at an interest rate of 8-9% for
financing machinery and equipment. The loan is repayable over a
period of 7-10 years.
Technology Upgradation Fund Scheme (TUFS)

The TUFS scheme aims to promote the modernization and
upgradation of technology in the textile and jute industries. Under
the scheme, SMEs can avail of a capital subsidy up to 15% for
modernizing their existing machinery or setting up new units.
2
National Equity Fund (NEF)
The NEF scheme provides equity support to SMEs through a network
of state-level financial institutions. The scheme offers equity
participation up to 49% in SMEs with a minimum investment of Rs. 5
lakh ($6,800) and a maximum of Rs. 50 lakh ($68,000).
Scheme chosen for Digital Marketing small enterprise: MUDRA Loan
The MUDRA loan scheme was launched by the government of India

to provide financial assistance to micro and small enterprises. The
loan is provided by various financial institutions such as banks, NBFCs,
and MFIs. Under this scheme, loans of up to Rs. 10 lakhs are offered
to micro-enterprises engaged in non-farming activities, including
digital marketing.
Here are some key features of the MUDRA loan scheme:
Types of Loans: MUDRA loan offers three types of loans based on the
stage of the business - Shishu, Kishor, and Tarun. Shishu loan is for
businesses in the initial stage, Kishor loan is for businesses that have
established their operations, and Tarun loan is for businesses that
require funds for expansion.
Loan Amount: The loan amount offered under the MUDRA loan
scheme ranges from Rs. 50,000 to Rs. 10 lakhs, depending on the
stage of the business and the financial institution providing the loan.
Interest Rates: The interest rates for MUDRA loans are generally lower
than other types of loans. The interest rates vary from 9.75% to 11.50%
per annum.
Collateral: MUDRA loans are collateral-free, which means that the

borrower does not need to provide any security or guarantee to
avail of the loan.
3
Repayment: The repayment period for MUDRA loans ranges from 3
to 5 years, depending on the loan amount and the financial
institution providing the loan.
In conclusion, the MUDRA loan scheme is a suitable funding option

for a digital marketing small enterprise. The loan offers affordable
interest rates, flexible repayment options, and does not require
collateral. However, before applying for the loan, it is important to
carefully read and understand the terms and conditions, eligibility
criteria, and application process. The borrower should also prepare a
detailed business plan and financial projections to present to the
financial institution.
Conclusion
In conclusion, India offers a range of funding schemes to support
small scale enterprises. These schemes provide collateral-free loans,
loan guarantees, subsidies, and equity participation to promote
entrepreneurship and business growth. SMEs should evaluate their
business requirements and choose the funding scheme that best fits
their needs.
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Practical 11 :

Compile the information from government agencies that will

Credit Guarantee Fund Trust for Micro and Small Enterprises

Pradhan Mantri Mudra Yojana (PMMY)

National Small Industries Corporation (NSIC) Subsidy

SIDBI Make in India Soft Loan Fund for MSMEs (SMILE)

Technology Upgradation Fund Scheme (TUFS)

Scheme chosen for Digital Marketing small enterprise: MUDRA Loan

The MUDRA loan scheme was launched by the government of India

Here are some key features of the MUDRA loan scheme:

Collateral: MUDRA loans are collateral-free, which means that the

In conclusion, the MUDRA loan scheme is a suitable funding option

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