Odisha, a state renowned for its varied industrial landscape and spirit of entrepreneurship, provides a number of loan schemes and financial assistance programs to help MSMEs in the state expand and thrive. These programs are designed to support economic sustainability, encourage innovation, and meet the financial needs of small enterprises. Here are some significant credit programs that are offered to MSMEs in Odisha: 

Gramodyog Rozgar Yojana (GRY)

GRY is a credit scheme designed to encourage rural entrepreneurship in Odisha. The Khadi and Village Industries Commission (KVIC) implements the initiative through its state and district offices. The recipients of this initiative will receive financial help in the form of loans and grants with competitive interest rates and flexible repayment terms. The scheme also offers beneficiaries training and skill development programs to help them start and run profitable enterprises. Here are some of its main highlights:

1. Loan amount: ₹10,000 to ₹25 lakhs.
2. Interest rates: 4% for general beneficiaries, 2% for SC/ST, women, and differently-abled recipients.
3. Rural/Urban: Only available in rural areas.
4. Loan tenure: 7 years.
5. Gender: Male / Female

The Mukhyamantri Krushi Udyog Yojana Odisha is an MSME loan plan designed to help small and marginal farmers, entrepreneurs, and unemployed youth in the state of Odisha. The initiative offers loans for the purchase of land, equipment, and tools. The initiative also includes training for farmers and entrepreneurs to help them enhance their skills and knowledge. Here are some of its main highlights:

• Loan amount ranges from ₹10 lakh to ₹25 crore.
• Interest rates range from 4% to 9% annually.
• Rural/UrbanAvailable to both rural and urban residents.
• Loan tenure: 7 years.
• The margin money subsidy covers 25% of the project cost for SC/ST, women, and differently-abled beneficiaries.

PM Vishwakarma Scheme

Prime Minister Narendra Modi introduced this plan on September 17, 2023, on the occasion of Vishwakarma Jayanti. It offers technical training and financial help to traditional artists and craftspeople around the country. This initiative also offers an 8% interest subvention on the borrowing amount. Here are some of the significant highlights:

1. Loan amount: Up to ₹3 lakh.
2. Interest Rates: 5%.
3. Rural/Urban: Available to both rural and urban residents.
4. Loan tenure: 18-30 months.
5. Gender: Both Male and Female

Credit Linked Capital Subsidy Scheme (CLCSS)

In October 2000, the Government of India established the Credit Linked Capital Subsidy Scheme. This plan offers MSMEs with the necessary financing to upgrade their present technologies. Businesses can utilize this initiative to improve their existing plant and machinery and increase profits. This policy has no upper loan limit, however the subsidy is based solely on the loan amount sanctioned for P&M purchases. It has the following primary features:

1. Loan amount: no upper limit.
2. Subsidy: 15% of loan amount.
3. Annual guarantee fee: 0.75-1.0%.
4. Loan tenure: Flexible tenure based on the repayment capacity

Pradhan Mantri MUDRA Yojana (PMMY)

The Pradhan Mantri Mudra Yojana (PMMY) is a major central government plan that debuted in 2015. It makes microloans to non-corporate, non-farm micro, and small businesses in both rural and urban locations.

PMMY provides loans in three categories, based on the stage of business growth and finance requirements:

1. Shishu Mudra: Up to Rs. 50,000
2. Kishore Mudra: Rs. 50,001 to Rs. 5 lakh
3. Tarun Mudra: Rs. 5 lakh to Rs. 10 lakh

MUDRA loans are available through a variety of financial institutions, including public and private sector banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies (NBFCs).

Unlike other loan schemes, PMMY has no age, gender, duration, or interest rate requirements. All of these elements can vary depending on the loan category and the lending institution’s policies.

Prime Minister’s Employment Generation Programme (PMEGP)

PMEGP is a credit-linked subsidy system operated by the Ministry of Micro, Small, and Medium Enterprises (MSME) that intends to provide job possibilities through the establishment of micro-enterprises. The primary beneficiaries of this initiative are women, traditional and potential craftspeople, and unemployed youngsters. Here are some of its primary features:

1. Age: Minimum age of 18.
2. Interest rates: vary between 11% and 12% based on the bank.
3. Loan tenure: 3-7 years.
4. Education qualification: VIII standard pass.
5. Maximum loan amount: Rs. 1 Crore.
6. Subsidy: 15% to 35%.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

The CGTMSE is a cooperative project initiated in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India (SIDBI). It promotes financial institutions to offer collateral-free credit solutions to micro and small businesses. In the event of a default, the bank might submit a claim with CGTMSE. Here are some of its primary features:

1. Loan amount: Up to 5 crore.
2. Collateral is not required.
3. Loan tenure: 5-10 years.
4. Annual Guarantee Fee: 0.37%-1.35%.
5. Age: Minimum age is 18.

Stand-up India

Stand-up India is a central government project that began in 2016. It offers bank loans to women and Scheduled Castes (SCs) and Scheduled Tribes (STs) to start their own businesses. Existing firms are ineligible for loans under this scheme because they are intended for new businesses only. These loans are supplied by a variety of banks, including scheduled commercial banks, regional rural banks (RRBs), and small financing banks.

This initiative offers loans ranging from Rs 10 lakhs to Rs 1 crore. Interest rates and tenure vary depending on the type of the firm, as well as other considerations such as the lender’s credit policies.

SIDBI Make-in-India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE)

The national government established SMILE, a project to provide financial help to 25 identified sectors as part of the ‘Make in India’ strategy. This project encourages the ‘Make in India’ concept among entrepreneurs. SMILE provides ample finance for both the establishment of new firms and the expansion of existing ones. Here are some of its primary features:

1. Maximum loan tenure: 10 years.
2. Loan amount: ranges from Rs.10 lakh to Rs.25 lakhs.
3. Interest rates: vary based on corporate requirements.
4. Nature of the loan: Term and quasi-equity loans

These are some of the financing packages offered to MSMEs in Odisha. Each program has its own eligibility criteria, and MSMEs can select the one that best meets their needs. MSMEs can meet their financial demands while also contributing to economic progress by taking advantage of these incentives.