Assam is a state in northeastern India famous for its verdant forests, tea plantations, and rich culture. The state’s MSME industry is thriving and contributes significantly to economic growth. The Assam government has developed a number of credit packages to help the state’s MSMEs thrive. These schemes aim to provide financial aid and other incentives to entrepreneurs who want to start or expand their firms. The state has also launched many measures to promote entrepreneurship, such as incubation centres and skill development programs. In this blog, we’ll look at some of the MSME loan schemes available in Assam, as well as their eligibility requirements. Below is a list of the top MSME lending schemes available in Assam.

Sarothi – a startup in Assam

Sarothi is a start-up MSME financing initiative developed by the Assam government to promote the state’s start-up ecosystem. The scheme’s primary goal is to give financial assistance in the form of a loan with interest subvention through a selected bank that serves all of Assam. Here are some of its highlights:

• Loan amount: Up to 10 lakhs.
• Interest Subvention: 5% Interest Subvention
• Loan tenure is flexible and dependent on project requirements.
• Promoter’s Margin: 15% of the project cost.
• Beneficiaries to be targeted New Entrepreneurs in Assam

Chief Ministers: Atmanirbhar Asom Abhijan

The state government of Assam’s major program is the Chief Ministers Atmanirbhar Asom Abhijan. The government hopes to create jobs by establishing entrepreneurial units around the state through this program. A family may only have one member eligible to receive benefits under this system. Here are a few of its highlights:

Loan amount: Up to 5 lakhs.
Permanent resident of Assam.
Loan tenure: Up to 7 years.
Margin money: 10% of project cost Age: Over 28 and under 40 years

Credit-Linked Capital Subsidy Scheme (CLCSS)

The Government of India started the Credit Linked Capital Subsidy Scheme in October 2000. This plan gives MSMEs the funding they need to upgrade their present technologies. This strategy enables businesses to improve their existing plant and machinery while increasing profits. This policy has no maximum loan restriction, however the subsidy is based solely on the loan amount sanctioned for P&M purchases. The primary features are as follows:

• Loan amount: no upper limit.
• Subsidy: 15% of loan amount.
• Annual guarantee fee: 0.75-1.0%.
  Loan tenureFlexible tenure based on the repayment capacity

Pradhan Mantri Mudra Yojana (PMMY).

The Pradhan Mantri MUDRA Yojana (PMMY) is a flagship central government scheme launched in 2015. It provides micro-loans to non-corporate, non-farm micro and small enterprises in both rural and urban areas.

PMMY offers loans under three categories, depending on the stages of business growth and funding needs:

• Shishu Mudra: Up to Rs 50,000.
• Kishore Mudra: Rs. 50,001-Rs. 5 lakh
• 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:

• Age: Minimum age of 18.
  Interest rates vary between 11% and 12% based on the bank.
• Loan tenure: 3-7 years.
• Education qualification: VIII standard pass.
• Maximum loan amount: Rs. 1 Crore.
• 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. It promotes financial institutions to extend collateral-free lending to micro and small businesses. In the event of a default, the bank might submit a claim with the CGTMSE. The following are some of its primary characteristics:

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

Stand Up India

Stand-up India is a central government project that was implemented in 2016. It gives bank loans for women and Scheduled Castes (SCs) and Scheduled Tribes (STs) to start businesses. Existing firms are not eligible for loans under this scheme because they are intended for the establishment of new businesses. These loans are made available through a variety of banks, including scheduled commercial banks, regional rural banks (RRBs), and smaller finance 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 introduced SMILE, a project to provide financial help to 25 identified sectors under the ‘Make in India’ initiative. This program supports the ‘Make in India’ movement among entrepreneurs. SMILE provides ample cash for both the start-up and expansion of established businesses. The following are some of its primary characteristics:

• Maximum loan:  tenure of 10 years.
• Loan:  amount ranges from Rs.10 to Rs.25 lakhs.
• Interest rates:  vary depending on corporate needs.
• Nature of loan: Term and quasi-equity loans.

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:

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

Conclusion

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