Sikkim, located in the foothills of the Himalayas, is well-known for its picturesque beauty and tourism industry. However, the state government is also encouraging the development of Micro, Small, and Medium Enterprises (MSMEs) in the state. The central and state governments of Sikkim have launched different MSME loan schemes to give financial support and promote entrepreneurship. These initiatives meet the different needs of MSMEs, which range from start-ups to established enterprises wishing to expand.

In this article, we will look at the various financing schemes accessible to MSMEs in Sikkim. We will look at the qualifying requirements, perks, and features of each scheme. In addition, we will supply separate tables for each scheme that outline relevant details such as gender, qualification, age group, social category, industrial profile, rural/urban, and government affiliation. With this knowledge, MSMEs in Sikkim may make informed judgments and select the best financing scheme for their business requirements.

Youth Skilled Startup Scheme Sikkim

Taking the spirit of Atmanirbhar Bharat further, the Sikkim government has created the Youth Skilled Startup Scheme to encourage equitable entrepreneurial opportunities among Sikkim’s educated unemployed population. This is one of the greatest MSME loans available if you are from Sikkim. The initiative offers back-end bank loan subsidies of 50% for BPL and 35% for others on financially sound bankable projects. Here are some of its features:

• Age range:  18-40 Years
• Loan Duration Approximately 7 years
• The interest rates The bank’s lowest applicable rate that does not exceed base rate (MCLR) + 3% + tenor premium.
• Education Qualifications Residence:  Sikkim Minimum of a fifth grade pass

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 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:

• 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 organizations, including public and private sector banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies.

PMMY, unlike other loan schemes, does not have age, gender, tenure, or interest rate requirements. All of these elements can vary depending on the loan type 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 Businesses (CGTMSE).

CGTMSE is a joint initiative launched 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 encourages financial institutions to provide collateral-free credit schemes to micro and small enterprises. In case of any default, the bank can file a claim with CGTMSE. The following are some of its main features:

• Loan amount: Up to 5 crores
• No collateral required.
• Loan tenure is 5-10 years.
• Annual Guarantee fee: 0.37%-1.35%.
• Minimum age: 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 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 loanTerm and quasi-equity loans.