MSME Loan Schemes Available In Telangana

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Telangana, one of India’s youngest states, has become a popular destination for MSMEs due to its business-friendly regulations and welcoming environment. MSMEs have played an important part in the state’s economic development by contributing to growth and creating job opportunities. MSMEs, like any other industry, confront their own set of obstacles, including access to capital. To solve this issue, the Telangana government has launched several MSME lending schemes and financial aid initiatives to help the MSME sector. These programs seek to stimulate entrepreneurship, industrial growth, and simple access to credit for MSMEs. This article will go over the various MSME loan packages available in Telangana and how they might assist businesses.

1. T-PRIDE

TS-PRIDE (Telangana State Program for Rapid Incubation of Dalit Entrepreneurs) is a Telangana government project to promote entrepreneurship among Dalits in the state. The plans provide financial aid and incentives to promote economic development and empower these communities. This initiative will allocate land to SC/ST entrepreneurs in proportion to their population in the state. The following are some of its advantages.

Amount of loanRs.10 Lakhs – Rs.50 Lakhs
Subsidy on investments15% to 35% depending on the nature of the business
Interest rates3%-9%
CategorySC/ST
GenderMale/Female

2. Telangana State Minorities Finance Corporation (TSMFC) Bank Linked Subsidy Scheme

For the purpose of establishing and growing MSMEs, minority residents of Telangana State are eligible for concessional subsidized loans with bank linkage through the Telangana State Minorities Finance Corporation (TSMFC) Bank Linked Subsidy Scheme. The Telangana government offers one of the best MSME financing programs for the minority population with this one. The TSMFC’s financial support in the form of subsidies would be contingent to the banks’ credit component. Here are a few advantages of it:

Category:Minority Community
Subsidy on investments80% up to Rs.80,000/- or 70% up to Rs.1.40 lakh, based on unit cost.
Age range21–55 years.
Annual Income Maximum MonthRs.2,00,000.
GenderMale/Female

MSME Loan schemes available in Telangana

3. T-IDEA

T-IDEA stands for the “Telangana State Industrial Development and Entrepreneur Advancement” incentive program. This strategy is designed specifically for general category enterprises. This initiative offers a 10% investment subsidy on fixed capital investments up to Rs. 10.00 lakhs for MSEs controlled completely by women. Here are some of its advantages

Amount of loanUp to Rs.20 Lakhs
Subsidy on investmentsof 15% up to Rs.20 lakh is available for general categories with
Interest rates3%-9%
GenderMale/Female

4. 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:

Amount of loanno upper limit.
Subsidy on investments15% of loan amount.
Annual guarantee fee: 0.75-1.0%.
Loan tenure Flexible tenurebased on the repayment capacity

5. Mahila Udyam Nidhi Scheme

Women entrepreneurs who wish to launch new firms or grow their current ones can receive financial support under the Mahila Udyam Nidhi Scheme. Empowering women entrepreneurs throughout the state is the scheme’s primary goal. Please be aware that Punjab National Bank is now the sole place where these offers are available. Among its attributes are the following:

Maximum loan amount ofRs.10 Lakhs
Annual interest on loans5%
loan
Qualifications for
5-7 years
Education:Tenth grade
Gender and Agewomen between the ages of 18 and 55

6. Pradhan Mantri MUDRA Yojana (PMMY)

Launched in 2015, the Pradhan Mantri MUDRA Yojana (PMMY) is a prominent central government program. It offers microloans to small, non-farm, non-corporate businesses in both rural and urban locations.

Depending on the phases of a company’s growth and its finance requirements, PMMY offers loans in three categories:

Shishu Mudra:INR 50,000 and more
Kishore MudraRs. 50,001 to Rs. 5 lakh
Tarun MudraRs. 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

7. Prime Minister’s Employment Generation Programme (PMEGP)

Aiming to create jobs through the establishment of micro-enterprises, the Ministry of Micro, Small, and Medium Enterprises (MSME) oversees the PMEGP, a credit-linked subsidy program. This program’s primary beneficiaries are women, aspiring and established craftspeople, and young people without jobs. Some of its primary characteristics are as follows:

Age: Minimumage of 18.
Interest rates vary between11% 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%.

8. 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:

Amount of loanUp to 5 crore.
Collateral is not required. Loan tenure:5-10 years.
Annual Guarantee Fee:0.37%-1.35%.
AgeMinimum age is18
GenderMale/Female

9. 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.

10. 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:

Maximum loan term of ten years
The loan amount ranges from :10 lakhs to 25 lakhs.
Interest rates based on the needs of businesses
Type of loanTerm loans and quasi-equity loans