Operating a business can only be easier when one has the funds to do so. But the challenging part is where to get the funds to service your business. This are the hassle business and micro startups have. A lot of people have ideas which they cannot implement due to lack of funds and capital. They end up being employees to some other company and losing the vision of a startup.
The India government has come to the rescue of many small scale business. The kind of business which don’t pick due to competition from other counterparts who have enough or more than enough money to invest. The government has started up schemes to fund and support this kind of individuals. They give small and medium enterprises who later refund the cash in installments thus not feeling the punch of the loans. Here we will discuss some of the loan scheme established by the government.
- Small industries development organization (SIDO)
This a scheme which holds and supports small scale industries. The scheme fill in the financial gap and supports in the following ways: First the scheme helps the government in advising about new business ideas for the citizens. They take assessment test on different businesses and learn how they can help the citizen start the enterprise. The scheme also have strong links with organizations who can train the medium and small scale entrepreneurs. The group provides funds and advice on business to invest in.
- The credit guarantee fund scheme for micro and small enterprise
Known as CGMSE is a government initiative which give collateral free credit to the Indian citizens who have small and medium business. The scheme was launched by the small industries development bank of India SIDBI. The scheme provides money and loans from RS 100 lakh it is a share of the government and the SIDBI in a ratio of 4:1.
- Credit link capital subsidy scheme for technology up gradation
This a unique scheme which helps in technology upgrading. The recent world has changed and need a lot of digital technology to move. The scheme helps small and medium business by providing funds of 15% which is RS 15 lakhs. The scheme doesn’t limit any one or group from applying for the loans.
- Small industries development bank of India SIDBI
A scheme established in 1990 and strong up to date. Has helped many small scale businesses. It is a government sponsored group which joins with other schemes to help the business owners.
- National small industries corporation limit NSIC
Launched in 1999 the scheme has seen so many small scale business flourish. They introduce and purchase machines which assist in the business startup. They provide materials needed for the business and teach new skills to the entrepreneurs.
- National bank for agriculture and rural development (NABARD)
This a scheme which helpsupport small scale agri-business. They provide financial and material, the scheme focuses more on the rural areas. This helps the famers and the village people to have a sense of belonging as they have some activities which will generate income.