2 weeks Ago
To boost entrepreneurship and strengthen the backbone of India’s economy, the government has launched several schemes targeted at startups and Micro, Small, and Medium Enterprises (MSMEs). These initiatives are meant to provide much-needed financial aid, mentoring, infrastructure, and training support to both emerging and established business ventures. This scheme supports the early stages of a startup’s journey by offering funding for tasks like building prototypes, conducting market trials, and validating ideas.
The aim is to help entrepreneurs cross the initial hurdles that come with limited access to capital. Under this initiative, small business owners can apply for loans without needing to provide any collateral. These loans are disbursed through banks and micro-financing institutions under three categories: Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh).
This is a credit-linked subsidy scheme that encourages people, particularly in rural and semi-urban areas, to start their own businesses. The program also aims to create jobs by financially supporting self-employment projects. Designed specifically to promote inclusivity in entrepreneurship, this scheme provides loans to Scheduled Castes, Scheduled Tribes, and women entrepreneurs.
It helps them start businesses in sectors like manufacturing, trading, and services with easier access to funding and handholding support. For many small businesses, securing loans without collateral is a challenge. This scheme steps in to offer a guarantee to banks, making it easier for them to lend to MSMEs.
It helps promote credit flow to deserving businesses that lack strong financial backing. Various financial institutions, including the MUDRA Bank, offer targeted loan schemes to MSMEs. These schemes are intended to address working capital needs, help with equipment purchases, and support business expansion.
Additional Initiatives Supporting Entrepreneurs Must Read: Supreme Court Gives Strong Warning To Telangana Government, Pererserve Greenland Or Go To Jail.
