Government schemes to provide security, technology support for Indian MSMEs
The Government of India developed the concept of Micro, Small, and Medium Enterprises (MSME), which is controlled by the Ministry of MSME and classifies businesses that are involved in the manufacture, production, preservation, or processing of commodities and goods. For the benefit of these MSMEs, the Indian government has implemented a number of initiatives. However, many MSME business owners are unaware of these schemes and consequently miss out on taking use of them.
There are various advantages to government schemes for MSMEs that business owner can take advantage of. The following are some of the government schemes advantages:
- The government schemes provide a sense of security to the entrepreneurs
- Some schemes provide financial security to businesses and individuals
- Certain schemes provide technological support and guidance to individuals
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Overall, government schemes assist individuals and entrepreneurs in improving their financial situation. However, due to a lack of knowledge about the numerous government schemes, many firms miss out on taking benefit of these schemes developed specifically for them.
MSME – Samadhan (Delayed Payment Monitoring System)
The MSME – Samadhan (Delayed Payment Monitoring System) is a platform designed by the Office of DC (MSME), Ministry of Micro, Small and Medium Enterprises (MSME), where Micro and Small Enterprises (MSEs) can submit applications for delayed payments online.
Digital MSME Scheme
The Digital MSME is a government scheme aimed at fostering information and communication technology (ICT) in the MSME sector by incorporating ICT tools and applications into MSMEs’ production and business process.
SAFE Plus (SIDBI)
The SAFE (SIDBI Assistance to Facilitate Emergency) Plus Scheme was created to help MSEs meet their operating capital needs in response to government orders to combat the COVID-19 virus. The loan amount sanctioned under the scheme is up to Rs 100 lakh, with an annual interest rate of 5%.
ECLGS or Emergency Credit Line Guarantee Scheme
The Government of India launched the ECLGS, or Emergency Credit Line Guarantee Scheme, as an unique scheme in response to the COVID-19 issue. In light of COVID-19, the scheme aims to offer banks and NBFCs with 100 percent guarantee coverage, allowing them to extend emergency credit facilities to businesses and MSMEs to satisfy their additional term loan or additional working capital requirements.
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Secured Business Loan for MSME – SIDBI
SIDBI is a major financial organisation that supports, develops, and finances micro and small businesses through a variety of schemes.
Secured Business Loan, or SBL, is one such scheme that was created to give speedier lending to MSMEs, particularly those in the manufacturing and service sectors. Depending on the strength of the collateral security and the MSME’s repayment capabilities, this government scheme for MSMEs provides financial help for business-related expenses (scheduled or unanticipated).
PMEGP Scheme
The Prime Minister Employment Generation Programme, or PMEGP, is an Indian government credit-linked subsidy scheme. The purpose of introducing the Scheme is to encourage the creation of jobs through the construction of micro-enterprises in both rural and urban regions.
These are seven schemes created by the government or government agencies with MSMEs in mind, with the goal of improving and growing the small business sector. These schemes can help a variety of small businesses.