WEN Knowledge series

Starting a business requires entrepreneurs to work hard, be dedicated and passionate about realising their business dreams and on this entrepreneurial journey entrepreneurs can do with all the assistance that they can get. The Government of India has a number of beneficial schemes for Micro, Small and Medium Enterprises to help them at every step on their journey to bringing their entrepreneurial dreams to fruition. However, often business owners are unaware of these government schemes for MSMEs which can help their businesses tremendously, whether in terms of financial assistance or any other guidance.

Udayam Registration

Udyam Registration, also called MSME Registration is a government registration for MSMEs providing them with a unique identity number and recognition certificate. It helps in getting updated government schemes, training program and government tenders. This registration process is fully online, free of cost, paperless and based on self-declaration.

1. Credit Linked Capital Subsidy Scheme

A number of Micro and Small Enterprises (MSEs), such as tiny units, khadi units, village and industrial units, coir industrial units, etc., need a technology up-gradation in terms of new machinery, modern equipment and techniques. The Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation helps these MSEs to embrace technology and progress by offering them an upfront subsidy of 15%.

2. Credit Guarantee Scheme for Subordinate Debt

The Credit Guarantee Scheme for Subordinate Debt (CGSSD) is a scheme launched by the Government to provide support to the promoters of MSMEs which have turned into Non-Performing Assets (NPAs) as of 30th April 2020 by providing a certain amount as equity for the MSME units to thrive. This Government scheme for MSME will help businesses revive themselves and function again.

3. PM Formalisation of Micro Food Processing Enterprises Scheme

The Ministry of Food Processing Industries (MoFPI), in partnership with the States, has launched an all India centrally sponsored “PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme)” for providing financial, technical and business support for the upgradation of existing micro food processing enterprises.

4. Stand Up India

This scheme was introduced to focus on strengthening the minorities, such as scheduled castes, scheduled tribes, and women. The objective of the stand-up India schemes to facilitate bank loans between 10 lakhs and 1 crore for setting up a green field project. Under this scheme entrepreneurs can enjoy 18 months of moratorium with 7 years repayment tenure.

5. PSB Loans in 59 minutes

If you are looking to meet your working capital requirements or take your business to newer heights, this website will help you raise funds - by getting you an in-principal business loan approval in less than 59 minutes. a one-of-its-kind loan facilitating platform, psb59 makes the whole process of procuring MSME loans up to ₹5 crores easy, quick and convenient. In this site you get to choose the best-suited, low-interest, flexible tenure MSME loan by getting you the widest range of offers from over 21+ public, private sector banks and NBFCs - that too with a single application.

SIDBI – Udyami Mitra

Small Industries Development Bank of India (SIDBI) Udyami Mitra is a universal portal aimed at easing access to various financial and non-financial services to MSMEs.

With a view to enlarge its foot print in delivery of products and services in MSME eco-system, a series of digital delight initiatives involving various portals such as sidbi.in, sidbistartupmitra.in, standupmitra.in has been launched by SIDBI. SIDBI Udyamimitra [www.udyamimitra.in], happens to be a new addition as another interactive portal. It is an enabling platform which leverages IT architecture of Stand-Up Mitra portal and aims at instilling ease of access to MSMEs financial and non-financial service needs.

Trade Receivables Discounting System (TReDS)

Trade Receivables Discounting System (TReDS) is an initiative of Reserve Bank of India (RBI) to facilitate MSME receivable payments from Corporates.

The main objective of the TReDS platform is to address the critical needs of MSMEs. TReDS platform enables discounting of invoices/bills of exchange of MSME sellers against large corporates, including Government departments and public sector undertakings, through an auction mechanism to ensure prompt realization of trade receivables at competitive market rates. TReDS is the first attempt in India to introduce factoring without recourse to the seller and will help MSME sellers, not only in quick realization of receivables but also efficient price discovery.

GEM - Government e Marketplace

Government e Marketplace (GeM), facilitates online procurement of common use Goods & Services required by various Government Departments / Organisations / PSUs. GeM aims to enhance transparency, efficiency and speed in public procurement. It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users, achieve the best value for their money.

MSME Samadhaan – Delayed Payment Monitoring System

The ministry of MSME has launched a MSME delayed payment portal – MSME Samadhaan for empowering entrepreneurs across the country to directly register their cases relating to delayed payments. Entrepreneurs can file online application for the delayed payments using this portal and they can check the status of the filed application by using the same. As per this provision the defaulter is liable to pay compound interest.

Redressal Portal for MSME – CHAMPIONS.GOV.IN

This is a single window system for MSMEs, which aim at Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength. This is basically for making the smaller unites big by helping and handholding by solving the entrepreneurs problems and grievances.

Important websites to refer -

https://industry.kerala.gov.in
https://invest.kerala.gov.in
https://keralaemarket.com
https://msme.gov.in
https://www.udyamimitra.in
https://mofpi.nic.in
https://champions.gov.in
https://dipp.gov.in
https://www.makeinindia.com
https://www.psbloansin59minutes.com