Government schemes to help your dreams-2024
27 Jun 2024 5 mins Loans
The government has initiated numerous schemes and projects to help its citizens become self-sufficient and advance our nation. We are looking at some schemes below that aim to better the nation's various sectors. This just provides a glimpse of the vast opportunities available to you.
Pradhan Mantri Mudra Yojana- (PMMY)
Pradhan Mantri Mudra Yojana (PMMY) is a government scheme for non-corporate, non-farm small/micro enterprises. Loans up to 10 lakh are provided by various financial institutions, including banks and microfinance institutes, through the MUDRA scheme. Three loan categories are available, and applications can be made through the JanSamarth portal.
- Shihsu Category: loans up to Rs. 50,000
- Kishore Category: loans between Rs. 50,0001 and Rs. 5 lakhs
- Tarun Category: loans between Rs. 5,00,001 and Rs. 10 lakhs
Mudra loans are provided to trading, manufacturing, and service companies to develop and expand their businesses.
Credit Linked Capital Subsidy Scheme
Credit Linked Capital Subsidy Scheme (CLCSS) is for the technological upgradation in the MSME sector. It was launched in 2000 by the Government of India for incorporating technological advancements in 51 approved subsectors and products. The scheme provides an upfront capital subsidy of 15% on the technologies approved by the scheme guidelines. All MSEs, including tiny, khadi, village, and coir industrial units, with valid UAM (Udyog Aadhar Memorandum) numbers are eligible for this scheme. As per the last report of 2021-22, 1800 were beneficiaries of the scheme with Rs. 106.6286 crores released for the upgradation of plant and machinery. The application is through Primary Lending Institutes (PLIs), where MSEs obtain term loans. The application is approved in 2 stages at the Nodal office level and one at the DC-MSME level. Each approval will be held if any clarification is required and moved ahead if clarification is satisfactory.
MSME Loan Scheme in 59 Minutes
Loan processing has been a headache for every applicant. Checking and ensuring every document is there and waiting for confirmation takes time. SIDBI is trying to solve that with the MSME Loan scheme in 59 minutes. The loan process takes 59 minutes through a user-friendly website to apply for loans and digital approval for amounts up to Rs. 5 crores. With one application, you have 21+ banks and NBFCs at your disposal to select the best-suited offer to drive your business to higher heights.
Deen Dayal Antyodaya Yojana- National Rural Livelihoods Missions (DAY-NRLM)
The DAY-NRLM program is the flagship program of the Ministry of Rural Development (MoRD) aimed at uplifting the people, especially women, who are in rural poverty. The mission creates an environment that mobilizes poor rural households to self-help groups and supports them. The SHGs should be active for at least the last 6 months and have regular Panchasutras meetings to collect their savings, loans, repayments, and other agendas. The aim is to make financial and livelihood services accessible for poverty-stricken households through these SHGs.
In the identified 250 backward villages, all women SHGs will be eligible for bank credit up to 3 lakhs at a subvented interest of 7%, which can be reduced to 4% by maintaining prompt repayments.
The remaining districts' SHGs are eligible for loans under the normal lending rate. Subvention, provided by the State Government, will be to the extent of the difference between the lending rate and 7%.
Another bonus is that no margins or collateral would be charged up to Rs. 10 lakh limit to the SHGs.
Central Sector Interest Subsidy (CSIS)
Central Sector Interest Subsidy is an initiative by the government so that no student is denied the opportunity to pursue higher education due to their economic conditions. The pursued professional/ technical courses must be accredited by NAAC, NBA, CFTI, or regulatory-approved institutions in India. The amount from the scheme will be 10 lakhs irrespective of the sanctioned loan amount. Another good thing about the scheme is that it is provided for a period of moratorium after completion of the course so that students have breathing space to find a job.
This scheme aims to increase the number of technically and professionally qualified citizens in the country.
New Swarnima for Women
As part of the schemes for women's empowerment and pushing the nation forward, the government introduced the New Swarnima Scheme for Women inculcating the spirit of independence among women of backward classes. Women of backward classes with family incomes less than Rs. 3 Lakhs are eligible for the scheme. The scheme provides eligible women with loans of a maximum of Rs. 2 lakhs at 5% interest.
Another attractive feature is that the loan can be repaid for eight years including a moratorium period.
The government has many more schemes and missions to help individuals achieve their dreams. Being aware of your requirements and these schemes can permanently relieve your burden. Since most banks are responsible for acting as nodes for some schemes, the availability of digital information makes your dreams closer.
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Author - Abhishek Sonawane
Abhishek Sonawane, an MBA graduate from the prestigious Indian Institute of Management Visakhapatnam(IIMV), brings over ten years of experience in the finance domain. His extensive background includes various roles in financial management and strategy, providing him with a comprehensive understanding of the financial landscape. Abhishek’s expertise and dedication to financial education make him an authoritative voice in personal finance, helping readers make informed financial decisions.