Assignment: 911
Assignment Aim: Compile the information from government agencies that
will help you set up a business enterprise.
Government schemes in India are designed to provide essential capital to
small businesses, startups, and entrepreneurs. These schemes help provide
funding at subsidized interest rates, thereby facilitating the establishment and
growth of new ventures. There are several government agencies that play a
key role in supporting businesses across various sectors. Below are some of
the most notable government schemes for business enterprises:
1) MUDRA – Micro Units Development and Refinance Agency
Overview:
MUDRA is a flagship initiative by the Government of India to provide financial
assistance to micro and small businesses. It helps businesses by offering
loans with no collateral requirements. It is applicable to businesses in
manufacturing, trading, and allied agricultural services.
Key Features:
● Shishu: Loans up to ₹50,000
● Kishor: Loans between ₹50,000 and ₹5 lakh
● Tarun: Loans above ₹5 lakh
Beneficiaries: Micro and small enterprises.
2) NABARD – National Bank for Agriculture and Rural Development
Overview:
NABARD primarily focuses on providing credit to agriculture and rural
industries. It works alongside the RBI to ensure that financial assistance
reaches rural areas. NABARD also offers schemes for food processing plants
and rural development.
Key Features:
● Dairy Entrepreneurship Development Scheme: Provides up to 90%
funding for dairy projects.
● Rural Development: Loans for rural businesses and agriculture.
Beneficiaries: Rural businesses, agriculture, food processing, and
cottage industries.
3) Credit Guarantee Scheme – CGTMSE (Credit Guarantee Fund Trust for
Micro and Small Enterprises)
Overview:
The CGTMSE scheme aims to provide collateral-free loans to micro and
small enterprises. This scheme helps startups and existing businesses to avail
loans at highly subsidized interest rates without needing to provide collateral.
Key Features:
● Provides up to ₹1 crore for working capital or term loans.
● No collateral is required.
● Works with SIDBI (Small Industries Development Bank of India).
Beneficiaries: Micro and small businesses, including startups.
4) Stand Up India Scheme
Overview:
Launched in 2016, this scheme focuses on providing loans to women
entrepreneurs and SC/ST communities. It is meant for Greenfield ventures
(new businesses in manufacturing, trading, and services).
Key Features:
● Loans range from ₹10 lakh to ₹1 crore.
● Loans are provided for Greenfield ventures.
● Mandatory for banks to lend to at least one woman entrepreneur and
one SC/ST entrepreneur per branch.
● The maximum repayment period is 7 years.
Beneficiaries: Women entrepreneurs and SC/ST communities.
5) NewGen IEDC – NewGen Innovation and Entrepreneurship
Development Centre
Overview:
NewGen IEDC offers a one-time non-recurring loan to startups in various
industries, including healthcare, IT, construction, textiles, and renewable
energy.
Key Features:
● Provides up to ₹25 lakh in funding for startup units.
● Applicable to various sectors like healthcare, chemicals, IT, and
renewable energy.
Beneficiaries: Startups in technology, healthcare, chemicals, and other
innovative sectors.
6) AIC – Atal Incubation Centres
Overview:
AICs are set up under the Atal Innovation Mission (AIM) and NITI Aayog to
foster innovation and entrepreneurship in India. They provide grant-in-aid to
startups and offer necessary infrastructure and mentoring support.
Key Features:
● Grants of up to ₹10 crore to each AIC.
● Grants are provided for a duration of up to 5 years.
● AICs support startups in diverse sectors like healthcare, aerospace, AI,
and agriculture.
Beneficiaries: Startups and businesses in sectors such as healthcare,
AI, renewable energy, agriculture, and more.
Conclusion:
The government of India offers a wide range of schemes through various
agencies to help individuals and businesses set up and grow their enterprises.
These schemes provide funding, infrastructure, and mentoring support to
startups in diverse sectors, helping them realize their business dreams and
contribute to the economy.
