Unsecured Debt Capital
What is MSME Funding?
MSME loans are unsecured loans offered by several financial institutions to help entrepreneurs meet various business-related expenses. As per the Indian government and RBI, these loans are for certain business enterprises that fall under these categories: Manufacturing or trader or service provider.
Investment : Less than Rs. 1 crore
Turnover : Less than Rs. 5 crore
Investment : Less than Rs. 10 crore
Turnover : Less than Rs. 50 crore
Investment : Less than Rs. 20 crore
Turnover : Less than Rs. 100 crore
How does MSME Funding work?
Banks and other lending institutions offer term loans and working capital loans to MSMEs. The working capital loans are offered to MSMEs by banks to fulfil their daily cash requirements. The term loans are offered to MSMEs for capital expansion, capital expenditure or buying fixed assets. Apart from term loans and working capital loans, the banks or financial institutions have different loan schemes which they offer to MSMEs. The MSME loan schemes offered by different banks or financial institutions have different terms and conditions applicable.
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List of MSME Schemes funded / backed by GoI
Pradhan Mantri Mudra Yojna (PMMY)
Prime Minister’s Employment Generation Programme (PMEGP)
Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT MSE)
Credit Linked Capital Subsidy Scheme (CLCSS)
Equity Infusion for MSMEs through Fund of Funds
Credit Guarantee Scheme for Subordinate Debt (CGSSD)
The Fundraising Process We Follow
Benefits of MSME Funding
Collateral Free : the Indian government has made collateral-free financing available to all small and microbusiness sectors. This program offers financial assurances to micro and small businesses both new and old businesses are eligible to benefit from this program.
Access to International Trade : the Indian government funds business delegations to attend international trade shows, exhibitions, business meetings and seminars, and conferences held worldwide to share expertise. this international cooperation program enables exposure to industrialization’s more recent facet.
Reduced Rate of Interest : MSME-registered business benefits from a lower interest rate compared to other enterprises. for the MSME sector, priority credit has been maintained. since bank lending to MSMEs has reached a certain threshold, they benefit from cheap business loan interest rates. within the next two years, credit to micro and small firms must rise by 20%. a 10% annual growth rate in micro businesses is seen. the bank’s total lending must be distributed to the MSME sector at a minimum of 60%.
How We Offer
We Look For
Capital Destined to spur Growth
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