At present, the corona epidemic is widespread all over the world. Most countries are opting for a full country lockdown to avoid the Kovid-19 outbreak. Corn, the containment has its challenges and problems. No country can have too long a lockout.
The economy of the affected country could collapse due to the lockdown. People can become unemployed and there can be a famine situation in the country. Also in confinement, the sector whose work continued to be carried out continuously is the mic, kid, and the average industry, ie the MSME industry.
The specialty of the MSME sector is that an even better products can be done at low cost and with limited resources. More people can be hired. If we talk about the total number of MSMEs in India, according to the annual report (2018-19) of the Ministry of MSMEs, there are 6.34 crore of micro, small and medium industries in the country. The number of people employed in these 6.34 crore MSMEs is over 11 crore. (These data are taken from the 2018-19 annual report published by the Ministry of MSMEs).
The importance of the microphone, little one, and medium industries in India can be understood from the fact that the MSME sector accounts for 30% of the country’s GDP. It holds 31.8% of GVA’s capital. 48% of the country’s exports come from this region. Which means that MSMEs have an important contribution To make the country economically prosperous.
However, the problems of MSMEs are not hidden from anyone. From time to time, the announcement of the closure of all MSMEs continues to make headlines. Now the government is trying to improve the condition of MSMEs. To improve the condition of MSMEs and create a new MSME, the Indian government announced the creation of a micro-finance institution. Let us understand in detail about this institution.
Apply for an MSME loan
What is A Microfinance organization?
A massive bundle of Rs. 30 thousand crores have announced by the central government to save MSMEs from the Corona crisis. In the emergency plan announced by the Minister of Finance Smt. Nirmala Sitharaman, it was said that the government would provide loans to MSMEs and street vendors. The lA loan will be provided to MSMEs through a loan package of Rs. 30 thousand crores.
For this, the government has formed a microfinance institution. This institution will review MSME loan applications and approve the loans. After that, MSME traders will get loans from banks, NBFCs, and other financial institutions. It should be noted that this lending institution will also consider as eligible MSMEs which have not repaid loans in the past or the loan amount has been converted to NPA – Non-profit asset.
Read also: MSMEs and Small Businesses – Digital Transformation for Growth
The business can be started by The Small Industries Program 2020
Funds have been released for the welfare of MSMEs already managed by central government. Alongside that, the loan program was launched for start the business. To start a new business, a loan program called Small Industries Scheme 2020 has been launched. Under this program, people who wish to do business will be able to obtain loans ranging from Rs 25 lakh to Rs 5 crore without a mortgage on the property.
Credit Guarantee Fund Trust set up by SIDBI for loans up to Rs 25 lakh for micro businesses, loans ranging from Rs 25 lakh to Rs 1 crore for small businesses and from Rs 1 crore to Rs 5 crore for medium-sized businesses will be provided.
Loan programs for MSME
It is the effort of the central government that the maximum number of industries should be established in the country. For this, the government is prepare for all levels. For the establishment and operation of the industry, loans are granted as financial assistance.
The online portal ‘Udyog Aadhaar‘was created for the registration of industries. The bureaucracy in registering industries has been almost completely abolished. Everything was done online. Loan programs have been launched for industries include Pradhan Mantri Mudra Yojana, Pradhan Mantri Rojgar Yojana, Prime Minister’s Job Creation Program, Micro and Small Business Credit Guarantee Fund Program, Credit Link Capital Grant Program, MSME, etc.
The Mudra Yojana emerged as a successful financial aid program for micro, small, and medium-sized industries. Pradhan Mantri The Mudra loan program was launched in 2015. Under this program, loans of up to Rs 10 lakh are granted to MSMEs in 3 categories without any mortgage.
Read also: Main challenges faced by MSMEs due to COVID
To increase business, ZipperTHEoan Get a business loan up to Rs 7.5 Lakh
A commercial loan of up to Rs 7.5 lakhs is granted to MSME traders by the country’s main non-bank financial company – NBFC ‘ZipReady‘in just 3 days * without obligation. We should inform you than the commercial loan of ZipReady is free after 6 months of prepayment charge.
here are the business loan eligibility of ZipReady:
- Companiesses must be over 2 years old.
- The company’s annual turnover is expected to be over Rs 10 lakh.
- Must have an ITR record for the company. The latest ITR filed should be over Rs 1.5 lakh.
- Ahthe domicile or place of business must be located in the name of the businessman Where the name of a blood related.