Subsidy consultants for msme

Micro, Small and Medium Enterprises (MSMEs)

1.Prime Minister’s Employment Generation Programme (PMEGP)


  To generate employment opportunities in rural and urban areas of the country through setting up of new self-employment projects/micro enterprises in non farm sector- Subsidy consultants for msme subsidy for msme

 provide continuous and sustainable employment to all segments of traditional and prospective artis an s and rural/urban unemployed dyouthi n the country,so as to help arrest migration of rural youth to urban areas.

 increase the wage- earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment

Eligibility/ Applicability

Any individual ,above 18 years of age can apply (For project costing above 10 lakh in manufacturing and 5 lakh in service sector, the applicant should have passed at least VIII standard).

Self Help Groups, Institutions registered under Societies Registration Act1860;Production Co-operative Societies and Charitable Trusts are all so eligible.

Nature of Assistance

The maximum cost of the project/unit eligible: Rs.25 lakhs in case of manufacturing sector and Rs.10 lakhs in case of business/service sector.

Subsidy under PMEGP (of project cost) / / General category 15% .(Urban), 25% (Rural) / Special Category (including SC/ST/OBC/Minorities/Women, Ex-servicemen,Physically handicapped, NER, Hill and Border areas, etc.):25% (Urban), 35% (Rural).

Second financial assistance upto Rs.1.00 crore available for existing and better performing PMEGP/MUDRA/REGP registered units for expanding /upgrading existing unit swith subsidy of 15% (20%inNER/

2. Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)


To facilitate technology to MSEs through institutional finance for  induction of well established and proven technologies in the specific and approved 51 sub-sector / products. Both upgradation projects (with or without expansion) and new projects are eligible.

Eligibility/ Applicability

Any Micro and Small Enterprise (MSE) having valid Udyam Registration and availing institutional credit to buy new Plant & Machinery approved under the scheme.

Special Benefits are applicable in case of SC/ST, Women ,NER/Hill States/ Aspirational Districts/LWE Districts .The subsidy shall be admissible for investment in acquisition /replacement of Plant &Machinery /equipment’s & Technology up-gradation of any kind (Coreplant & Machinery).Second hand & fabricated will not be eligible.

Nature of Assistance

Up front subsidy of 15% on institutional Credit upto Rs.1.0 Crore (i.e.subsidy cap of Rs.15.00 lakh) for identified sectors /sub sectors / technologies.

However, to be considered as eligible , for special benefits there is no restriction for identified sectors.

3. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)


The Credit Guarantee Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme.

The Ministry of Micro,Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), have established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Scheme for Micro and Small Enterprises


New as well as existing Micro & Small Enterprises. Guarantee coverage ranges from 85% (ForMicroEnterpriseuptoRs5lakh) to 75% (For others). 50% coverage is for Retail Activity

Nature of Assistance

The credit facilities which are eligible to be covered both for term loan sand/or working capital are collaterall free. Loan upto a limit of Rs.200 lakh is available for individual MSE on payment of guarantee fee to bank by the MSE

4. Interest Subvention Scheme


Encouraging both manufacturing and service enterprises to increase productivity and provide incentives to MSMEs for on-boarding on GST platform which helps in formalization of economy, while reducing the cost of credit.

Eligibility/ Applicability

 All MSMEs who have valid GSTN Number and registered on Udyam portal. Trading activities with KYC are also eligible.

Nature of Assistance

The interest relief will be calculated at two percentage points per annum (2%p.a.), on outstanding balance from time to time from the date of disbursal /drawl or the date of notification of this scheme ,which ever is later,on the incremental or fresh amount of working capital sanctioned or incremental or new term loan disbursed by eligible institutions.

5. Sub ordinate Debt for Stressed MSMEs


Sub ordinate debt will provide a substantial help in sustaining and reviving the MSMEs which have either become NPA or are on the brink of becoming NPA. Promoter(s) may in fuse this amount in MSME unit as equity and there by enhance the liquidity and maintain debt-equity ratio.

In a situation, where an out  right loan is difficult , sub debt with guarantee will provide there qui site financing to the MSME Units,

Eligibility/ Applicability

This Scheme seeks to extend support to the promoter(s) of the operational MSMEs which are stressed and have become NPA as on 30thApril, 2020;

Nature of Assistance

Promoter(s)of the MSMEs will be given credit equal to 15% of their stake (equityplusdebt) or Rs.75 lakh which ever is lower.The maximum ten or for repayment will be 10 years.There will be amoratorium of 7 years on payment of principal.

Guarantee for the sub  debt : 90 % guarantee coverage would come from the scheme /trust and remaining 10% from the concerned promoter

6. Scheme of Fund for Regeneration of Traditional Industries(SFURTI)


To organize the traditional industries and artisans into clusters in order to make them competitive and provide support for their long- term sustainability.

Nature of Assistance

The GoI assistance for various clusters: Regular Clusters (up to 500 artisans) – up to ₹ 2.50 cr. per cluster; Major Clusters (more than 500 artisans) – up to ₹ 5.00 cr. per cluster.

The scheme supports ‘Soft’, ‘Hard’ and ‘Thematic Interventions’. Soft Interventions: 10% of Hard Interventions with maximum ceiling of ₹ 25.00 lakhs (100% scheme funding); Hard Interventions: As per project requirement. 90% (95% in case of NER, J&K and Hilly States) of Hard Intervention cost is covered under GoI support. 10%-5% (NER, J&K and Hilly States) is contributed by IA/SPV along with land.

Eligibility to Apply as Implementing Agency (IA)

Non-Government Organizations (NGOs), institutions of the Central and State Governments and semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj institutions (PRIs), etc. with suitable expertise to undertake cluster development.

• Private Sector /Corporate entities can also take up projects directly by forming cluster-specific SPVs.

• Corporate and Corporate Social Responsibility (CSR) foundations with expertise in cluster development are encouraged to participate as Implementing Agencies. In case where a private sector entity is the IA, it shall contribute at least 50% of total project cost excluding the cost of land.

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