Purpose
To generate employment by setting up new micro-enterprises in farm and non-farm sector in rural and urban areas.
Eligibility
- Indian citizen above 18 years of age
- No income ceiling
- VIII standard pass required for projects above ₹10 lakh (manufacturing) / ₹5 lakh (service)
- Only new units eligible
- Units that have already availed subsidy under any Govt. scheme are not eligible
Limit
- Manufacturing: Up to ₹50 lakh
- Service/Trading: Up to ₹20 lakh
Margin Money (Subsidy)
- General: 15% (Urban): 25% (Rural)
- Special Categories: 25% (Urban), 35% (Rural)
Own Contribution
- General: 10%
- Special Categories: 5%
Security
No collateral required for loans up to ₹10 lakh (as per RBI guidelines for MSME)
- CGTMSE coverage may be applicable
Repayment
3 to 7 years, including moratorium period
Rate of Interest
Starting from 8.95% to 12.55%*
Charges
