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Sabrina L WilliamsParticipant
The revamped credit guarantee scheme for micro and small enterprises announced in Budget 2023-24 comes as a relief for businesses struggling to secure credit. The scheme offers an infusion of Rs 9,000 crore to the corpus, enabling additional collateral-free guaranteed credit of Rs 2 lakh crore. The annual guarantee fee for loans up to Rs 1 crore has been reduced from 2% to 0.37%, reducing the overall cost of credit for small businesses. The limit on the ceiling for guarantees has also been increased from Rs 2 crore to Rs 5 crore, and for loans outstanding up to Rs 10 lakh, initiation of legal proceedings will no longer be required for the settlement of claims. To avail of these benefits, micro and small business owners can refer to the guidelines issued by the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE). Additionally, the corpus of CGTMSE has been infused with a sum of Rs 8,000 crore on March 30, 2023, and has already approved guarantees worth Rs 1 lakh crore during FY 2022-23. These measures are aimed at providing much-needed support to MSMEs, and business owners are encouraged to take advantage of them.
January 19, 2023 at 8:38 am in reply to: What is India’s most famous government programs and schemes for MSMEs? #1183Sabrina L WilliamsParticipantThe top five government schemes in India for MSMEs and startups are:
1.Credit Guarantee Trust Fund for Micro and Small Businesses (CGTSME)
2.Pradhan Mantri Mudra Yojana
3.Financial Support to MSMEs in ZED Certification Scheme
4.Design Clinic for MSMEs with Design Expertise
5.Credit-Linked Capital Subsidy for Technology Upgradation (CLCSS)January 9, 2023 at 12:30 pm in reply to: What are the best techniques for cash flow management among MSMEs? #1106Sabrina L WilliamsParticipantWhen you understand your company’s cash flow well, you may boost cash flow and better manage your business by implementing the following suggestions.
- Take your time sending invoices.
- Adjust your stock as necessary.
- Instead of purchasing equipment, consider leasing it.
- Borrow funds before you require them.
- Reconsider your business’s operations.
- Restructure your collections and payments.
- Analyze where your cash is being spent.
- Utilize advanced technology.
- Consider loan alternatives.
September 8, 2022 at 6:03 am in reply to: Does your credit have to be perfect to get an SMB loan? #866Sabrina L WilliamsParticipantThe Small Business Association (SBA) does not say what your credit score needs to be in order to get an SBA loan. But SBA loans come from lenders, and those lenders may have minimum credit score requirements. This minimum is usually around 620. But your chances of getting approved go up as your score goes up.
September 2, 2022 at 5:47 am in reply to: What kinds of papers do Indian MSME Finance loans need? #849Sabrina L WilliamsParticipantTo prove they are eligible and get the loan they need, applicants must provide KYC documents, business documents, and bank statements. The documents include proof of their name, address, income, bank statements, ITR or GST, and the fact that they have a business.
Different lenders have different rules about who can get loans and what documents they need. Check your lender’s rules before you apply.
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