Entrepreneurship Development (22032) GOVERNMENT SCHEME FOR BUSINESS STARTUP

MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION

The Shetkari Shikshan Mandal’s
Bhivarabai Sawant College of Engineering & Research Polytechnic
Academic year: 2022-23

MICRO PROJECT

ON

GOVERNMENT SCHEME FOR BUSINESS STARTUP

Program: Computer Program code: CO6I

Course: Entrepreneurship Development

Course code: 22032

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Entrepreneurship Development (22032) GOVERNMENT SCHEME FOR BUSINESS STARTUP

MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION

CERTIFICATE

This is to certify that Mr. Nitesh Gowardhan Borla Roll No.50 of VI Semester of
Diploma in Computer Engineering of Institute, BSCOER POLYTECHNIC (Code: 1606)
has completed the Micro Project satisfactorily in Subject – Entrepreneurship
Development (22032) for the academic year 2019 – 2020 as prescribed in the
curriculum.

Place: NARHE Enrollment No: 2016060144

Date: Exam Seat No:

Subject Teacher Head of the Department Principal

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Entrepreneurship Development (22032) GOVERNMENT SCHEME FOR BUSINESS STARTUP

INDEX

SR.NO CONTENT PAGE NO.

.

1 ABSTRACT 4

2 INTRODUCTION 5

3 TYPES OF GOVERNMENT SCHEME FOR BUSINESS STARTUP 6-7

4 GOVERNMENT BUSSINESS LOAN SCHEMES 8

5 REQUIRED DOCUMENT & ELIGIBILITY 9-12

6 CONCLUSION 13

7 WEEKLY PROGRESS REPORT 14

8 ANNEXURE II 15

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Entrepreneurship Development (22032) GOVERNMENT SCHEME FOR BUSINESS STARTUP

1. ABSTRACT

These startup schemes have been introduced over a period of time and many of these were
introduced before the launch of Startup India plan. India’s first five-year plan government started
various schemes for poverty reduction programmer. Because of the government schemes poverty ratio
of India are reduced. Government spent so much money for below poverty line families but government
does not achieve the expected target. Poverty exists not only in India but its presence is worldwide.
Poverty is focused as a hurdle into development. Poverty creates economics as well as social problems
that harm the society at large. In order to increase in self-employment, Integrated Rural Development
Programmer, Janani Surekha Yojana, Balika Samruthi Yojana, Allowance for presence in the schools
for marginalised, SCs and STs students, Suvarn Jayanti Gram Swayam Rojgar Yojana, Indira Awas
Yojana, different types of scheme are implemented by the Govt.

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2. INTRODUCTION

Startup India is a revolution scheme that has been started to help the people, who want to start
their own business. These people have ideas and capability so government will give them support to
make sure they can implement their idea & grow. The campaign was first announced by Prime Minister
Modi in his 15 August 2015 address from the Red Fort. Success of this scheme will eventually make
India, a better economy and a strong nation. Startup India Definition First of all we have to understand
about Govt Startup Definition. Any Legal entity will be identified as a startup. Registered or
incorporated not prior to 5 years. If its turnover does not exceed 25 crores in the last five financial years.
It is working towards innovation, development, deployment and commercialization of new products,
processes, or services driven by technology or intellectual property. Important to note following points:
Provided that such entity is not formed by splitting up or reconstruction, of a business already in
existence. Provided also that an entity shall cease to be a Start-up if its turnover for the previous
financial years has exceeded INR 25 crore or it has completed 5 years from the date of incorporation/
registration. Provided further that a Startup shall be eligible for tax benefits only after it has obtained
certification from the Inter-Ministerial Board, setup for such purpose.

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Entrepreneurship Development (22032) GOVERNMENT SCHEME FOR BUSINESS STARTUP

3. TYPES OF GOVERNMENT SCHEME FOR BUSINESS STARTUP

3.1 MSME government business loan scheme

3.2 MUDRA business loan

3.3 Credit guarantee fund government business loan scheme

3.4 National Small Industries Corporation Subsidy

3.5 Credit Link Capital Subsidy Scheme

3.6 PSB Loans etc.

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4. GOVERNMENT BUSINESS LOAN SCHEMES

4.1 MSME government business loan scheme:

The Indian Government launched the MSME business loan scheme as a working capital loan. As an
MSME, you can get a loan sanction of up to Rs.1 crore within just 59 minutes. The best part is you get
this loan at 8% rate of interest, keeping the repayment easy on your pocket. A reservation of 3% is
available for women entrepreneurs, so as to offer a quick sanction to the increasing number of women
helming their own business today.
When applying for the loan, follow these basic steps:
- Enter your business’s GST Identification Number
- Upload the income tax returns for your business in XML format
- Upload the bank statements of your business account for the last six months in PDF format.
- Enter the director/owner’s details for your business. This will include all details related to personal,
educational, and ownership criteria.
- Submit the application to enjoy an on-principle sanction within 59 minutes!

4.2 MUDRA business loan:

Established by the current government, Micro Units Development and Refinance Agency (MUDRA)
has envisioned the idea of ‘funding the unfunded’ and put it into action with a funding scheme. Small
business entities and start-ups are given financial support in the form of low-cost credit. MUDRA Loans
are financed through public and private sector banks, co-operative societies, small banks, scheduled
commercial banks, and rural banks.
Broadly, any MSME operating in the manufacturing, trading and services sector is eligible for
the MUDRA loans. Your firm can avail funds via the government business loan scheme under three
subheads.
- Sishu Loans up to Rs.50,000
- Kishor Loans up to Rs.5,00,000
- Tarun Loans up to Rs.10,00,000

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To facilitate easy funding, the government has recently introduced the MUDRA Card. This innovative
product provides a working capital facility as a cash credit arrangement. This card is given to you as a
debit card against your MUDRA loan account. Based on your sanction, you can withdraw funds from
your MUDRA loan account multiple times. Until and unless you use a portion of the sanction, you will
not be charged interest on it. You can use your MUDRA card for POS purchases or to withdraw cash
from any ATM across the country.

4.3 Credit guarantee fund government business loan scheme:

CGTMSE has been in action for 18 years now. Since its inception, the Credit Guarantee Fund Trust for
Micro and Small Enterprises has been facilitating collateral-free loans for MSEs. Any scheduled
commercial bank and regional rural bank can become a part of the scheme by empaneling itself as a
lending authority. The agency sanctions loans to eligible Micro and Small Enterprises basis their credit
standing via the lending agencies in question.
The scheme provides working capital loans up to Rs.10 lakh and has provisions for bigger sanctions as
well. However, to get approval for an amount exceeding Rs.10 lakh, you will need to mortgage your
business assets and land.

4.4 National Small Industries Corporation Subsidy:

Established in 1955, NSIC offers MSMEs two kinds of funding benefits: raw material assistance and
marketing assistance. Any business qualifying as a micro and small enterprise having EM Part-II
(Optional)/ Udyog Aadhaar Memorandum (UAM) is eligible to register for this government business
loan scheme under its Single Point Registration Scheme (SPRS).
Once you qualify, you can opt for the raw material assistance scheme, where funding for both
indigenous and imported raw material is covered. Under the marketing support, you can avail funds and
use it to enhance your competitiveness and the market value of your offerings. The NSIC also overlooks
the functioning of an MSME and supports it in its endeavor to enrich production and quality.

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4.5 Credit Link Capital Subsidy Scheme:

This government business loan scheme funds technological upgradations. Under the varied facets of the
scheme, you can access finance to enhance your technology and equipment. You can use the funds from
your sanction to undertake a revamp related to numerous processes for your business, like supply chain
manufacturing, marketing, and supply chain.
Through this scheme, the government plans to reduce the production cost borne for creating and
providing goods and services by small and medium enterprises. This will pave the way for a more
competitive local and international market ecosystem.
Under this scheme, you can get an upfront 15% capital subsidy for your business. However, the
maximum amount you can avail as subsidy is capped at Rs.15 lakh. In order to be eligible for a loan
under this scheme, you need to apply as a sole proprietorship business, partnership firm, and co-
operative or private and public limited company.

4.6 PSB Loans:

On Nov 5, 2018, our Prime Minister, unveiled a dedicated digital platform to enable loans of up to Rs. 5
crore in just 59 minutes. The government launched this business loan scheme to provide financial
assistance to the Micro, Small and Medium Enterprises (MSMEs) throughout India. Some of the great
features about this facility are:
Fast access to financial assistance: Usually such loan processes take about 7-10 working days to
complete. However, the loan approval process takes in just 59 minutes
Loan amount: The loan amount offered under this loan will be between Rs. 1 Lakh and maximum is up
to Rs. 5 crore
Rate of interest: The rate of interest offered under this scheme is 8.5% onwards
Quick disbursal: After the loan gets approved in an hour, you can expect the money to reach in your
bank account in 7-8 working days
Collateral-free: To avail the loan, collateral is not mandatory as the online portal is directly linked to
the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme

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5. REQUIRED DOCUMENT & ELIGIBILITY

5.1 Documents Required to Government Loan Schemes:

The documents required for these government schemes may vary from one scheme to another. a few
common documents:

 Passport-sized photographs.
 Business plan.
 Identity, Age, Address and Income Proofs.
 GST Identification number.
 Details of income tax paid over the last 3 to 5 years.
 Bank statements of last 6 months.
 Business address proof.
 ITR returns for last 2 years.
 Details of the type of loan that you want.
 List of company Directors or partners of the company/partnership firm.
 E-KYC: All the documents that the applicant would use to apply for E-KYC are needed here, as
well.

5.2Government Business Loans: Eligibility Criteria:

The factors of eligibility criteria involve the following:

 Age of the applicant

 Loan amount
 Type of Business
 Credit Score
 Annual Turnover
 Capital Invested

Government loans are offered to individuals, start-up enterprises, sole proprietorship, and partnership
firms, business owners, SMEs, MSMEs, private limited companies, large enterprises, etc. The minimum
age criterion to apply for a government business loan is 18 years. For the existing businesses the
minimum business existence to apply for a loan is 2 years. Minimum credit score to be above 650
required by loan schemes to sanction loan.

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5.3 Steps to Register with the Loan Schemes:

Step 1: Go to the desired bank’s official online portal associated with the scheme
Step 2: Register on the portal and log in through the One-Time Password (OTP) authentication
Step 3: Agree to the terms and conditions of the Government loan scheme
Step 4: Enter your financial credentials and other information required
Step 5: Proceed further and continue with filling the forms and uploading the required documents

6. CONCLUSION

There are small business grants are awarded to help launch a start up or new business, with the

aim to generate jobs and stimulate the economy. To be successful in sustainable business practices often

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requires entrepreneurship and innovation. This chapter provides an overview of entrepreneurship and
innovation as it relates to sustainable business. The discussion is most relevant to sustainable businesses
focused on offering new products and services in response to societal concerns. The importance of
entrepreneurship and innovation also applies to companies that change how they produce products and
services. The latter companies can use innovative practices and entrepreneurship to establish their brand
name and to be market leaders in doing things that create shared value for society and their companies
and also, over time, contribute to changes in practices in their industry.

WEEKLY PROGRESS REPORT

MICRO PROJECT

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SR.NO. WEEK ACTIVITY PERFORMED SIGN OF DATE

GUIDE

1. 1st Discussion and finalization of topic

2. 2nd Preparation and submission of Abstract

3. 3rd Collection of Data

4. 4th Discussion and outline of Content

5. 5th Formulation of Content

6. 6th Editing and proof Reading of Content

7. 7th Compilation of Report and Presentation

8. 8th Seminar / Viva voce

9. 9th Final submission of Micro Project

Sign of the student Sign of the faculty

ANEEXURE II

Evaluation Sheet for the Micro Project

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Entrepreneurship Development (22032) GOVERNMENT SCHEME FOR BUSINESS STARTUP

Academic Year: 2022-23 Name of the Faculty: Prof. Bele.B.Y

Course: Entrepreneurship Development Course code: 22032 Semester: VI
Title of the project: GOVERNMENT SCHEME FOR BUSINESS STARTUP

COs addressed by Micro Project:

C032.2: Identify the Business Opportunities that suits you.

C032.3: Use the support system to zero down to your business idea.

Major Learning outcomes achieved by students by doing the Project:

(a)Practical Outcome
Pro 5: Visit a Bank/ financial institute to enquire about various funding scheme for small scale
enterprise.

Pro 6: Collect loan application form of nationalize bank/ other fanatical.

Pro 13: Compile the information from the government agencies that will help you set your business
enterprise.

(b)Unit Outcomes in cognitive Domain

2a. Arrive of business opportunity on the basis of given data with Justification.

2b. Describe the scheme offered by government for starting enterprise.

2c. Suggest suitable place for setting up specified enterprise on the basis of given data with Justification.

2d. Suggest setup selection process of enterprise for specified product or process with justification.

2e. Describe market study procedure of specified enterprise.

3a Describe the support system required for the specified enterprise.

3b. Describe the help provided by the government agencies for the specified product/service.

3c. Describe the help provided by the nongovernment agencies for the specified product/service.

3d. Computer the breakeven point for the specified.

(c)Outcomes in affective Domain

2b. Describe the scheme offered by government for starting enterprise.

3b. Describe the help provided by the government agencies for the specified product/service.

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Marks out of 8 for

Marks out of 12 for
performance in oral/
Roll No Student Name performance in activity
presentation Total
(D3(A) Col.8)
(D3(A) Col.8) out of 20
Nitesh Gowardhan
50
Borla

Prof. Bele.B.Y

(Signature of Faculty)

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