Government Schemes : CGMSE, CLCSS, Rajiv Gandhi Udyami Mitra Yojana

In order to promote business Govt of India launches various financing schemes from time to time and provide long term / short term loans directly and also through its various agencies like MSME, Coir Board, SIDBI, other Commercial Banks and RRB. Here our focus is on such schemes which are meant for Micro, Small and Medium Enterprises.

government scheme


The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. Both the current and new endeavors are qualified to be secured under the plan. The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI), built up a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to execute the Credit Guarantee Fund Scheme for  Micro and Small Enterprises

Facilities offered

  • Cash Credit for meeting working capital finance requirement
  • Letter of Credit to facilitate trade.
  • Bank Guarantees for performance and financial obligations
  • Term Loan for the purchase of commercial assets & business expansion needs

Lending Exposure:

Up to Rs 10 million( Rs.2 Cr) for meeting working capital and capital expenditure needs

2. Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Up-gradation of the Small Scale Industries

The scheme aims at facilitating technology up-gradation by providing 15 per cent upfront capital subsidy to SSI units, including tiny, khadi, village and coir industrial units (hereinafter referred to as SSI units), on institutional finance availed of by them for induction of well established and improved technologies in the specified sub-sectors / products approved under the scheme.

3.Rajiv Gandhi Udyami Mitra Yojana

RGUMY is another loan scheme for supporting MSME segment entrepreneurs for augmenting their capacities and providing assistance to potential first-generation entrepreneurs.

The objectives of Rajiv Gandhi Udyami Mitra Yojana (RGUMY) are:

(i) To provide handholding support and assistance to the potential first-generation entrepreneurs, who have already successfully completed or undergoing Entrepreneurship Development Training Programme (EDP) / Skill Development Training Programme (SDP)/ Entrepreneurship cum Skill Development Training Programme (ESDP) /Vocation Training Programmes (VT), through the selected lead agencies i.e. ‘Udyami Mitras’ , in the foundation and the board of the new venture, in managing different procedural and lawful obstacles and in consummation of various customs required for setting going of the undertaking.

(ii) To give data, support, guidance and help to original business visionaries just as other existing business visionaries through a ‘Udyami Helpline’ (a Call Center for MSMEs), to control them regarding various special plans of the Government, procedural customs required for setting going of the venture and help them in getting to Bank credit and so on

(iii) For setting up of micro-manufacturing enterprises, having an investment (in plant and machinery) up to Rs. 25,00,000/-, the handholding charges would be Rs. 6,000/- (Rupees six thousand only), including Rs. 1000/- (Rupees one thousand only) to be contributed by the beneficiary


Under RGUMY, financial assistance would be provided to the selected lead agencies i.e. Udyami Mitras for rendering assistance and handholding support to the potential first-generation entrepreneurs. Following agencies/

organizations can be appointed as the lead agency i.e. Udyami Mitra:

  1. Existing national level Entrepreneurship Development Institutions (EDIs).
  2. Micro, Small and Medium Enterprises Development Institutes (MSMEDIs)/Branch MSMEs.
  3. Central/ State Government public sector enterprises (PSEs) involved in the promotion and development of MSEs e.g. National Small Industries Corporation (NSIC) and State Industrial Development Corporations etc.
  4. Selected State level EDIs and Entrepreneurship Development Centers (EDC) in public or private sectors;
  5. Khadi and Village Industries Commission (KVIC).
  6. Special Purpose Vehicles (SPVs) set up for cluster development involved in entrepreneurship development;
  7. Capable associations of MSEs/SSIs; Other organizations/training institutions/NGOs etc. involved in entrepreneurship development/ skill development

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