An entrepreneur requires a continuous flow of funds not only for
setting up of his/ her business, but also for successful operation as well as
regular up gradation/ modernization of the industrial unit. To meet this
requirement, the Government (both at the Central and State level) has been
undertaking several steps like setting up of banks and financial
institutions; formulating various policies and schemes, etc. All such
measures are specifically focused towards the promotion and development of
small and medium enterprises.
1. State Bank of India (SBI) provides a wide range of financial products and services
that can cater to any business or market requirement. It deploys multiple
channels to deliver integrated solutions for all financial challenges faced
by the corporate universe. Its various funding schemes are:-
Working capital finance, extended to all
segments of industries and services sector.
Corporate term loans to
support capital expenditures for setting up new ventures as also for
expansion, renovation, etc.
Deferred payment guarantees to support purchase
of capital equipments.
The bank also provides financial assistance to agriculturists
through a network of rural and semi-urban branches. These specialized
branches have been set up in different parts of the country exclusively for
the development of agriculture through credit deployment. Their schemes cover
a wide range of agricultural activities likecrop loan, finance to horticulture, farm mechanization schemes, land development schemes, minor irrigation projects, agricultural term loans, etc.
2. Bank of Baroda offers various products and services that meet the
specific requirements of business enterprises, particularly the small scale
units. Various schemes relating to the provision of loans and advances by the
3. Andhra Bank has also devised a host of loan schemes to meet the
financial requirements of an enterprise. These particularly cater to the
corporate and agricultural sector. Some of its important funding options
Small scale industries need credit support on a continuous basis for running
the enterprise as well as for its diversification and modernisation.
Recognising the need for a focused financial assistance to such industries,
the Government of India, together with the State Governments, has formulated
several policy packages including schemes and funds for their growth and
development. Most of these programmes of the Central Government are implemented
through two principal organisations:-
1. Small Industries Development Organisation (SIDO) is an apex body for promotion and development of small
scale industries in the country. Its major activities include:-
Advising the Government on formulation of policies and
programmes for the small-scale industries.
Conducting periodical census/survey of the small scale industry
and generating data/reports on various important parameters/indicators of
growth and development of the sector.
Maintaining close liaison with other Central Ministries,
Planning Commission, State Governments, Financial Institutions and other
organisations concerned with the development of small-scale industries.
Facilitating linkage of small-scale industries as ancillaries to
large and medium scale industries.
Developing human resource base through training and skill
For achieving its objectives, SIDO has devised a comprehensive
range of schemes for providing credit facilities, technology support services
and marketing assistance, etc. Some of the major schemes are:-
2. National Small Industries Corporation Ltd (NSIC), has been
established with the objective of promoting, aiding and fostering the growth
of small scale industries in the country. It has been assisting small
enterprises through a set of specially tailored schemes which facilitate
marketing support, credit support, technology support and other support
At the State
1. Kerala Financial Corporation (KFC), incorporated under the State Financial Corporations Act
of 1951, is a trend setter in the field of industrial finance. It has been
playing a major role in the development and industrialisation of Kerala
by extending financial assistance well-suited for the requirements of the
entrepreneurs. Its main objective is to extend term loan
assistance for establishing new industrial units or to extend credit
assistance for meeting expansion/diversification/modernisation costs of the
existing units, in small scale or medium sectors. Some of its major schemes include:-
2. Madhya Pradesh Financial Corporation is the premier institution in the State of Madhya Pradesh engaged
in providing financial assistance to small and medium industries. This
assistance has been extended in the form of a wide range of fund and non fund
based services/ schemes. The fund based schemes are available for setting up
of business ventures within the State, whereas, non fund based schemes are
available throughout the country.
The fund based schemes include:-
The non-fund based schemes include:-
Source : Thanks to http://business.gov.in.