Schemes For MSMEs By The Maharashtra Government

Maharashtra is the second most populated state and is located in the Western Peninsula region of India. Maharashtra is the most industrialized state of the country over 1,67,312 micro, small and medium enterprises are operating in Maharashtra. to flourish these enterprises many schemes and policies are offered to micro small and medium enterprises. The state government has also taken many steps to remove possible roadblocks for kick-starting small businesses so as all those who aspire to become entrepreneurs do not hesitate and continue starting a business. By this initiative of the state government and other 1,42,716 units are about to start their operation in Maharashtra. great! isn’t it? Do you also want to set up your own venture Then what’s keeping you away? Do avail the benefits of the scheme offered by the state.

The schemes offered by the scheme are as under:-

  • Margin Money or Subsidy Scheme – Seed Money Scheme:- This scheme is a part of the Prime Minister’s Employment Generation Program. This scheme is implemented by the Maharashtra government to influence and motivate unemployed youth to set their start-up to earn their livelihood. Under this scheme, soft loans are provided to unemployed individuals so that they can have an excellent start to their business. Even the repayment policies of the scheme are very easy and do not become a burden.

The SMS is both for rural and urban individuals. The features of the scheme are as:-

  1. The scheme grants funds for a project whose costs upto Rs. 25 lakhs for any industry, service or business activity.
  2. Seed Money Scheme grants 15% of the project cost that is approved by financial institutions as assistance.
  3. For the project whose cost ranges up to Rs. 10 lakhs, the quantum of assistance would be upto 15% for the General category whereas the quantum of assistance would be 20% for SC, ST, NT, OBC, VT and handicapped.
  4. A seed money component up to Rs. 3.75 lakhs is provided under this scheme.
  5. A loan from the bank can be availed up to 75% of the project cost under the scheme.
  6. The rate of interest on seed money is 6% p.a. If the borrower pays the repayment at regular intervals within the stipulated period, then a rebate of 3% on interest is given.
  7. If any instalment is not paid on time, then it attracts 1% penal interest.
  8. The repayment of the loan begins after three years and in four yearly instalments in the case of industries and other cases, repayment begins after six months from availing the loan.

The main aim of this scheme is to encourage unemployed individuals to start their ventures. The eligibility criteria to avail benefit under this scheme are:-

    1. The age of the individual should be between 18 to 50 years.
    2. The individual should 8th pass.
    3. The individual should be a citizen of the state for at least 15 years.
    4. The individual should be unemployed.

The mandatory documents that have to be possessed by the applicants are as:-

    1. Caste Certificate
    2. Educational Marksheet
    3. Birth Certificate
    4. Bank Passbook
    5. Residential Proof
  • Margin Money or Subsidy Scheme – District Industries Centre Loan Scheme:- Under this scheme, financial assistance is provided in the form of margin or seed money in the total cost of the project. This scheme intends to encourage mini industries envisaging to generate self-employment or other employment opportunities in both semi-urban and rural areas of Maharashtra. This scheme is implemented by the General Manager at the district level. The main features of this scheme are as follows:-
  1. The assistance would be provided at 20% of the total investment, or Rs.40,000 whichever is less for the general category.
  2. For SC or ST category Rs.60,000 or 30% of fixed capital investment whichever is less will be offered as assistance.
  3. The rate of interest is 4% p.a. as set by the state government.
  4. The scheme is given for a maximum tenure of 7 years.
  5. The rural artisans are those who are most benefited by this scheme.

The eligibility criteria of the scheme is:-

  1. The Entrepreneur should be a resident of the state for at least 15 years.
  2. The investments of the unit should not exceed Rs.2 lakhs.
  3. The scheme covers only those towns and villages which have a population of less than 1 lakh.
  4. Village industry board, small-scale industry board, handloom, handicraft, silk and coir industry can also avail the benefit of this scheme.

Documents Required to get assistance under the scheme are:-

    1. Educational certificates
    2. Applicants should be an 8th class pass.
    3. Should be a domicile of Maharashtra for the last 15 years.
    4. Birth Certificate
    5. Caste Certificate
    6. Bank passbook
    7. Industry license, for existing industries
    8. Complete plan of industry, if establishing a new industry.
  • Chief Minister’s Employment Generation Programme:- Maharashtra government is going to launch Chief Minister’s Employment Generation Programme especially for micro, small, and medium Enterprises. According to Mr Harshadeep Kamble, the State Development Commissioner of industries, this scheme would create 10 lakh jobs in the next five years. This scheme would be implemented on the lines of the PM’s Employment Generation Programme.  You can apply online.

Under this, there would be a 30% reservation for women entrepreneurs. The main aim of this scheme is to promote entrepreneurship and to address the issues of unemployment among educated unemployed youth.

One lakh units in the would be set up in the next five years, out of which 40% will be in rural areas. The target for this year is to set up  10,000 micro-ventures by first-generation entrepreneurs.

Fifty new industrial parks will be developed at the taluka level by the government as an aid to this programme. This programme would surely act as a game-changer in the present scenario where the demand for jobs is increasing but there are a few vacancies.

The scheme will provide financial assistance of Rs 50 lakh for manufacturing activities and Rs 10 lakh in case of service sector activities.  Agro-based activities and others like retail other than manufacturing and services would also be included under this scheme.

These are the various schemes offered by the Maharashtra government. If you are a resident of the state and planning to start your own business then surely these schemes would act as a backbone for you.

Read more about the Schemes levied by other states for MSMEs here.

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