A

Micro Project Report

on
“Government Schemes For Entrepreneurs”

Submitted by
Gowardhane Pawan Dhulaji: 1911670424
Gadakh Aditya Laxmikant: 1911670425
Dhake Lokesh Anil: 1911670426

Under the Guidance of

Prof. [Link]
In the partial fulfilment of Fifth Semester of
Diploma in Electrical Engineering

Department of Electrical Engineering

Sandip Polytechnic
Mahiravani, Nashik - 422213
Affiliated to

Maharashtra State
Board of Technical Education, Mumbai
Academic Year 2021-22

Maharashtra State
Board of Technical Education

Certificate
This is to certify that Gowardhane Pawan Dhulaji (10),Gadakh Aditya Laxmikant (11),
Dhake Lokesh Anil (12) of Fifth Semester of Diploma in Electrical Engineering of
Institute Sandip Polytechnic, Nashik (1167) have completed the Micro Project
satisfactorily in the subject “Entrepreneurship Development ”(22032)for the academic
year 2021-22as prescribed in the curriculum.

Enrollment No Student 1: 1911670424 Exam Seat No 1:

Enrollment No Student 2: 1911670425 Exam Seat No 2:
Enrollment No Student 3: 1911670426 Exam Seat No 3:

Place: Nashik Date:

Subject Teacher Head of the Department Principal

Seal

ACKNOWLEDGEMENT
 We express our deep sense of gratitude to our subject teacher prof. [Link] for
their valuable guidance, support and encouragement in completing our micro project.

We would like to extend our gratitude to the head of the department of Electrical
Engineering [Link] for permitting us to utilize all the necessary facilities of the
department.

We are also thankful to all the faculties and staff members of our department for their
kind co-operation and help.

Lastly we would like to express our deep appreciation towards our classmates and our
indebtedness to our parents for providing us the moral support and encouragement.

Gowardhane Pawan Dhulaji (10) Enrollment No 1: 1911670424

Gadakh Aditya Laxmikant (11) Enrollment No 2: 1911670425
Dhake Lokesh Anil (12) Enrollment No 3: 1911670426

Place: Nashik Date:

Evaluation Sheet for the Micro Project

Academic Year: 2021-22
Course: Electrical Engineering Course Code: EE5I
Subject: Entrepreneurship Development Subject Code: 22032

Name of the Faculty: prof. [Link]

Title of Micro Project: Government Schemes For Entrepreneurs.

COs addressed by Micro Project:

A. Use the support systems to zero down to your business idea

Major Learning Outcomes achieved by students by doing the project:

a. Practical Outcomes:-Visit a bank/financial institution to enquire about various funding
schemes for small scale enterprise.
b. Unit Outcomes in Cognitive Domain:-Describe the help provided by the government
agencies for the specified product/service.
c. Outcomes in Affective Domain:-

Marks out of Marks out of

Total
06 for 04 for
Roll Enrolment Marks
Name of Student performance performance
No. No out of
in group in oral/
10
activity presentation
Gowardhane Pawan 191167042
10
Dhulaji 4
Gadakh Aditya 191167042
11
Laxmikant 5
191167042
12 Dhake Lokesh Anil
6

(Name Signature of Faculty)

1)Mudra loan

A huge number of micro, small, medium and large companies are housed in India. More so than ever,

this number is growing in leaps and bounds, which if successful, can contribute greatly to the

country’s economy. However, many of these come to a standstill and get stuck due to shortage of

funding. To be able to allow smooth flow with the aid of money, the government of India has

introduced a scheme called the Pradhan Mantri Mudra Yojana (pmmy). Working under this

scheme, enterprises can avail monetary aid in the form of mudra loan and fulfil their career related

dreams.

What is the Pradhan Mantri Yojana Scheme?

As stated above, the Pradhan Mantri Yojana scheme was launched only to help Indian small-

scale companies grow and reach penultimate success. This scheme was officially launched on 8th

April, 2015 and is dedicated to funding several such enterprises. The name ‘ mudra‘ is an

abbreviation for Micro Units Development and Refine Agency and mainly helps companies from

both, the profit as well as the non-profit sector with financing. Any eligible company or individual

seeking to avail the mudra loan can get financial help up to the amount of Rs. 10 lakhs. Companies

that would ideally be eligible for availing this loan are;

1. NBFCs (Non-banking financial corporations)

2. Small finance banks

3. MFIs (Micro finance institutions)

4. Commercial banks

5. RRB’s (Railway recruitment boards)

Type of Industries that Can Apply for Mudra Loan

The below mentioned industries can apply for the Mudra loan;

1. Shopkeepers

2. Business vendors

3. Food production industry

4. Agriculture sector

5. Small scale manufacturers

6. Restoration and repair shops

7. Handicraftsmen

8. Service based companies

9. Truck owners

10. Self-employed entrepreneurs

Salient Features of the Mudra Loan:

The following mentioned features of the mudra loan distinguish this scheme over several others

offered by the government;

1. The amount availed by this loan can be used to fulfil the working capital requirements of the
availing company

2. Mainly, is it aimed at serving industries that are engaged in manufacturing, trading and
services

3. Both, existing companies as well as new ones can apply for the pm mudra loan

4. The tenure of the mudra loan ranges from 3 years to 5 years, depending on what is agreed
upon at the time of processing

5. The mudra website and mudra app are well equipped enough for anyone to be able to
directly apply online

6. Enterprises have complete liberty to utilise the funds obtained via this loan for purchase of
equipment, buying machinery, expansion of business, restructuring of business, hiring
competent staff, additional working capital and many more
 7. No collateral or additional security via a third party is required

8. There are three products under the mudra loan scheme, offering versatility to borrowers

Benefits of Mudra Loan

There are several benefits associated with the Mudra loan scheme, some of which are stated

below;

1. No collateral or third party security is needed to avail any of the mudra schemes

2. The Mudra loan interest rate is very affordable and doesn’t exceed 1% on a monthly basis

3. Withdrawing the sanctioned amount with the help of a Mudra loan card is very easy without
the need of making a physical visit to the bank.

What are the Mudra Loan Products?

The Mudra loan is offered in three different variants, namely, ‘Shishu, Kishor and Tarun’. These are

categorized based on the level of development and monetary requirements of the micro company.

Once the loan is sanctioned, these funds can then be bifurcated towards capital needs, salaries,

additional operating costs, etc. These three products are termed as Mudra loans. Let us take a look

at these Mudra loan products in detail.

1. Sishu Yojana

In this category, micro or small business owners have the utmost advantage as they can apply for the

amount of up to Rs. 50,000. For those companies that require a small capital to be able to commence

their business, the shishu yojana works the best. For being able to successfully apply to this category,

the business owners will need to give clear details of their business ideas in addition to quoting the

type and quantity of machinery needed for purchase. So much so, that even the machinery supplier’s

details would need to be provided. Short of these details, chances of loan approval will be high. No

processing fee will be applicable on this product. Required documents for this product would include;

1. Quotation of all purchases including machinery and equipment

2. Details of all purchases

3. Details of supplier/s that will provide machinery and equipment

2. Kishor Yojana

Kishor under the Mudra scheme is a category which is ideal for business owners who have an

established business and are in pursuit of expanding it further. Applicants can seek loan amount that

ranges from Rs. 50,000 – Rs. 5 lakhs. To be able to successfully apply for Kishor, applicants must

submit a completed application form along with required documents which will establish a clarity and

status of their company. The documents that will specifically be required for this product

under Pradhan Mantri Mudra loan are;

1. Account statements from an existing banker for the latest six months (if any)

2. Balance sheet dating from the last two years

3. Memorandum of Association (MOA) (if any)

4. Articles of Association (AOA) (if any)

5. An estimated balance sheet for a one year or the entire tenure of the loan

6. Account of successful sales in the current financial year, before the application of loan

7. Income tax/ Sales returns

8. A report that will demonstrate the technical as well as economic sustainability of the
business

3. Tarun Yojana

This, just like Kishor is a Mudra loan scheme that offers financial aid in the form of loan to any

small business owners that are looking to expand their business. Borrowers can seek an amount up to

Rs. 10 lakhs, provided he or she meets the stipulated eligibility criteria. The Mudra loan

documents needed to be submitted under this loan include;

1. Balance sheet dating from the last two years

2. A report that will demonstrate the technical as well as economic sustainability of the
business

3. Memorandum of Association (MOA) (if any)

4. Articles of Association (AOA) (if any)

5. Account statements from an existing banker for the latest six months (if any)
 6. An estimated balance sheet for a one year or the entire tenure of the loan

7. Account of successful sales in the current financial year, before the application of loan

8. Income tax/ Sales returns

9. Proof of identity (PAN card, Aadhar card, drivers license, voter’s ID, etc.)

10. Proof of address (Passport, driver’s license, Aadhar card, etc.)

11. SC, ST, OBC, etc. certificates (if any)

Purposes of Mudra Loan

Micro, small and medium enterprises (MSME’s) play an important role in contributing to the economy of the

country. The Mudra loan helps MSME’s by fulfilling the following mentioned purposes;

1. Commencing a new business

2. Expanding and growing an existing business

3. Training as well as hiring of competent staff

4. Purchasing of machinery

5. Achieve working capital for business

6. Purchase of commercial vehicles

7. Purchase of equipment

Eligibility Criteria of Mudra Loan

MSME’s in both, rural and urban areas of India can apply for the Mudra loan only if they meet the

following mentioned criteria;

Eligibility Status Criteria

Age Limit 18 years – 65 years

Amount of Loan Shishu Yojana – Up to Rs. 50,000

Kishor Yojana – Rs. 50,000 – Rs. 1,00,000

Tarun Yojana – Rs. Up to 1 Lakh

 Type of Industry Individual occupied in agriculture, fruit and vegetable

vendor, Craftsmen, small scale manufacturer, store owner.

Company Status Shishu – New company commencement

Kishor & Tarun – Expansion of existing company

Tenure of Loan 3 years – 5 years

MUDRA loan Interest Rate:

The interest rate applied on MUDRA loans are based on RBI defined MCLR (Marginal Cost of

Lending Rate) with the following break-up.

Up to Rs.50000:

 Micro Enterprises: MCLR + SP

 Small Enterprises: (MCLR + SP) + Bank Load

Above Rs.50000 up to Rs.2 lakhs:

 Micro Enterprises: (MCLR + SP) + Bank Load

 Small Enterprises: (MCLR + SP) + Bank Load

Above Rs.2 lakhs up to Rs.10 lakhs:

 Micro Enterprises: (MCLR + SP) + Bank Load

 Small Enterprises: (MCLR + SP) + Bank Load

Documents Required to Apply for Mudra Loan

Though the documents might differ from the type of product chosen, the following mentioned

documents would be the generic requirement when applying for Mudra loan;
1. Identity proof such as Aadhar card, PAN card, Driver’s license, voter’s ID, etc.

2. Proof of address such as Aadhar card, passport, utility bills, bank statements, etc.

3. Passport sized photos of the borrower/applicant

 4. Address proof of enterprise if applicable

5. Identity proof of license of the enterprise if applicable

6. Quotation proof of merchandise/equipment/plant to be purchased

Application Procedure for Mudra Loan

Many banks offer the facility of this loan and the Mudra loan application can be applied for

following the below mentioned steps;

1. Visit the official website – [Link] and then download the application form.

2. Fill this form with accurate details such as name, address, number, and KYC details

3. The required Mudra loan documents then need to be submitted along with the application
form

4. Additional procedures required by the bank, then need to be fulfilled. (This will differ slightly
from bank to bank)

5. Selected bank will then verify the documents

6. Loan amount then gets credited to the account verification

 2)Stand Up India Scheme

Overview:

Among the many initiatives launched by the Government of India in the recent past has been the

unique Stand Up India Scheme aimed at boosting the entrepreneurial capabilities of the not so

privileged which covers the SC/St and women. This flagship endeavor of the Government launched in

April 2016 is anchored by the DFS (Department of Financial Services) under the overall supervision of

the Ministry of Finance. It is typically designed to facilitate Stand Up India Loan to the eligible

entrepreneurs who qualify for assistance from the banks and NBFCs. A detailed study to learn

the Stand Up India scheme details and the features of the loan shall be able to draw a clear picture of

the scheme in general and also its relation with the Startup India Scheme launched a few months

earlier with more generalized goals to help grow entrepreneurship and greenfield projects in India.

Features of Stand Up India:

It is interesting to note that both Stand-Up India and Startup India are similar to the extent of being

enablers and beneficiaries of the other landmark schemes of the Government of India like Make in

India, Bharatmala and Sagarmala to name a few. However, Stand Up India is dedicated to the uplift of

the Scheduled Caste and Tribe (SC/ST) community as well as Women entrepreneurs who have faced

bias and challenges in their business ventures. To remove this deficiency in the ecosystem within the

country, the scheme was launched with a very broad spectrum. The salient features of the Stand Up

India Scheme are:

 Objective: It is aimed to remove and acknowledge the challenges faced by members of the SC / ST

community and women entrepreneurs by providing loans to build greenfield projects comprising of

services, manufacturing or trade.

 Amount of Loan: The loans are designed to be in the range of Rs.10 lakhs to Rs.1 crore at the

maximum. However, the cap of finance of 75% shall not apply if there is a contribution by the borrower

greater than 25%.

 Holding Pattern: In the case of group enterprise, a minimum of 51% stake and shareholding must

belong to a woman entrepreneur or a member of the SC / ST community.

 Nature of Stand Up India Loan Scheme: It is in the form of a composite loan which includes term

loan and a working capital loan.

 Loan Delivery: The loan will be extended by all scheduled commercial banks and some NBFCs with

loans designed in the pattern of the scheme via SIDBI’s Stand Up India portal or the Lead District

Manager.

 Security: At the discretion of the bank the primary security will be additionally reinforced by the

provision of collateral or Stand Up India Scheme subsidy in the form of a guarantee from the Credit

Guarantee Fund Scheme for Stand Up India Loans (CGFSIL).

 Repayment: The repayment terms of the loan under Stand Up India are very liberal, extending up to a

maximum of 7 years inclusive of a moratorium of 18 months.

 Working Capital Finance: Up to Rs.10 lakhs can be drawn in the form of Overdraft. But if the need is

higher, then the facility has to be converted into a Cash Credit facility with an appropriate limit.

 Margin Money: It is expected that the State / Central Government will provide Stand Up India Scheme

Subsidy to the tune of 25%, it is also expected that the promoter of the project will cough up 10% of the

overall cost.

 Indicative Figures: Some of the important statistics of Stand Up India as of 30 June 2019.
Total 243720
Registrations
Number active on Banks 103
the portal Branches 133236
Online loan 3457
sanctioned
Total applications Number 68930
sanctioned Amount Rs.15112
crores
Total loans Number 53782
disbursed Amount Rs.8275
crores
Stand Up India Scheme Eligibility:

The parameters defined to check if the applicant is eligible for availing a Stand Up India

Loan contains the following:

 The individual entrepreneur must be at least 18 years of age.

 The applicant must mandatorily be a woman or a member of the SC/CT community.

 Venture under this scheme must be a greenfield in nature, that too in the type of business specified.

 The applicant must not be a defaulter to any financial institution or a bank in the past.

 The further parameters that shall impact the availability of Stand Up India Loan are:

 The location of the business and the residence of the borrower.

 The category of the promoter, whether SC/ST or a woman.

 Assistance for the preparation of the project plan.

 The quantum of the self-investment in the business venture by the promoter borrower.

 If the borrower needs any assistance to raise the margin money.

 Prior experience of the borrower in handling such a business.

Documents Required for Stand Up India Loan:

The documentation process for availing of the loan under the scheme is a bit elaborate, and the

requirements are as under:

 Identity Proof: Any valid photo identity proof acceptable to the bank.

 Address Proof: Any valid address proof document of the individual and the business firm.

 Memorandum of Articles of the Association of the Company.

 Partnership deed in the case of a partnership firm.

 Copies of the lease deeds.

 Copy of the Rent Agreement.

 The last three balance sheets of the company.

 Assets and Liability statements of both the borrower and the guarantor.

Stand Up India Loan Interest Rate:

The rate prescribed under the scheme shall be the lowest for the category which is again subject to a cap

of MCLR + 3% + Tenor Premium.

Stand Up India Registration:

The basic requirement for Stand Up India Loan Application is through the process of registration,

which can be accomplished in a few steps as under.

1. The first step is to visit the official portal of Stand Up

India at [Link]

2. Enter the full details of the business location.

3. Select the category between SC, ST, Woman, and whether the stake held is 51% or higher.

4. Select the nature of the proposed business; the loan amount desired description of the business,

the details of the premises, etc.

5. Populate the fields with past business experience, including tenure.

6. Select the need for hand-holding is required.

7. Enter all the personal details sought, which include the name of the enterprise and the

constitution.

8. The last step is to select the register button to complete the process.

Once you have completed registration, you are eligible to initiate the Stand Up India Loan

Application process with the respective financial institution for the officials to contact you for

completing the Stand Up India Loan Process and requisite formalities.

The basic aim of Stand Up India is to work for the empowerment of the not-so-privileged component

of the society who are victims of caste and gender bias. Accordingly, the schemes envisage the

promotion of economic development of these sections and help in the generation of employment. The

digital platform is designed in such a way that the scheme benefits 2.5 lakh borrowers in the targeted SC

/ ST and women category through the delivery of loans by 1.25 lakh bank branches pan India. In

addition to the facilitation of loans to the target audience, it also additionally provides hand-holding,

guidance, mentoring and skill development for budding entrepreneurs.

3)Udyogini Scheme for Women Entrepreneurs

What is Udyogini Scheme?

One of the primary concerns of the government is to empower women of India and make them

Aatmanirbhar. Keeping the welfare of women in mind, the Government of India has launched various

initiatives and assisted in their development in all spheres of life. Udyogini scheme is one such scheme

that provides financial assistance to budding entrepreneurs in the rural heartland and under-developed

areas of India.

The Government of India under Women Development Corporation has launched the Udyogini scheme

for Indian Women entrepreneurs. The scheme encourages poor women entrepreneurs with financial

assistance to start their own business. Under the scheme, these women entrepreneurs can avail of liberal

loans for starting their business activities under different categories.

The Udyogini scheme aims to enable women to become financially independent and support their

families in rural or backward areas of our country.

Udyogini Scheme Insights

Under this scheme, the government has directed financial institutions, including banks, to provide

interest-free loans to women belonging to different sections of the society without any prejudice or

preference. Primarily, Udyogini scheme was launched by the Karnataka State Women’s Development

Corporation (KSWDC), Saraswat Bank, Punjab and Sind Bank, Regional Rural Banks, Cooperative

Banks along with different private and other Public sector Banks.

Loan amount Max amount up-to ₹3

lakh

Interest rate Very competitive

(highly subsidized or

free loans to special

category)

Annual family ₹1.5 lakh or less

 income (applicant)

Age limit Min. 18 years and

max. 55 years

For widows or No income limit

disabled women

Collateral Not required

Processing fees Nil

How does the Udyogini scheme work?

The Udyogini scheme is meant to harness women entrepreneurship potential by providing customized

loans in rural or underdeveloped areas of India. The ambitious scheme is simple and follows the steps:

 Women from targeted areas are given the necessary skills and customized business services.

 With adequate funding sanctioned focus shifts on increased production

 Increased income from operations

 Active women participation in decision making

Features of the Udyogini Scheme

 Interest-free loans

The Udyogini scheme aims to provide financial help to women in establishing their small businesses.

Financial institutions are more liberal in funding women belonging to special categories such as

widows, destitute, and disabled are accorded special privileges. Women under special categories get

interest-free loans under the scheme.

 High-value loan amount

Some of the applicants can get a loan of Rs. 3 lakh under the Udyogini scheme. However, for availing

this amount, eligible applicants must meet the required eligibility criteria.
 88 Small scale Industries are covered under the scheme

Eighty-eight small scale industries get loan benefits under the scheme. Interest-free loans are also given

to women entrepreneurs in the agriculture sector.

The list of 88 small-scale industries are:

Agarbatti Edible oil trade Library Radio & TV Bakeries

Manufacturing service

Audio-Video Energy food Leaf cup mfg. Ragi powder Banana leaf

Parlour shop mfg.

Bedsheet & Fairtrade shop Mat weaving Readymade Beauty

Towel mfg. garment Parlour

Books & Fax paper mfg. Matchbox mfg. Real estate Bangles

notebooks agency

binding

Bottlecap mfg. Fish stalls Milk booth Ribbon mfg. Creche

Bamboo article Flower shops Mutton stalls Sari & Clinic

mfg. embroidery

Canteen & Flour mills Newspaper Security Condiments

catering etc., vending service

Chalk Crayon Fuelwood Nylon button Shikakai Diagnostic

mfg. mfg. powder mfg lab

Chappal mfg. Footwear mfg. Old paper mart Silk weaving Coconut

shop

Cleaning powder Gift articles Pan & cigarette Shops & Travel

shop establishment agency

Coffee & Tea Gym centres Pan masala Silk thread Tutorials

powder shop mfg.

Corrugated box Handicrafts Papad mfg. Silk-worm Typing

mfg. mfg. rearing institute

Cotton thread Household Phenyl & Soap oil, Vegetable

mfg. article retail naphthalene cake mfg. vending

Cut-piece cloth Ice cream Photo studio Stationery Vermicelli

trade parlour shop mfg

Dairy& poultry Ink mfg. Pottery STD Wet

trade BOOTHS grinding

Dry cleaning Jams, Jellies, Plastic article SWEET Woollen

pickles mfg. shop SHOPS garment

mfg

Dry fish trade Typing & Printing & Tailoring

photocopy dyeing

Eat outs Jute carpet mfg. Quilt & Bed Tea stall
 mfg.

 Training for skill development

Under this scheme, skill development training is also imparted to women for establishing their business.

The training includes the basics of running the business, such as:

 Business planning

 Pricing

 Costing

 Feasibility of the business

 Up to 30% loan subsidy

The main objective of the Udyogini scheme is to enable women to start and sustain their businesses. In

helping them financially, the government proposes giving a 30% subsidy on the loans extended to the

women entrepreneurs. This further helps in easing the financial burden and making loan payments

affordable.

 Transparency in applicant evaluation

There is a transparent mechanism adopted to evaluate the eligibility criteria of an applicant before

extending the loan. The Udyogini scheme application form checks the veracity of the beneficiary

transparently.

Eligibility Criteria to apply for Udyogini Scheme

Aspiring Indian women entrepreneurs who want to benefit from the Udyogini scheme has to fill the

Udyogini loan application. They are eligible to receive the funding after meeting the required criteria

such as:

Gender Woman

Age criteria Minimum 18 years &

 Maximum 55 years

Annual Family ₹1.5 lakh or less

income

Collateral Not required

For widow & No age limit

Disabled woman.

Documents required to apply for Udyogini Scheme

 Passport size photographs – 2

 Aadhar card

 Birth certificate

 A letter is written on local MLA OR Local MP latter pad

 BPL card photocopy

 Caste certificate (for SC/ST)

 Income proof

 Photocopy of Bank passbook

Benefits of Udyogini scheme

Some of the benefits of the scheme are:

 Under the scheme, 7047 women entrepreneurs are supported.

 5432 children are supported under the scheme.

 1698 villages are covered till now.

 53762 producers are engaged so far.

With a secular aim to motivate and assist women entrepreneurs in backward areas, the Government of

India launched the Udyogini scheme. The scheme mainly supports the poor and illiterate women in rural

areas and helps them become financially independent. Through financial assistance and imparting skill

training, government women entrepreneurship and empowerment.