Indian Government's Financial Aid For Small Scale Businesses

The Government of India is taking a lot of measures to facilitate small scale business sectors. A broad variety of financing schemes are being introduced to help small businesses to expand.  Small businesses contribute largely to the economy and helps in job creation. The Government assigns loans to businesses based on their association and size.
Public Sector Financial Institutions:

Government sector banks are the most easy and simple way to find aid for your business. Banks have introduced a variety of schemes that facilitates small scale organisations in their operation. Working capital is the basic requirement of any business. A wide range of both short and long term credit facility are available that supports SMEs. The interest rates on these types of loans are comparatively low.
Pointers to follow to receive Government grant:

  • The foremost requirement is to register your association. Without registering you will remain invisible to the Government and will not be able to expand your association.
  • You should have proper knowledge about the grant that you are applying for. It is vital to recognise your business’s classification and size.

Finding a Government Grant:

Small organisations concerned in expansion and technical research may be entitled for Governments grants under the SBIR scheme. This scheme usually funds those organisations that are involved in research and develop technological inventions. SIDBI is another leading government body that is primarily setup for providing financial help to small scale industries. Some of the common schemes are National Equity Fund Scheme, Single Window Scheme, and many more.

National Small Industries Corporation (NSIC):

NSIC’s primary objective is to boost small scale industries of the country. This body helps you to import foreign machineries on simple purchase terms. It also helps small industries to procure imported raw materials and export finished goods to the foreign market. They help the small industries to be aware of credit ratings and the benefits of maintaining strong financial records.

National Bank for Agriculture and Rural Development (NABARD):

NABARD is a very strong body that works towards the development of small scale industries setup in the rural areas of the country. They provides various consultancy and training sessions and also provide credit facilities to the under developed industries.
Small scale business amounts for a large portion of the country’s workforce and for this reason the Government is providing this sector with necessary resources to help them flourish. Both state government and local bodies are engaged in various programmes to help this sector. 

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