Manufacturing Unit Loan

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Manufacturing Unit Loan

Mentioned here certain schemes of laon to start a manufacturing Unit

1:Prime Minister Employment Generation Programme (PMEGP)


  • To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/ projects/ micro enterprises.


  • Financial assistance to selected candidates in term of bank loan for the margin money to the extent of 15% to 35% of the total project cost.

Area of Operation:

  • Rural areas as declared under DVIC Act 2006 – Scheme to be implemented by KVIC, KVIB and DIC.

    Eligibility Criteria for Beneficiaries:

    • Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs. 10 Lakh in the manufacturing sector and above Rs. 5 lakh in the business/ service sector.
    • Maximum cost of the project admissible under manufacturing sector is Rs. 25 lakhs and business/ services sector is Rs. 10 lakhs.
    • Beneficiaries are identifies &selected by the District Level Task Force consisting of representatives from KVIC/ State KVIB/ State DICs and Banks and headed by DM/ DCs.
    • Only new projects for activities excluding the negative list are considered for sanction under PMEGP.


    • General Category: @ 15% OF Project cost in urban area.
    • SC/ ST/ OBC/ Women/ Minority/ Handicap etc: 25% of the project cost in urban area & 35% in rural area.

    • Margin of Beneficiaries:

    • 10% of the project cost for General category & 5% of the project cost for SC/ ST/ OBC/ Women/ Minority/ Handicap etc.

    Rate Of Interest

    • Normal rate of interest as applicable to the enterprise from time to time.


    • No collateral security & No 3rd party guarantee.

    How to apply under PMEGP:

    2: Pradhan Mantri Mudra Yojana


    Term Loan and/ or Working Capital loan is provided up to maximum Rs. 10 Lakhs under the following three Shishu, Kishore & Tarun categories:

    Sishu: Covering loans upto Rs. 50,000.

    • Shishu Loan’s tenure is 5 years.
    • The interest rate to be charged in the Shishu category is normally in the range of 10% to 12%.

    Kishore: Covering loans above Rs. 50,000/- and upto Rs.5 Lakhs.

    • Kishore Loan’s repayment tenure is determined by the bank.
    • Interest rate to be charged will depend on applicant’s credit history, guidelines of the scheme etc. The interest rate in the Kishore category is normally in the range of 14% to 17%.

    Tarun: Covering loans above Rs. 5 Lakhs to Rs. 10 Lakhs

    • Tarun Loan’s repayment tenure is to be decided by the bank.
    • Interest rate to be charged will depend on applicant’s credit history, guidelines of the scheme etc. the interest rate in the Tarun category normally starts form 16%.

    Eligibility Criterion:

    • The business unit shoul style="line-height: 2.0;"d be either one of the following: Small manufacturing unit, Shopkeepers, Fruit and vegetable vendors and Artisans.

    • How to apply for a loan under MUDRA Yojana:

    • All Schedul style="line-height: 2.0;"e Commercial Banks in public and private sector.
    • Regional Rural Banks
    • All Micro Finance Institution (MFI) small business finance companies and NBFCs.’
    • Schedul style="line-height: 2.0;"e urban and state co-operative banks

    Required Documents for the MUDRA Loan Scheme:

    • Business Plan
    • Self Attested Identity Proof and Address Proof

    • Passport Size Photograph
    • Your firm/ business Registration Certificate, Address and ID proof
    • In case machinery have been purchased provided suppliers name, machinery details and machinery price
    • When the loan is passed, one will get a MUNDRA card, similar to a credit card with limit up to 10% of loan amount to purchase working capital.

    3:Stand Up India:

    • To promote entrepreneurship amongst the SC/ ST and women.
    • Composite bank loan of 75% of the project cost (inclusive of term loan and working capital) between Rs 10 Lakh and uptoRs 100 lakh.

    • The rate of interest woul style="line-height: 2.0;"d be applicable rate of the bank for that category (rating category) not to exceed ((MCLR)+3%+tenor premium).
    • Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL), nodal agency National Credit Guarantee Trustee Company, as decided by the banks.
    • The term loan is repayable within 7 years with a maximum moratorium period of 18 months. The borrowers shall require to bring in minimum of 10% of the project cost as own contribution.

    • Eligibility Criteria:

    • Loans under the scheme is available for only Green Field Projects.
    • The entrepreneur may be engaged in manufacturing, services or the trading sector. Age of beneficiaries – above 18 years.

    How to apply for loan under Stand-Up India:

    Directly at Bank branches/ Through SIDBI’s stand Up India Portal or Through the Lead District Manager?

    • Facility for uploading various documents like KYC documents, detailed project report etc. is available through the portal which woul style="line-height: 2.0;"d help banks in appraisal.
    • Borrower has the option of choosing the bank form which he/she wishes to avail the loan (option to choose 3 banks in order of preference is given.)
    • Loan will be sanctioned only if it conforms to the banks norms and subject to necessary due diligence like pre sanction and post sanction visit, end use verification etc.


  • Key Benifits:
    • Financial assistance up to Rs. 10 Lakhs per Start-up as interest free loan for 10 years. Entrepreneur shall contribute 5% of this financial assistance.
    • Success fee@ 2% of investment to start-ups for mobilizing investment from state registered angel investors towards early stage funding.
    • A financial assistance equal to the amount invested in startups by the Angel Groups and category I alternate Investment Funds shall be given as loan to the start-ups.
    • Facilitation in listing and public issue of Start-ups in collaboration with National Level Stock Exchanges
    • Incentives under Bihar Industrial Investment Promotion Policy, 2016 as per the eligibility. Govt. to bear all costs associated towards filing domestic patents
    • Reimbursement of fees for awarded foreign patents
    • Project Management Unit to specifically handhold SC/ST/ Women & Differently abled Start-ups in setting up their ventures
    • Additional 15% incentives for SC and ST entrepreneurs and for women and differently abled person.

    5. Chief Minister MSME Cluster Development Scheme


    • To enhance the competitiveness of MSMEs by way of facilitating access to modern technology and providing marketing support through establishment of Common Facility Centers (CFCs)

    • Common Facility Center (CFC):

    • Plant and machinery for common uses by cluster entrepreneurs.
    • Packaging center, design Centre and Testing Centre
    • Effluent Treatment Plant

    • Benifits:

    • Financial Assistance up to 90% of the approved project cost or Max Rs 10 Crore for establishment of CFC.
    • Support of Project Management Agency (PMA) for:

    • Formation of Special Purpose Vehicle for Operation and Management of CFC.
    • Preparation of Detailed Project Report.
    • ACoordination with the Department of Industries for sanction of Grant
    • Guidance and supervision of construction and Installation of machinery at CFC
    • Progress Reporting of CFC to Deptt. Of Industries.

    6. Bihar Industrial Investment Promotion Policy, 2016

    Reimbursement of Stamp Duty and Registration Fees:

    • 100% reimbursement from Stamp Duty and Registration Fees on Lease/ Sale/ Transfer of Industrial Land/ Shed
    • No stamp duty will be required to be paid in respect of land allotted by the Government to IDA/ BIADA or Government/ IDA/ BIADA to Private Industrial Area.

    • Reimbursement of Land Conversion Fees:

    • 100% reimbursement of land conversion/ change in land use fees for conversion of agricul style="line-height: 2.0;"tural land

    • Interest Subvention:

    • Term loan interest rate of 10% whichever is lower. For micro and small units, there shall an interested subvention of 12%.
    • Priority sector: Up-to 30% of approved project cost or Rs. 10 crore whichever is less.
    • Preparation of Detailed Project Report.
    • Non-priority sector: - Up-to 15% of approved project cost or Rs. 10 Crore whichever is less.

    • Tax Benefits:

    • 80% reimbursement against the admitted VAT /GST.
    • 100% reimbursement of Electricity Duty
    • Non-priority sectors: Up-to 100% of the approved project cost
    • Priority sectors: Up-to 100% of the approved project cost
    • For all new micro and small units and units engaged in generation of solar and/ or renewable energy for commercial purpose, limit will be enhanced by 30% or renewable energy for commercial purpose, limit will be enhanced by 30%

    Innovative Technologies available for commercialization through NRDC in following sectors:

    • Agricul style="line-height: 2.0;"ture, Horticul style="line-height: 2.0;"ture and Sericul style="line-height: 2.0;"ture
    • Bio-Pharmaceuticals
    • Diary Technology
    • Electronics & Electrical
    • Mechanical & Metallurgical Engineering
    • Mechanical & Civil Engineering
    • Animal Bio Technology
    • Food Technology
    • Health care Diagnostics
    • Herbal & Healthcare
    • Plant Bio Technologies

    • List of Public Funded R & D Institute for technology dissemination:

    • Council of Scientific & Industrial Research (CSIR):
    • Defense Research Development Organization:
    • Central Food Technology Research Institute (CFTRI):
    • Indian Council of Agricul style="line-height: 2.0;"ture Research (ICAR):
    • Indian Institute of Packaging (IIP):
    • Central Council for Research in Ayurvedic Science (CCRAS)
    • Bhabha Atomic Research Centre (BARC):
    • Central Silk Board:
    • Central Coir Board: