Resources & Scheme Guide

Plain-language guides to the schemes, documents and terms that come up in every MSME funding file.

Schemes

Schemes most units we meet are eligible for

Central

For: New micro units; project cost up to ₹50 lakh (manufacturing) or ₹20 lakh (service)
Benefit: Margin money subsidy of 15%–35%, by location and category. Own contribution 5%–10%.

Central

For: Micro food processing units
Benefit: 35% credit-linked capital subsidy, up to ₹10 lakh per unit. Own contribution at least 10%.

Central

For: Micro and small units with Udyam registration
Benefit: Guarantee cover on loans up to ₹10 crore so banks can lend without collateral; an annual guarantee fee applies.

State

For: Units in the state where they are set up
Benefit: Capital investment subsidy and often interest subvention, duty relief and extra support for priority groups and districts.

Summarised from scheme guidelines as of October 2026. Rates and limits change; always check the current official notification.

MSEFC quick guide

Who: Udyam-registered micro and small manufacturers and service providers
When: payment not made within the agreed period, capped at 45 days from acceptance (15 days without an agreement)
What you can claim: the principal plus compound interest at three times the RBI bank rate, with monthly rests
Where: the MSE Facilitation Council of your state, through the MSME Samadhaan portal
How: conciliation first, then arbitration and a binding award

45 daysmaximum credit period for MSE suppliers

Checklists

You don't need all of this for the first call. Having it ready later saves the most time.

Glossary

DPR: Detailed Project Report: the full description of a project's cost, finance and projected financials.
CMA data: Credit Monitoring Arrangement: the standard set of financial statements and projections banks use to assess loans.
DSCR: Debt Service Coverage Ratio: how comfortably the project's cash flow covers loan repayments.
Promoter margin: The part of the project cost the promoter contributes from their own funds.
Means of finance: How the project cost is funded: own funds, term loan, subsidy and others.
Udyam: The government's free registration for micro, small and medium enterprises.
CGTMSE: Credit Guarantee Fund Trust for Micro and Small Enterprises, which guarantees collateral-free loans.
MSEFC: Micro and Small Enterprises Facilitation Council, which decides delayed-payment cases under the MSMED Act.
CTE / CTO: Consent to Establish and Consent to Operate, issued by the State Pollution Control Board.
Margin money: The subsidy component under PMEGP, adjusted against the bank loan.