4 Advantageous MSME Schemes for Small Businesses

April 3, 2023
Updated on

The Ministry of Micro, Small, and Medium Enterprises (MSME) implements various programs and MSME schemes to develop and promote MSMEs across the country. The Government of India has been extremely proactive in ensuring that all of the benefits of these MSME schemes reach the respective parties. Various allocations (in addition to the many MSME schemes) have been made under the Atmanirbahar Bharat Package to provide financial aid to the MSME sector. 

Some of the most important announcements include:

  • Automatic loans of Rs. 3 lakh crore for MSMEs to buy raw materials, meet operational liabilities, and restart businesses.
  • Revision of the MSME definition to maximize benefits to the sector.
  • To create attractive opportunities for domestic players, global tenders are prohibited in procurements of up to Rs. 200 crores.
  • The government and public sector units (PSUs) must clear MSME debts within 45 days.

However, it's a known fact that government MSME schemes usually take a long time to process and might be difficult to qualify for. However, there's no reason to worry as MSMEs have access to several other options today.

Providing MSMEs with reliable access to efficient formal credit has long been difficult due to:

  • Lack of tailor-made products to suit the borrower and lender risk profiles
  • Long loan turnaround times
  • Collateral requirement and guarantees

NBFCs have been major credit providers to MSMEs, particularly at the smaller end. Along with MSME schemes, small businesses can now greatly benefit from new business models, such as the evolution of fintech lenders seeking to use innovative approaches to credit underwriting and offer products with a shorter turnaround time.

At Kinara Capital, we make sure MSMEs have easier access to capital to fund business expenses. We take a holistic view of the borrower's profile and assist them in financing their growth or short-term, as well as long-term financial needs as and when they require it.

Grow your MSME with collateral-free business loans

Why Choose Kinara Capital?


You can avail of collateral-free business loans from Rs. 1 lakh to Rs. 30 lakhs. Unlike with other financial institutions or banks, you can borrow money from us without the need for security or collateral.

Quicker Disbursals 

At Kinara Capital, you can avail of business loans in a timeframe as short as 24 hours. The whole process can be completed online, so you can meet your immediate fund requirements without waiting. Begin with our 1-minute online eligibility check and take the application process forward by entering your details and uploading the necessary documents. Alternatively, our loan officer will contact you to guide you through the process. 

Minimum Documentation

We require minimum and basic documentation from the borrower's end. Since everything can be carried out online, you can easily upload your personal and business documents from the comfort of your home. 

Personalized Products

NBFCs are more proactive in innovating financial products than banks because they are more flexible in terms of lending. This allows MSMEs to facilitate their growth and expansion in an extremely prudent manner. They fine-tune their loan products based on their target customers. 

At Kinara Capital, we offer credit options, including working capital loans, asset purchase loans, and HerVikas loans (tailor-made especially for women-owned businesses).

Anyone who has ever taken out a loan from a bank knows how long it takes to process a loan and how much paperwork is involved. MSMEs, which are typically small businesses based on local requirements, handicrafts, or supplying components to larger corporations, have it even more complicated because their funding needs are often more urgent, and they operate on limited resources. For instance, if a small business receives a big order to fulfil, it will need more resources like raw materials or even machinery. If the business fails to manage all this within time, they might end up losing the order. In such cases, a business loan from Kinara Capital can be of big help for arranging things like raw materials and more as we ensure quick disbursals.

Kinara is today heavily investing in technology to help us reach new markets, gauge borrowers' creditworthiness, reduce documentation, and expedite the disbursement of sanctioned funds. All of this is extremely beneficial to MSME entrepreneurs, who typically spend significant amounts of time approaching banks for loans, preparing the extensive documentation required, and waiting for funds to be disbursed. Because of this lengthy procedure, MSMEs often receive funds that are too late to be of any use to them, and in some cases, are even refused a loan altogether.

So, choose Kinara Capital and kick start your growth journey today!

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