Here we’ll discuss the Government schemes for startups for Civil Engineering Services or Businesses for which you can take loans or get the benefits of government schemes.
How a Civil Engineer can take a loan and start a NEW business or Service?
We can categorize these under the small business or Bigger business
- Start a Construction Consulting Business
- Start an Interior Design Services
- Drainage Design Services
- Start a Business as a construction drawing solutions
- Start a Tiny House (Mud House/Bamboo House) Building Business
- Start a Construction Equipment rental company
- Start a surveying business
- Start a Business as a roofing contractor
- Sell construction equipment such as Heavy-Duty Vehicle and Engineering equipment and rent them to contractors.
- Property Development Business
- Start a Project management tool for Civil Contracts
- Construction YouTube Channel
- Aet-up a Chimny/Civil Equipment Repair Business
- Plumbing Business
- Civil Engineering Practical Knowledge Online Course
1. Pradhan Mantri MUDRA Yojana (PMMY)
If you want to grow your Construction business, you’ll need an inclusive, sustainable, and value-based entrepreneurial culture. For this, you should take loans from the authoritative government.
Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015, for
Government schemes for business startups Including Civil Engineers.
It provides loans up to 10 lakh to small/micro enterprises.
As a Civil Engineer, you will need loans for the following stages of your business or service
- Funding needs of the beneficiary micro unit/entrepreneur
- For the next phase of growth.
- the stage of growth/development for the Existing business.
How can one apply for loans
These loans are given by following methods
- Lending institutions such as Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.
- Also, you can apply online through this portal www.udyamimitra.in.
The government has created three products namely under PMMY-
| Name | Loans Funding |
| Shishu | Covering Loans up to 50,000/- Without any Processing Fees |
| Kishore | Covering Loans above 50,000/- and up to 5 Lakhs |
| Tarun | Covering Loans above 5 Lakhs and up to 10 Lakhs. To take loans for Further development of Civil Engineering Business. |
Warning-Here, no agents or middlemen are engaged for availing Mudra Loans. So, Engineers are advised to keep away from Agents/ facilitators of MUDRA/PMMY
2. PMEGP Yojana (Prime Minister’s Employment Generation Program)
This Government Scheme is mainly for the Service Sector or Opening of manufacturing Units (Brick Chimney, Cement Factory Setup, Building Material Business) where you’ll need a bigger amount.
It is considered as Best Civil Engineering Government Schemes For Civil Engineers for Applications for new units or existing units or 2nd loan.
The Civil Engineers can take loans from 20 Lakhs to 50 Lakhs.
Eligibility For PMEGP new enterprises (Units)
- Age should be 18+
- You should possess at least VIII standard pass educational qualification (Diploma/B.tech/M.tech) loan sectioning from
- Rs.10 lakh in the Manufacturing sector, and
- above Rs. 5 lakhs in the Service/ Business sector
- Assistance under the scheme is available only for new viable projects sanctioned specifically under the PMEGP.
- If you already availed of any Government Subsidy (under PMRY, REGP, PMEGP, CMEGP, or any other scheme of the Government of India or State Government), you would not be eligible.
- Projects without Capital Expenditure (Term Loan) are not eligible.
- The cost of Land can not be covered under the project cost.
- All Implementing Agencies (KVIC, KVIB, DIC, and Coir Board) can process applications in both rural as well as urban areas.
Documents Need to Apply PMEGP
Scanned Documents (up to 1 MB) required for online application are:
- Aadhaar Card No
- EID (Enrolment ID) 24 digits
- Passport Size Photo
- Highest Educational Qualification
- Project Report Summary/ Detailed Project Report
- Rural area certificate if applicable
Here, You’ll find the Sponsoring agencies where you can submit the application form.
(KVIC, KVIB, DIC) in which you want to submit the application form
Steps for Online Application
- Check Eligibility and Collect all Document
- Validate Aadhaar details online
- Registered and Generation of a User ID and Password to save for further work
- Login to the PMEGP portal to fill in further details
- Upload the required documents
- Fill up the Score Card and verify the details
- Final Submission
Note-
- Applicants can track the status of the final adjustment of the MM subsidy.
- PMEGP Applications can also be submitted physically at the nearest Implementing Agency office.
3. STANDUP India Scheme
Stand-Up India scheme is for those Civil Engineers who Belong to a Scheduled Caste (SC) or Scheduled Tribe (ST) or for Women Entrepreneurs.
This Scheme facilitates bank loans between 10 Lakhs to 1 Crore For Setting up a manufacturing unit (manufacturing plant construction for Bricks and cement), or The Civil Engineering Services.
The Loan should be repayable Within 7 years & maximum of 18 months of the Moratirum period.
Eligibility
- Only for SC/ST and/or woman entrepreneurs,
- Age must be above 18 years.
- Loans are available for only Greenfield projects (Meaning the first-time venture of the beneficiary) in civil Construction manufacturing, services.
- The Lender should not be in default to any bank.
Interest Rate
Bank’s MCLR + 3% + Tenor Premium
4. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
CGTMSE is creating a financial ecosystem and has fostered an entrepreneurial mindset across the nation over the past 22 years. This Scheme is jointly set up by the
- Ministry of Micro, Small & Medium Enterprises (MSME) + the Government of India and
- The Small Industries Development Bank of India (SIDBI)
In most cases what happens is that if you don’t have collateral security, the bank would have not given a loan to you. Only the Government can provide Loans for Greenfield projects (First Business Such as surveying business, as a roofing contractor).
It provides the availability of finance to the new-generation entrepreneurs. CGTMSE has been providing guarantee cover to collateral and/or third-party guarantee-free credit facilities.
This Loan would be good for the Civil Engineer to take loans as
- After 1 April 2023, the Guarantee coverage is extended up to 5 Cr mainly for the manufacturing unit.
- Guarantee Fees (Per Annum) are from -0.37 % to 1.35 %.
Who is Eligible
This is Only for the Micro and Small Enterprises
| Scheme | MICRO | SMALL |
| Investment in Plant & Machinery | Not more than 1 Cr | Not More than 10 Cr |
| Annual Turnover | Not more than 5 Cr | Not more than 50 Cr |
Purpose
This is valid for the Two Purposes-
Term Loan is For
-
- Machinery Loan
- Construction Loans including the Land Buying
Working Capital Finance (CC)
How to get it Easily
- Be sure to Detailed understanding of the Project- Do good research, and plan for Investment, operation, and Profit.
- Provide small collateral (If available)
- Don’t depend on any one Bank
- Explore Pvt Bank- (If you have an existing business and want to Expand)
- Seek Professional advice
- If you have the Greenfield project, it will take 1 to 3 months to section the loan amount, and in Pvt Ltd bank, 15 to 20 days.
| Loans | Collateral |
| Loans up to 10 Lakhs | Collateral FREE |
| Rs 10 Lakhs- 1 Cr Range | Collateral with Service Charges |
Rate of Interest
This government scheme for startups gives very transparent Interest of 10 % -10.5 %.
Sustainable Finance Scheme (SFS)
Suppose you have a passion for Green building design or construction material development (Perforated Bricks) which helps in energy efficiency, cost-effectiveness, and pollution-free. It is the best government scheme that you can get from the government.
Loan amount
10 Lakhs to 1.5 Cr
SIDBI (Small Industries Development Bank of India) has introduced This scheme for funding For
- Sustainable development projects
- Solar power plants, waste management, wind energy generators, small hydel power projects, and biomass gasifier plants.
- Green Building, Eco-Friendly Labeling
- Where Renewel Energy Invlove
- The Projects that contribute to energy efficiency and cleaner production.
Period- 6 months to 3 Years.
Rate of Interest
The rate of interest is applicable as per the Normal MSMEs. up to 10 %.
Conclusion-
The above Government schemes for startups in India are especially for the Civil Engineers who want to set up their businesses and are great choices. It will boost entrepreneurship culture by supporting emerging startups through the funding of different kinds of loans and subsidies. if you need more Like this article which helps you to emerge as a civil Engineering Entrepreneur comment me to give you the best advice through the next blog.
