Explore government-backed credit support, invoice financing and delayed-payment
resolution mechanisms that may help businesses manage financial stress,
improve liquidity and strengthen operational resilience. ASM StratConsult LLP
helps MSMEs assess potentially relevant support options and identify the
appropriate verification and application route.
Crisis Support Schemes & Business Recovery Options
Select an option to explore its purpose, potential relevance and official resources.
Historical emergency scheme — verify current availability
ECLGS was introduced as an emergency credit-support measure during
the COVID-19 period. It enabled eligible businesses to access additional
credit through participating lenders, supported by a government-backed
guarantee under the applicable scheme phases.
What businesses should know
The scheme operated through multiple phases with different eligibility conditions and coverage.
It was designed to help qualifying businesses manage liquidity and operational requirements during the disruption.
Historical eligibility and guarantee terms do not establish that fresh applications are currently available.
Businesses facing present-day cash-flow pressure should ask their
lender about currently available working-capital facilities,
applicable credit-guarantee options and any successor programmes.
CGSSD was introduced to support eligible stressed MSMEs through
subordinate debt extended to promoters, subject to the scheme's
prescribed eligibility and guarantee conditions. The promoter's
contribution could then be infused into the eligible business as
equity or quasi-equity, as permitted by the framework.
What applicants should verify
Whether fresh applications are currently accepted under the relevant scheme or any successor arrangement.
Whether the enterprise, promoter and financial position meet the prescribed criteria.
Applicable lender participation, loan terms, guarantee coverage and repayment obligations.
This is not a general-purpose grant for every business in financial
difficulty. A business should obtain confirmation from an eligible
lender and check the latest official scheme documents before relying
on this route.
The SRI Fund was established as an equity-funding initiative intended
to help eligible MSMEs with growth potential access capital through
a fund-of-funds structure. Under this model, capital is channelled
through participating investment funds rather than provided as a
standard direct government grant to every applicant.
Potential relevance
MSMEs seeking growth or expansion capital rather than conventional debt alone.
Businesses with a credible growth plan, financial information and an investment-ready proposition.
Enterprises willing to evaluate equity investment and the associated ownership and governance terms.
Equity funding is different from a loan, subsidy or credit guarantee.
Investment depends on the mandate and due diligence of the participating
fund. Verify the current fund structure, participating investors and
available investment route before approaching the programme.
CGTMSE provides guarantee cover to eligible member lending institutions
for qualifying credit facilities extended to micro and small enterprises.
It can help eligible businesses access credit without conventional
collateral or third-party guarantees, subject to the scheme and
lender's requirements.
How it can help
Eligible working-capital and term-loan facilities can be considered under the applicable guarantee framework.
The business applies to a participating lender, which assesses creditworthiness and repayment capacity.
The lender determines whether the facility is suitable for guarantee coverage.
Guarantee coverage, fees, exclusions and facility limits depend on the current scheme parameters.
CGTMSE is an ongoing credit-guarantee mechanism, but it does not
directly lend to businesses or guarantee automatic approval. The
lender retains responsibility for its credit decision.
TReDS is an electronic platform mechanism that enables eligible
MSME suppliers to obtain financing against accepted trade receivables
from corporate buyers and other permitted entities. Receivables can
be financed by participating banks and other eligible financiers
under the platform's rules.
How the process generally works
An eligible MSME supplier registers on a TReDS platform.
The supplier's invoice or bill is uploaded and accepted by the buyer under the applicable process.
Financiers bid to discount the receivable, where permitted.
The supplier evaluates the financing offer and receives payment according to the transaction terms.
TReDS can help reduce the wait for payment on eligible invoices.
Registration, buyer participation, invoice acceptance, financing
offers and platform charges affect the outcome. It is not a
government grant and does not resolve every unpaid invoice.
MSME Samadhaan is the Ministry of MSME's delayed-payment monitoring
portal for eligible micro and small enterprise suppliers. It provides
a route for filing delayed-payment applications under the applicable
provisions of the Micro, Small and Medium Enterprises Development Act.
When it may be relevant
An eligible micro or small enterprise has supplied goods or services and payment is overdue.
The supplier has the relevant Udyam registration and transaction documentation.
The business has invoices, purchase orders, delivery or service records and correspondence supporting its claim.
The supplier needs to explore the prescribed Micro and Small Enterprises Facilitation Council (MSEFC) process.
The applicable legal framework, limitation issues, evidence and
dispute procedure should be checked for the individual case.
Online filing does not guarantee recovery or immediate settlement.
Medium enterprises should verify their eligibility before using
a route specifically intended for micro and small enterprises.
Share your business profile, current challenge, pending receivables
or funding requirement. ASM StratConsult LLP can help you assess
potentially relevant credit-support mechanisms, delayed-payment
routes and documentation requirements for your situation.
