Funding & Schemes

Access to Bank Credit has been a major challenge for micro, nano and solo enterprises as well as new startup enterprises which could be due to multiple reasons including the small ticket size of individual loans, cost of credit delivery, perception of high risk and lack of local knowledge among bankers, among many other reasons. Timely and adequate access to bank credit is a key requirement for enterprises to flourish in the state and Credit Enhancement measures such as First Loss Default Guarantee

(FLDG) / handholding of entrepreneurs would enhance the flow of credit to the desired sectors and entrepreneur segments.

PRIME will facilitate this access to bank loans and at the same time develop new financial vehicles to also fund such entrepreneurs that work on promising, innovative products and services that have the potential to create a large-scale impact. Due to the novelty and innovation-component, banks usually consider those kinds of businesses to be too risky to be funded. Hence, a dedicated innovation-based PRIME fund has been developed to support those entrepreneurs.