For small businesses with turnover up to 30-40 Lakhs, it may be worthwhile to give loans under Mudra Scheme. This is also one of the Credit Guarantee Scheme, where loans up to 10 Lakhs is guaranteed directly by Govt of India.
Under Mudra Loan both term loans and OD limits are available. The ROI of Mudra Loan is higher than CGTMSE Loans but where the business size is smaller, we recommend to do such loans under Mudra Scheme.