SMEs are the backbone of Indian economy. however, obtaining funding for SMEs with reasonable interest rates, while providing collateral security can be difficult. Fortunately, there are several government schemes under which small and medium businesses can obtain short-term and long-term loans with lower interest rates from banks like SBI, Bank of Baroda, Andhra Bank, etc. One such scheme is the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme, under which banks can lend up to Rs.1 crore loan without requiring collateral security. Similarly, the Small Industries Development Bank of India offers several schemes to facilitate the growth of SMEs in India.