The Government Schemes of India has launched various schemes to support small businesses and startups by providing financial assistance, subsidies, and other benefits. These schemes help entrepreneurs start, expand, and sustain their businesses. Below are the top 10 government schemes that can help small businesses and startups grow in India.
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1. Pradhan Mantri MUDRA Yojana (PMMY)
The Micro Units Development and Refinance Agency (MUDRA) scheme provides collateral-free loans up to ₹10 lakh to small businesses and startups in the manufacturing, trading, and service sectors. The loans are categorized into three types:
| Loan Category | Loan Amount |
|---|---|
| Shishu | Up to ₹50,000 |
| Kishor | ₹50,001 to ₹5 lakh |
| Tarun | ₹5 lakh to ₹10 lakh |
- Eligibility: Small businesses, shopkeepers, vendors, self-employed individuals, MSMEs
- Where to Apply: Banks, NBFCs, Regional Rural Banks (RRBs), Microfinance Institutions (MFIs)
- Benefits: No collateral required, low interest rates, quick processing
2. Startup India Scheme
The Startup India initiative aims to promote startups by offering tax benefits, funding support, and simplified regulations. Startups recognized under this scheme receive the following benefits:
- 3 years of tax exemption
- Fast-tracked patent applications with an 80% rebate on filing fees
- Self-certification compliance for various laws
- Government Schemes funding support through the Fund of Funds for Startups (FFS)
- Eligibility: Startups must be less than 10 years old, have an annual turnover of less than ₹100 crore, and must be working towards innovation or improvement of products and services.
- Where to Apply: www.startupindia.gov.in
3. Stand-Up India Scheme
This scheme provides loans from ₹10 lakh to ₹1 crore to SC/ST and women entrepreneurs to start a manufacturing, service, or trading business.
- Eligibility:
- At least 51% of the shareholding and control should be with SC/ST or a woman entrepreneur
- The business must be a greenfield enterprise (newly established)
- Where to Apply: Scheduled Commercial Banks
- Benefits: Low-interest rates, collateral-free loans, and repayment period of up to 7 years
4. Prime Minister’s Employment Generation Programme (PMEGP)
How PMEGP Yojana Can Help You Start Your Own Business ?
PMEGP is a credit-linked subsidy scheme that helps micro-enterprises by offering subsidized loans up to ₹50 lakh for manufacturing businesses and ₹20 lakh for service businesses.
| Category | Urban Subsidy (%) | Rural Subsidy (%) | Beneficiary Contribution |
|---|---|---|---|
| General Category | 15% | 25% | 10% |
| SC/ST/OBC/Minorities, Women, Ex-Servicemen | 25% | 35% | 5% |
- Eligibility: Entrepreneurs above 18 years with at least an 8th standard education
- Where to Apply: KVIC, District Industries Centre (DIC), and banks
- Benefits: Government Schemes subsidy, no collateral for loans up to ₹10 lakh
5. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE)
This scheme provides collateral-free credit up to ₹2 crore to micro and small enterprises (MSEs). It is backed by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Eligibility: MSMEs and new businesses in manufacturing and service sectors
- Where to Apply: Public and private sector banks
- Benefits: Easy access to credit, collateral-free loans, and reduced lending risk for banks
6. Pradhan Mantri Formalization of Micro Food Processing Enterprises (PM FME) Scheme
This scheme aims to support food processing businesses by providing subsidized loans, training, and branding support.
- Eligibility: Individual entrepreneurs, Farmer Producer Organizations (FPOs), and self-help groups (SHGs) in the food processing sector
- Subsidy: 35% of the total project cost (up to ₹10 lakh)
- Where to Apply: www.pmfme.mofpi.gov.in
- Benefits: Credit-linked subsidy, marketing and branding support, skill training
7. SIDBI Make in India Soft Loan Fund for MSMEs (SMILE)
The Small Industries Development Bank of India (SIDBI) provides soft loans under SMILE to help MSMEs expand and modernize their businesses.
- Loan Amount: ₹10 lakh to ₹25 crore
- Eligibility: New and existing MSMEs in the manufacturing and service sectors
- Where to Apply: SIDBI offices and partner banks
- Benefits: Lower interest rates, long repayment periods, and focus on industrial development
8. Udyogini Scheme for Women Entrepreneurs
This scheme provides subsidized loans up to ₹3 lakh to women entrepreneurs from economically weaker sections.
- Eligibility: Women entrepreneurs aged 18 to 55 years with an annual family income of less than ₹1.5 lakh
- Where to Apply: Public and private sector banks
- Benefits: Interest-free loans, lower processing fees, and government Schemes subsidies
9. Coir Udyami Yojana (CUY)
This scheme promotes coir-based industries by providing financial assistance to micro and small enterprises involved in coir production and processing.
- Loan Amount: 75% of the project cost (up to ₹10 lakh)
- Eligibility: Entrepreneurs involved in coir industry
- Where to Apply: Coir Board, District Industries Centre (DIC), and banks
- Benefits: Financial support for coir-based businesses, employment generation, and subsidy up to 40% of the project cost
10. MSME Business Loans in 59 Minutes
This is a digital loan approval scheme where MSMEs can get loans up to ₹5 crore in just 59 minutes through an online application process.
- Eligibility: Existing and new MSMEs
- Where to Apply: www.psbloansin59minutes.com
- Benefits: Quick loan processing, minimal paperwork, no collateral required for small loans
The Indian government Schemes has introduced several schemes to promote entrepreneurship and boost small businesses and startups. These schemes provide financial support, subsidies, collateral-free loans, and technical assistance to help businesses grow. Entrepreneurs should carefully choose the scheme that best suits their business needs and apply through the respective portals or financial institutions.
If you need help selecting the right scheme for your business or preparing a business plan for loan applications, feel free to ask!
