MSME Government Schemes

What’s in store for you

Working Capital for Growth

Know More
Indian oil card1

Types of MSME Government Schemes

MSME Government Schemes

AIF

  • The Agriculture Infrastructure Fund (AIF) Scheme offers a credit guarantee to support post-harvest and farm-gate infrastructure development in agriculture and related sectors. This initiative helps enhance agricultural productivity and reduce losses.
  • Under the AIF scheme, businesses can avail loans of up to ₹7.5 crore with an interest subvention of up to 3% for a maximum of seven years. Additionally, borrowers benefit from a moratorium period of 6 to 24 months on loan repayments.
  • The scheme finances various projects, including post-harvest infrastructure, community farming facilities, transportation, and technology. It aims to foster growth in the agricultural value chain.
Apply Now Know More
kisanDhan

CGSS

  • The Credit Guarantee Scheme for Startups (CGSS) provides collateral-free credit guarantees for Indian startups, enabling them to access funding more easily.
  • Under the scheme, startups can avail guarantee coverage of up to ₹10 crore with a nominal annual fee of 2%, offering a cost-effective financing option.
  • All DPIIT-recognised startups are eligible to apply for the CGSS. This ensures broad accessibility and support for innovation-driven enterprises.
Know More
kisanDhan

CGTMSE

  • The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides unsecured loans without collateral or third-party guarantees, supporting micro and small enterprises' financing needs.
  • Eligible businesses in manufacturing and services sectors can avail guarantees of up to ₹5 crore, with only a nominal guarantee fee applicable.
  • This scheme ensures easier access to credit, empowering small enterprises to grow and contribute to economic development.
Know More
WYP_285_25 Website New Adapts 6

PMEGP

  • The Prime Minister’s Employment Generation Programme (PMEGP) provides loans for emerging micro businesses with a capital subsidy ranging from 15% to 35%.
  • The subsidies are applicable for manufacturing projects up to ₹50 lakh and service sector projects up to ₹20 lakh, encouraging entrepreneurship across diverse sectors.
  • New entrepreneurs can access PMEGP benefits along with CGTMSE guarantee cover. They can enjoy collateral-free financial support to kickstart their ventures.
Apply Now Know More
kisanDhan

PM FME

  • The Prime Minister Formalisation of Micro Food Processing Enterprises (PM FME) scheme offers financial support through grants linked to credit, interest subsidies, and seed funding for small-scale food processing units.
  • It provides grants for capital investments and shared infrastructure development to promote sectoral growth and modernisation.
  • Beneficiaries enjoy extended repayment periods of up to 7 years, with a grace period ranging from 6 months to 2 years, ensuring flexible and sustainable financial management.
Apply Now Know More
WYP__25_MSME Loan Digital Banner W518xH375px

Stand Up India Scheme

  • The Stand Up India Scheme offers working capital and term loans from ₹10 lakh to ₹1 crore, targeting SC/ST and women entrepreneurs for new business ventures. It provides financing of up to 85% of the project cost, easing the capital burden on entrepreneurs.
  • By focusing on these demographics, the scheme promotes inclusivity and innovation in entrepreneurship. It contributes to economic growth and diversity in the business landscape.
Apply Now Know More
kisanDhan

PM Mudra Yojana

  • The Pradhan Mantri Mudra Yojana offers tiered loans tailored to different business needs, specifically targeting non-farm enterprises in manufacturing, trading, and services. This scheme focuses on businesses with credit requirements of less than ₹10 lakh, ensuring inclusive access to finance.
  • Entrepreneurs can choose from three loan categories based on their micro unit's growth stage: Shishu (up to ₹50,000), Kishor (from ₹50,000 to ₹5 lakh), and Tarun (from ₹5 lakh to ₹10 lakh). This flexibility allows businesses to select financing that aligns with their specific funding requirements.
Apply Now Know More

MSME Government Schemes Highlights

Access to Credit

  • MSME Government Schemes facilitate easy access to loans and financial support for small businesses.

Skill Development Programs

  • These initiatives offer training and skill enhancement programs to improve the capabilities of entrepreneurs and their workforce.

Technology Support

  • The schemes provide assistance for upgrading technology and modernising operations, helping MSMEs improve their competitiveness in the market.

msme-summary-benefits-one.jpg

More About MSME Government Schemes

The features of the government scheme for MSME vary with the product: 

AIF 

  • Credit guarantee scheme supporting post-harvest and farm-gate infrastructure in agriculture and related sectors. 

  • Loans up to ₹7.5 crore accessible through the AIF scheme. 

CGSS

  • Credit guarantee scheme without collateral for Indian startups. 

  • Guarantee coverage up to ₹10 crore with a nominal fee of 2% per annum. 

CGTMSE 

  • Unsecured loans without collateral or third-party guarantees for micro and small enterprises. 

  • Guarantee up to ₹5 crore with only a nominal guarantee fee. 

PMEGP 

  • Loans for emerging micro businesses with a 15% to 35% capital subsidy. 

  • Subsidies apply to manufacturing projects up to ₹50 lakh and service sector projects up to ₹20 lakh. 

PM FME 

  • Financial support through grants linked to credit, interest rate subsidies and seed funding for small-scale food processing units. 

  • Grants linked to credit for capital investments and shared infrastructure development are also accessible. 

Stand Up India Scheme 

  • Offers working capital and term loan options ranging from ₹10 lakh to ₹1 crore. 

  • Targets SC/ST and women entrepreneurs for new business ventures. 

PM Mudra Yojana 

  • Offers graduated loans (Shishu, Kishor, Tarun) suited to various business requirements. 

  • Ensures accessible credit for non-farm micro-enterprises in manufacturing, trading and services needing less than ₹10 lakh. 

The key benefits of government schemes for business are: 

  • Favourable Terms: Govt. MSME loans often come with lower interest rates and longer repayment periods, reducing the financial burden on MSMEs. 

  • Subsidised Interest Rates: Some government loans offer subsidised interest rates, making borrowing more affordable for small businesses. 

  • Collateral Support: MSME govt. loan schemes may provide collateral-free or reduced collateral requirements, easing access to finance for MSMEs with limited assets. 

  • Financial Inclusion: These government MSME loans promote financial inclusion by extending credit to MSMEs that may not qualify for traditional bank loans due to a lack of credit history or collateral. 

The most popular MSME Government Loan Schemes are: 

  • AIF 

  • CGSS 

  • CGTMSE   

  • PMEGP 

  • PM FME 

  • Stand Up India Scheme 

  • PM Mudra Yojana

You can apply for a Government Subsidy Loan for your business by following these steps on our website: SME-> BORROW-> MSME Government Schemes.  

*The Most Important Terms and Conditions for each of our banking offerings features all the specific terms and conditions that govern their use. You must go through it thoroughly to fully understand the terms and conditions applicable to any banking product you choose.  

Frequently Asked Questions

A Govt Loan Scheme for business is a financial assistance programme specifically designed to provide loans at favourable terms to Micro, Small and Medium Enterprises to support their growth and development. 

The interest rate varies with different government-sponsored schemes. 

The tenure varies with different SME government schemes. 

Yes, start-ups can apply for MSME Government Loans. Various government schemes, such as Pradhan Mantri MUDRA Yojana (PMMY) and the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE), provide loans to start-ups.

Yes, MSMEs can avail loans under multiple schemes within the MSME framework, subject to meeting the respective eligibility criteria and the financial institution’s regulations.

The Indian government offers a diverse range of MSME schemes and business loans catering to different business sectors, stages, and financial needs. Specific schemes cater to sectors like manufacturing, services, or coir.

MSMEs can improve their chances of loan approval by maintaining good credit history, preparing comprehensive business plans, demonstrating strong cash flows and providing collateral or guarantees where required.