The Indian government offers several loan schemes designed specifically for small businesses, startups, and self-employed individuals. These schemes provide favorable terms that regular commercial loans cannot match.
Prime Minister Employment Generation Programme provides loans up to 25 lakhs for manufacturing and 10 lakhs for service businesses. Subsidies of 15-35 percent on project cost make this highly attractive for new entrepreneurs.
Loans up to 10 lakhs under three categories: Shishu up to 50,000, Kishore up to 5 lakhs, and Tarun up to 10 lakhs. No collateral required. Available through banks, NBFCs, and microfinance institutions.
Loans between 10 lakhs and 1 crore for SC, ST, and women entrepreneurs. Each bank branch must provide at least one such loan, ensuring availability and accessibility across the country.
This scheme provides collateral-free credit up to 2 crores for micro and small enterprises. The government guarantees the loan, eliminating the need for personal collateral from the entrepreneur.
Visit the Udyami Mitra portal or approach banks directly with your business plan. District Industries Centers also guide applicants through the process. Documentation requirements are simplified compared to regular commercial loans.
Government schemes are designed to promote entrepreneurship. If you have a viable business idea, explore these options before approaching commercial lenders. The subsidies and guarantees can make a significant difference in your business viability.