Starting or growing a business in India can be tough, especially when funds are tight. But here’s the good news—India’s government has rolled out several business loan schemes to support budding entrepreneurs, MSMEs, and underrepresented groups. Whether you’re a small trader, a first-time woman entrepreneur, or a startup looking for a technology upgrade, there’s likely a scheme tailored just for you.
Let’s walk through the most popular business loan schemes in 2025—what they offer, who they’re for, and how you can apply.
1. Pradhan Mantri Mudra Yojana (PMMY)
- Target: Non-corporate, non-farm micro and small enterprises in manufacturing, trading, or services
- Loan Range: ₹50,000 to ₹20 lakh (Shishu, Kishore, Tarun, Tarun Plus)
- Benefits: Collateral-free, women-focused (68% beneficiaries), easy documentation
- Apply via: Banks or UdyamiMitra / JanSamarth
2. Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)
- Target: New and existing MSMEs (excluding agriculture and education)
- Loan Range: Up to ₹5 crore
- Benefits: Up to 85% credit guarantee, lower fees for women/aspirational districts
- Apply via: Banks or NBFCs; lender initiates CGTMSE cover
3. Prime Minister’s Employment Generation Programme (PMEGP)
- Target: Individuals 18+, SHGs, co-ops, and trusts starting new businesses
- Loan Range: Up to ₹50 lakh (manufacturing) / ₹20 lakh (services)
- Subsidy: 15%–35% based on location and category
- Apply via: KVIC portal
4. MSME Loan Scheme in 59 Minutes
- Target: GST-registered and IT-compliant MSMEs
- Loan Range: ₹1 lakh to ₹5 crore
- Highlights: In-principle approval in 59 minutes, minimal paperwork, CGTMSE coverage
- Apply via: PSB Loans in 59 Minutes
5. Stand-Up India Scheme
- Target: Women and SC/ST first-time entrepreneurs
- Loan Range: ₹10 lakh to ₹1 crore
- Perks: Handholding support, greenfield project funding, CGFSIL guarantee
- Apply via: Stand-Up Mitra portal or your bank
6. Credit Linked Capital Subsidy Scheme (CLCSS)
- Target: MSEs in approved sub-sectors upgrading technology
- Loan Limit: Up to ₹1 crore (15% subsidy, up to ₹15 lakh)
- Apply via: Through banks and the MSME portal
7. SIDBI Loan Schemes for MSMEs
- Target: New and existing MSMEs across industries
- Popular Schemes: SMILE, SPEED, STAR, TWARIT, AROG, and more
- Loan Range: ₹10 lakh to ₹50 crore
- Apply via: SIDBI portal
Quick Comparison Table
| Scheme | Target | Loan Amount | Highlights |
|---|---|---|---|
| PMMY | Small entrepreneurs | ₹50k–₹20L | No collateral, tiered approach |
| CGTMSE | MSMEs | Up to ₹5Cr | 85% guarantee cover |
| PMEGP | New businesses | ₹20L–₹50L | 15%–35% subsidy |
| 59 Min Loan | Registered MSMEs | ₹1L–₹5Cr | Quick digital approval |
| Stand-Up India | SC/ST & Women | ₹10L–₹1Cr | Greenfield funding + mentoring |
| CLCSS | MSEs upgrading tech | Up to ₹1Cr | 15% subsidy on tech |
| SIDBI | All MSMEs | ₹10L–₹50Cr | Custom loan products |
Tips to Get Your Loan Approved
- Have a detailed business plan ready
- Maintain a good credit score and loan history
- Ensure accurate, complete documentation
- Be clear about the loan amount and usage
- Follow up with banks after submission
Conclusion
Government-backed business loans are a lifeline for thousands of Indian entrepreneurs. Whether you’re building a food startup in Bengaluru or a tailoring unit in Patna, these schemes can help turn your vision into a profitable venture. So explore your options, choose wisely, and apply with confidence!
