Indian government loans & credit guarantee schemes.
Collateral-free working capital, credit guarantees, soft loans, and refinance facilities for startups and MSMEs. Most schemes here are administered through banks and NBFCs — apply via JanSamarth or direct at the lender.
MUDRA (PMMY) is the workhorse for collateral-free working capital up to ₹20 L. Four tiers: Shishu (≤₹50K), Kishore (≤₹5 L), Tarun (≤₹10 L), Tarun Plus (₹10-20 L). 8-12% p.a., 0.25% concession for women.
CGTMSE guarantees bank loans up to ₹10 Cr for Udyam-registered MSEs — banks recover 75-85% of default loss, so they can lend without collateral. CGSS is the equivalent for DPIIT-recognised startups: guarantee on loans up to ₹20 Cr (doubled from ₹10 Cr in May 2025).
For larger MSME term loans, SIDBI SMILE covers ₹25 L – ₹2 Cr for manufacturing. Stand-Up India offers composite loans ₹10 L – ₹1 Cr for SC / ST and women borrowers. Agri Infrastructure Fund provides 3% interest subvention up to ₹2 Cr for post-harvest infrastructure.
Schemes that apply
15 schemes
Startup India Seed Fund Scheme
Up to ₹20 L grant for PoC/prototype + up to ₹50 L convertible/debt for market entry. Apply to up to 3 incubators. ₹605+ Cr deployed to 3,400+ startups.
Credit Guarantee Scheme for Startups
Credit guarantee on loans up to ₹20 Cr (doubled from ₹10 Cr in May 2025). Cover 85% up to ₹10 Cr, 75% above. AGF reduced to 1% p.a. for 27 Champion Sectors.
MUDRA — Pradhan Mantri MUDRA Yojana
Collateral-free working-capital ladder. 4 tiers from Shishu (≤₹50K) to Tarun Plus (₹10-20L). 8-12% p.a., 0.25% concession for women. ~67% of loans go to women.
Stand-Up India
Composite loan ₹10 L–₹1 Cr for SC/ST and women first-time entrepreneurs. Each SCB branch mandated to fund at least one SC/ST and one woman borrower. 7-yr tenure, 18-mo moratorium.
PMEGP — PM's Employment Generation Programme
New-unit setup loan with 15-35% margin money subsidy. Special category (women, SC/ST, OBC, NER, hilly) gets 25% urban / 35% rural. Works for shops, manufacturing, services.
CGTMSE — Credit Guarantee Trust
Collateral-free loan guarantee up to ₹10 Cr. AGF as low as 0.37% p.a. Cover 75-85% of bank's loss. Retail and services now eligible.
Technology Development Board
Soft loans (up to 50% project cost) or equity at concessional rates ~5-9%. Suited for hardware/IP-heavy ventures.
NIDHI-SSS — Seed Support Scheme
Up to ₹1 Cr per startup via incubator as loan, equity, or equity-linked. NRI-friendly.
Agri Infrastructure Fund
₹1 lakh Cr corpus. 3% interest subvention up to ₹2 Cr loan. 6-year tenure inclusive of 2-year moratorium.
Odisha Startup Growth Fund
OSGF managed via SIDBI. Heavy push on rural innovation, agritech, MSME-linked enterprises.
Ubharte Sitaare — Export Champions
Up to ₹25 Cr equity + debt mix from EXIM Bank and SIDBI for export-ready startups.
SIDBI SMILE / STAR / TIFAC SRIJAN
SIDBI's direct lending suite: SMILE (₹25 L-2 Cr for manufacturing), STAR, TIFAC SRIJAN, plus venture debt via subsidiaries.
NABARD Refinance + Interest Subvention
Agri-MSME refinance backbone. 3-6% interest subvention through banks. PODF for FPOs.
VC Fund for SC/ST Entrepreneurs
IFCI Venture-managed ₹500 Cr corpus, expanded with ₹2,000 Cr term loan window for first-time SC/ST women entrepreneurs.
Mahila Udyam Nidhi
Soft loan up to ₹10 L specifically for women starting / scaling small-scale industries or service businesses. Concessional rates, longer repayment.
Frequently asked questions
What is the difference between CGTMSE and CGSS?+
CGTMSE covers loans to Udyam-registered Micro and Small Enterprises (up to ₹10 Cr). CGSS covers loans to DPIIT-recognised startups (up to ₹20 Cr after the May 2025 expansion). Both are guarantee schemes — they enable banks to lend without collateral by absorbing 75-85% of default risk.
What is the interest rate on MUDRA loans?+
Typically 8-12% p.a. depending on the lender, borrower profile, loan tier, and tenure. Women borrowers get a 0.25% concession. PSBs are usually cheapest; NBFCs are faster but pricier. Compare across lenders on the JanSamarth portal.
Can I get a government startup loan without a business plan?+
Generally no — even MUDRA Shishu requires basic project information and KYC. For larger tiers (Kishore, Tarun, Stand-Up India), banks typically require a project report, financial projections, and proof of business activity. Free templates are available on the JanSamarth portal.