Government-Backed Financial Support

About MUDRA Shishu Loan

MUDRA Shishu Loan is for businesses in the initial stage requiring small capital. It provides loans up to ₹50,000 with low interest rates and government-backed guarantees, ideal for micro-entrepreneurs.

Who Can Apply

• Small Traders: Shopkeepers, hawkers, vendors
• Service Providers: Repair shops, salons, tailors
• Artisans: Craftsmen, potters, weavers
• Food Businesses: Small eateries, food carts
• Agriculture Allied: Poultry, dairy, beekeeping

Key Features

• Loan up to ₹50,000
• Interest rates from 8.50% p.a.
• Tenure up to 5 years
• No collateral required
• Government-backed credit guarantee
• Minimal documentation
• Quick processing & approval
• Interest subsidy available

Eligibility

• Indian citizen aged 18-65 years
• Operational or planned business
• Non-farm income activity
• Individual or group applicants

Documents Required

• Aadhaar Card & PAN Card
• Business plan or activity proof
• Address proof (residence & business)
• Bank statements (6 months)
• Income proof or ITR
• Caste certificate (if applicable)

About MUDRA Kishor Loan

The loan supports enterprises at the growth stage, financing ₹50,000 to ₹5 Lakhs with flexible terms and government guarantees.

Suitable For

• Retail Businesses: Small shops, boutiques
• Manufacturing Units: Small production units
• Service Centers: Salons, coaching centers
• Transport: Taxi, auto-rickshaw
• Food Industry: Restaurants, bakeries

Key Features

• Loan ₹50,000 – ₹5 Lakhs
• Interest from 9% p.a.
• Tenure up to 7 years
• Collateral-free available
• Credit Guarantee Fund coverage
• Working capital and term loan
• Grace period options

Eligibility

• Indian resident aged 18-65
• Existing or new business
• Small non-corporate business
• Good credit history preferred

Documents Required

• Identity & address proof
• Business registration
• Project report/business plan
• Bank statements (1 year)
• IT returns (2 years)
• Asset purchase quotations

About MUDRA Tarun Loan

This loan is for well-established businesses for large expansion or modernization, offering loans ₹5 Lakhs to ₹10 Lakhs with flexible repayment and moratorium options.

Best Suited For

• Manufacturing Units: Factories and production plants
• Wholesale Traders: Dealers and distributors
• Service Providers: Established businesses
• Healthcare: Clinics and diagnostic centers
• Educational Institutes: Schools and coaching centers

Key Features

• Loan ₹5 Lakhs – ₹10 Lakhs
• Interest from 9.5% p.a.
• Repayment tenure up to 7 years
• Collateral may be required
• Term loan + working capital
• Moratorium period available
• Refinancing allowed

Eligibility

• Minimum 2 years established business
• Good credit and profitability
• Proper documentation

Documents Required

• Business registration & licenses
• Income Tax Returns (3 years)
• Audited financials (if any)
• Bank statements (2 years)
• Project proposal & collateral papers (if applicable)

About PMEGP

The Prime Minister's Employment Generation Programme supports new manufacturing enterprises with subsidized credit and margin money benefits.

Eligibility

• Entrepreneurs with innovative manufacturing ideas
• Micro and small manufacturing units
• Interest subsidy for general and special category beneficiaries
• Margin money subsidy up to 35% for special categories

Loan Details

• Maximum project cost ₹50 Lakhs for manufacturing
• Margin money subsidy: 15% - 35% depending on category and area
• Working capital and term loans available
• Collateral-free or minimal collateral loans

Benefits

• Low interest rates
• Quick loan processing
• Financial support for establishment and expansion
• Credit linked subsidy for trained candidates

About PMEGP Service Sector

Support for service sector startups with financial aid and margin money subsidy under PMEGP scheme.

Eligibility

• New and existing service units
• Entrepreneurs in services industry
• Margin money subsidy based on location and category
• Subsidies up to 35% for special groups

Loan Details

• Max project cost ₹20 Lakhs for service sector
• Margin subsidy between 15% and 35%
• Loans for working capital & machinery
• Minimal collateral loan options

Benefits

• Reduced interest rates
• Easy loan access
• Financial support for growth
• Credit subsidy for trained candidates

About Stand-Up India

This scheme targets SC/ST and Women entrepreneurs, providing bank loans for new greenfield enterprises in manufacturing, services and trading.

Eligibility Criteria

• SC/ST or Women entrepreneurs over 18 years
• Enterprise must be a greenfield project
• Loans between ₹10 Lakhs and ₹1 Crore
• Loans cover term loan and working capital

Key Features

• Collateral-free loan with CGTMSE guarantee
• Access to credit and handholding support
• Focus on new entrepreneurs in manufacturing, trading, service sectors

Documents Required

• ID proof and address proof
• Business plan and registration documents
• Certificates confirming SC/ST/Women status
• Bank account and financial documents

About Startup India

The Startup India initiative offers recognition, tax benefits, funding support, and incubation facilities to eligible startups, driving innovation and entrepreneurship.

Eligibility

• Innovative startups registered under DPIIT
• Up to 10 years from incorporation
• Annual turnover less than ₹100 Cr

Key Benefits

• Tax exemptions and rebates
• Funding support via SIDBI
• Incubators and accelerators access
• Fast tracked patent filing

About MSME Loan

MSME loans support business growth with credit guarantees, subsidies and priority sector benefits, offering up to ₹50 Crores for eligible enterprises.

MSME Categories

• Micro: Investment ≤ ₹1 Cr, turnover ≤ ₹5 Cr
• Small: Investment ≤ ₹10 Cr, turnover ≤ ₹50 Cr
• Medium: Investment ≤ ₹50 Cr, turnover ≤ ₹250 Cr

Key Features

• Loans up to ₹50 Cr
• Interest rates 9%-12% p.a
• Tenure up to 10 years
• Government subsidies and CGTMSE cover
• Technology upgradation funding

Eligibility

• Registered MSME/Udyam certificate holder
• Min 2 years business existence
• Positive net worth & good credit

Documents Required

• MSME/Udyam registration certificate
• Business plan & financials
• ITR & audited statements (3 years)
• Bank statements (2 years)
• Permits & licenses