Government Schemes & MSME Funding, Explained Simply
PMEGP, MUDRA, Stand-Up India and CGTMSE can unlock capital subsidies and collateral-free credit for your business — if you know how to navigate them. We help with exactly that.
What these schemes actually offer
Each program targets a different stage or type of business. Here's a plain-language overview — exact percentages and limits vary by category, location and scheme updates, so we confirm current terms during your consultation.
Prime Minister's Employment Generation Programme
A capital subsidy scheme for setting up new micro-enterprises in manufacturing or services, with the subsidy percentage varying by applicant category and location.
Pradhan Mantri Mudra Yojana
Collateral-free loans for small businesses, split into tiers based on the loan amount and stage of the business.
For women and SC/ST entrepreneurs
Bank loans for setting up a new greenfield enterprise, reserved for women and SC/ST first-time entrepreneurs.
Credit Guarantee Fund Trust for Micro and Small Enterprises
A credit guarantee cover that lets eligible small businesses access loans without pledging collateral, backed by the trust rather than the borrower's assets.
Who typically qualifies
- Applicant is 18 years or older
- No existing default on record with a bank or NBFC
- Business activity falls under an eligible sector for the chosen scheme
- Basic KYC and project documentation can be provided
Documents you'll likely need
- PAN card and identity/address proof
- A project report or business plan
- Udyam (MSME) registration, where applicable
- Category certificate, if applying under a reserved quota
Common questions
Do scheme subsidy percentages and loan limits change?
Yes — government schemes are revised periodically. We confirm the current terms for your specific case rather than relying on numbers that may be outdated.
Can an existing business apply, or is this only for new units?
It depends on the scheme. Some, like PMEGP, are largely for new units with limited provision for expansion loans; others support existing businesses too. We help you identify which applies.
What if I have an existing loan default?
An active default typically disqualifies an application until it's resolved or regularized with the lender and reflected on your credit report.
Is collateral always required for business loans?
Not necessarily — schemes like CGTMSE exist specifically to provide credit guarantee cover so eligible businesses can avoid pledging collateral, subject to guarantee fees and conditions.
Not sure which scheme fits your business?
Tell us about your business and we'll point you to the options worth pursuing — no obligation.