The Government of India offers several loan schemes to support individuals, small businesses, farmers, students, women entrepreneurs, and marginalized communities. These loans are provided through public sector banks (PSBs), regional rural banks (RRBs), and NBFCs, often at subsidized interest rates and with minimal documentation.
1. Pradhan Mantri Mudra Yojana (PMMY)
Purpose: To provide loans to small and micro enterprises (non-corporate).
Loan Type: Term loan / Working capital
Loan Amount:
Shishu: up to ₹50,000
Kishor: ₹50,001 – ₹5,00,000
Tarun: ₹5,00,001 – ₹10,00,000
Interest Rate: As per bank norms
Collateral: No collateral required
Eligibility: Non-farm small/micro enterprises, traders, manufacturers, service units
2.Stand-Up India Scheme
Purpose: To promote entrepreneurship among women and SC/ST communities
Loan Amount: ₹10 lakh – ₹1 crore
Eligibility: SC/ST or women entrepreneurs starting new business
Collateral: As per bank policy; may be covered under CGFSI
Interest Rate: Around 8–10%
3.Kisan Credit Card (KCC) Scheme
Purpose: To provide credit to farmers for crop production & allied activities
Loan Amount: ₹10,000 to ₹3 lakh (based on cultivation cost)
Interest Rate: 7% (with 3% subsidy for timely repayment → effective 4%)
Repayment: 1 year, renewable annually
4.Pradhan Mantri Awas Yojana (PMAY)
Purpose: Affordable housing loan for urban & rural poor
Loan Amount: Based on income category (EWS, LIG, MIG-I, MIG-II)
Interest Subsidy: 3% – 6.5% under Credit Linked Subsidy Scheme (CLSS)
Repayment Tenure: Up to 20 years
5.Vidya Lakshmi Education Loan Scheme
Purpose: Single window for students to apply for multiple bank education loans
Loan Amount: Up to ₹7.5 lakh (India) / ₹20 lakh (Abroad)
Interest Rate: 8–12% (varies by bank)
Repayment: Up to 15 years
6.PMEGP(Prime Minister’s Employment Generation Programme)
Purpose: For setting up new micro-enterprises in manufacturing & service sector
Loan Amount: Up to ₹25 lakh (manufacturing) / ₹10 lakh (service)
Subsidy: 15–35% of project cost depending on category & area
Eligibility: 18+ years, minimum 8th pass, new entrepreneurs
7. MSME Loan Schemes (CGTMSE / SIDBI)
Purpose: Collateral-free loans for micro, small & medium enterprises
Loan Amount: Up to ₹2 crore
Guarantee Coverage: Up to 75–85% under CGTMSE
Interest Rate: 8–12% approx
8. Mahila Udyam Nidhi Scheme
Purpose: Financial support to women entrepreneurs in small-scale industries
Loan Amount: Up to ₹10 lakh
Interest Rate: 8–10%
Repayment: Up to 10 years
9. PM SVANidhi (Street Vendor Loan)
Purpose: Working capital loan for street vendors affected by COVID-19
Loan Amount: ₹10,000 (1st tranche), ₹20,000 (2nd), ₹50,000 (3rd)
Interest Subsidy: 7% per annum
Repayment: 1 year
10. Start-Up India Scheme
Purpose: Encourage innovation-driven entrepreneurship
Loan Amount: ₹10 lakh to ₹1 crore
Interest Rate: As per bank norms
Support: 80% patent cost reimbursement, tax benefits, easier compliance
✅ Common Features Across Schemes:
Low or subsidized interest rates
Minimal collateral (often government guaranteed)
Flexible repayment options
