Business loans & government schemes — what you actually qualify for
Plain-English guide to MUDRA, PMEGP, Stand-Up India, CGTMSE, Stree Shakti, GeM Sahay, and the Udyam registration that unlocks them all. No jargon, just what to apply for and where.
Start here: register on Udyam first
Without Udyam (MSME) registration, you cannot claim 90% of the benefits below. It's free, takes 15 minutes, needs only Aadhaar + PAN.
All the schemes
MUDRA
Pradhan Mantri MUDRA YojanaFor: Non-corporate, non-farm small/micro enterprises
💡 Most common starting loan for kirana, salon, tailor, mechanic, food vendor — no collateral.
- Indian citizen
- Existing or new non-agriculture, non-corporate small enterprise
- Business plan or quote/proforma for the loan use
- No collateral required (CGTMSE covers up to ₹10 lakh)
PMEGP
Prime Minister Employment Generation ProgrammeFor: New manufacturing / service micro-enterprises
💡 Up to 35% govt subsidy on project cost. Best when starting a new manufacturing unit.
- Age 18+, no income ceiling
- For NEW units only (not existing businesses)
- Minimum 8th standard pass for ₹10L+ projects
- Self-contribution: 5-10% of project cost
Stand-Up India
Stand-Up IndiaFor: SC/ST + Women entrepreneurs setting up greenfield enterprises
- SC/ST or Woman entrepreneur
- Age 18+
- NEW greenfield enterprise in manufacturing, services or trading
- In case of non-individual entity, 51% shareholding by SC/ST or woman
Udyam
Udyam Registration (MSME)For: Anyone wanting MSME status — opens access to all other schemes
💡 Mandatory first step. Without Udyam, you can't claim 90% of MSME benefits — including faster GST refunds and priority sector lending.
- Aadhaar card
- PAN + GSTIN (if applicable)
- Self-declaration of investment + turnover
- Annual turnover thresholds: Micro <₹5cr, Small <₹50cr, Medium <₹250cr
CGTMSE
Credit Guarantee Fund — CGTMSEFor: Collateral-free loans up to ₹5 crore for MSEs
- Registered MSE (Udyam holder)
- New or existing business
- No third-party collateral / personal guarantee required
- Bank decides loan amount based on viability
Stree Shakti
Stree Shakti Package (SBI)For: Women entrepreneurs (small business)
- Woman entrepreneur with ≥50% shareholding
- Enrolled in EDP programme of state agency
- For retail trade, professional & service enterprises
ABRY
Atmanirbhar Bharat Rozgar YojanaFor: Employers — subsidy on EPF contribution for new hires
- EPFO-registered establishment
- Hire new employees on or after Oct 2020
- Wage ≤ ₹15,000/month for the new hire
GeM Sahay
GeM Sahay (for sellers on GeM)For: SMBs supplying to government via GeM portal
💡 Fast working capital against govt orders — disbursal within days of order confirmation.
- Registered seller on GeM portal
- Has a confirmed purchase order from government buyer
- Bank account + PAN
Quick eligibility filter
If you fit ONE of these, you almost certainly qualify for at least one scheme:
- ✅ Women entrepreneur: Stand-Up India, Stree Shakti, Mahila Udyam Nidhi.
- ✅ SC / ST entrepreneur: Stand-Up India, NSFDC schemes.
- ✅ First-time entrepreneur: MUDRA Shishu (up to ₹50K), PMEGP.
- ✅ Existing kirana / salon / mechanic / tailor: MUDRA Kishor or Tarun, CGTMSE.
- ✅ Selling to govt on GeM: GeM Sahay against order value.
- ✅ Hiring new staff: ABRY for EPF subsidy.
Red flags — avoid these
- 🚩 Anyone charging a "processing fee" to "guarantee" approval — banks charge their own fees; brokers should not be needed.
- 🚩 WhatsApp groups offering "MUDRA loan 5 lakh in 24 hours, no documents" — these are scams.
- 🚩 Schemes that require you to take a "training course" worth ₹10K+ before applying.
- 🚩 Loan apps that ask for OTP, Aadhaar OTP, or access to your contacts/photos.
Always apply directly via the official portals linked above or at a branch of a regulated bank/NBFC.
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Disclaimer: We are not a bank or financial advisor. Scheme details change — always verify on the official portal linked above before applying. Last reviewed: 2026.