The types of government loans in India

Here's a Detailed Overview of Major Government Loan Schemes in India you can explore: -

The types of government loans in India :-

📌 General Titles:

1. Types of Government Loan Schemes in India.

2. Top Government Loan Schemes Available in India.

3. Complete List of Government Loans in India for 2025.

4. Government Loans in India: A Complete Guide.

5. Public Sector Loan Programs You Should Know About.

🏦 Focused Titles:

6. Business and Startup Loan Schemes by the Indian Government.

7. Government Loans for Small Businesses and Entrepreneurs.

8. Top Government Loan Schemes for MSMEs in India.

9. Loan Schemes for Women, SC/ST, and Street Vendors in India.

10. Collateral-Free Government Loans You Can Avail in India.

🏦 1. Pradhan Mantri MUDRA Yojana (PMMY)

• Purpose : Microcredit to non-corporate, non-farm small businesses.

•Loan Tiers :

  Shishu* (≤ ₹50 000)

  Kishore* (₹50 001–₹5 lakh)

  Tarun* (₹5 lakh–₹10 lakh) ([sbi.co.in][1])

• Repayment : 5–7 years with moratorium (6–12 months).

• Collateral : Not required for Shishu/Kishore; Tarun asks for 20% margin .

• How to apply : Via banks, NBFCs, MFI, SBI online, or the JanSamarth portal ([jansamarth.in][2]).

2. PM SVANidhi (for Street Vendors)

Purpose : Working-capital microloan post-COVID support.

Initial loan : ₹10 000 for 1 year, then ₹20 000, and up to ₹50 000 in cycle 3 ([en.wikipedia.org][3]).

• Interest subsidy : 7% annually on timely repayment. Cashback incentives for digital payments ([en.wikipedia.org][3]).

• Collateral : None.

• Eligible : Registered vendors active before 24 March 2020 ([en.wikipedia.org][3]).

3. Prime Minister’s Employment Generation Programme (PMEGP)

• Purpose : Encourage self-employment among artisans, youth; supports new ventures.

• Loan Size : Up to ₹25 lakh for manufacturing; ₹10 lakh for services ([ujjivansfb.in][4]).

• Subsidy : 15–35% margin subsidy depending on rural/urban & beneficiary category ([en.wikipedia.org][5]).

• Example : Pune pre‑school pivot used ₹4 lakh loan, aided 25 staff, now ₹25 lakh turnover ([timesofindia.indiatimes.com][6]).

4. Stand-Up India

• Purpose : Loans for SC/ST and women entrepreneurs.

• Loan Range : ₹10 lakh–₹1 crore for greenfield manufacturing/trading/service ventures ([en.wikipedia.org][7]).

• Note : Over 1.8 lakh applicants served, >80% by women ([en.wikipedia.org][7]).

5. Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)

• Purpose : Offers collateral-free loans to MSMEs.

* **Coverage**:

  * 85% guarantee for ≤₹5 lakh & women/N.‑East MSEs

  * 75% for ₹5 lakh–₹1 crore

  * 50% for ₹1–₹5 crore ([en.wikipedia.org][8]). Access : Through SIDBI, banks, NBFCs.

6. PM Vishwakarma Scheme

• Purpose**: For traditional artisans and craftspeople.

• Loan : Up to ₹3 lakh in two installments (₹1 lakh + ₹2 lakh) at \~5% interest (8% govt‑subsidized) ([india.gov.in][9]).

Extras : Includes training stipend, toolkit assistance, digital transaction rewards, marketing support ([india.gov.in][9]).

• 7. Credit Guarantee Scheme for Startups (CGSS)

• Purpose : Collateral-free support for startups.

• New Limit : Guarantee cover now raised to ₹20 crore per borrower ([ujjivansfb.in][4], [sbi.co.in][1]).

8. Additional Schemes Worth Mentioning

• Credit-Linked Capital Subsidy Scheme (CLCSS) : 15% subsidy on tech upgrades, up to ₹1 crore loan ([ujjivansfb.in][4]).

• Stand‑Up India and  PMEGP also offer assistance for SC/ST, women, and youth enterprises ([ujjivansfb.in][4]).

 🧭 How to Choose & Apply

| Your Need | Ideal Scheme(s) |

| Micro-business (< ₹10 lakh) | PMMY Shishu/Kishore |

| Street vending | PM SVANidhi |

| Artisan/craft business | PM Vishwakarma |

| SC/ST or women entrepreneurs | Stand‑Up India, PMEGP |

| Collateral-free credit | CGTMSE, CGSS |

| Tech upgrades | CLCSS |

✅ Common Steps:

1. Check eligibility (e.g., registration, vendor certificates, Udyam/SC‑ST/women status).

2. Apply online via official or bank portals (e.g., JanSamarth, UdyamiMitra, PM SVANidhi).

3. Documents : ID, address/Aadhaar, business proof (licenses, Udyam, vendor ID), bank statements.

4. Processing : Schemes have dedicated credit guarantee or subsidy mechanisms—look for interest rates, margin requirements, moratorium periods.

5. Disbursement & Follow‑up : Depending on scheme, get collateral-free loans, subsidies, cashback, and digital incentives.