Starting or growing a business needs money. But not every business owner has enough funds. That is why the Government of India has many loan schemes to help small, medium, and even large businesses. These loan schemes give money at low interest, with easy rules and support to help businesses grow.

In 2025, many new updates will come to these schemes to help more entrepreneurs, especially small business owners, women, youth, and startups. Here is a detailed list of the top government business loan schemes in India in 2025.

1. PM MUDRA Yojana (Micro Units Development and Refinance Agency)

What it is:

MUDRA loans are special loans started by the Government of India under the Pradhan Mantri MUDRA Yojana. These loans are for small and micro business owners like shopkeepers, tailors, small factories, and roadside vendors. Many people who run small businesses do not get support from banks. MUDRA helps them by giving loans without any property or security. The aim is to help them grow and earn more. like shopkeepers, vendors, service providers, and small factories.

Loan Amount:

• Shishu: Up to ₹50,000

• Kishor: ₹50,001 to ₹5 lakh

• Tarun: ₹5 lakh to ₹10 lakh

Features:

• No need to give security or collateral

• Easy application through banks, NBFCs, and online

• Helps street vendors, beauty parlours, small shops, tailors, and more

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2. Stand-Up India Scheme

What it is:

The Stand-Up India scheme is made to support people from SC/ST category and women who want to start their own business. Many times, these groups face difficulty in getting loans. This scheme ensures that every bank branch gives loans to at least one SC/ST and one woman. The money can be used to start any new business in manufacturing, trading, or services. start a new business.

Loan Amount:

• ₹10 lakh to ₹1 crore

Features:

• Can be used for manufacturing, trading, or service business

• Bank branch must give at least 1 loan to SC/ST and 1 to a woman entrepreneur

• Repayment time up to 7 years

3. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

What it is:

CGTMSE helps small business owners who don’t have any security or property to show to the bank. Under this scheme, the government becomes a guarantee for the loan. So, if the person is not able to return the loan, the government pays the bank. This makes it easy for small businesses to get loans and grow without fear of giving land or house as guarantee. so that small businesses can get loans without giving collateral.

Loan Amount:

• Up to ₹2 crore

Features:

• No need to give property or asset

• Helps new and existing businesses

• Loan is given by banks and covered by government guarantee

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

What it is:

PMEGP is a scheme that gives financial help to people who want to start small businesses in towns or villages. It is mainly for unemployed youth, craftsmen, and traditional artisans. The government gives part of the money as a subsidy, so the person has to return only a smaller loan. This helps create more jobs and supports self-employment. or small factories in villages and towns.

Loan Amount:

• Up to ₹25 lakh for manufacturing

• Up to ₹10 lakh for services

Features:

• Government gives 15% to 35% subsidy on the loan amount

• Must create jobs through the business

• Apply through KVIC, DIC, or online portal

5. SIDBI Make in India Soft Loan Fund for MSMEs (SMILE)

What it is:

SMILE is a special loan scheme started by SIDBI (Small Industries Development Bank of India). It is made for small and medium businesses (MSMEs) that want to expand, buy new machines, or modernise. It gives loans at low interest and for a longer time. This helps businesses grow under the Make in India program. for small businesses that want to grow or modernise.

Loan Amount:

• From ₹10 lakh to ₹50 lakh (depends on business need)

Features:

• Lower interest for new MSMEs in Make in India sectors

• Longer repayment time (up to 10 years)

• Helps buy machinery or expand business

6. Startup India Scheme

What it is:

The Startup India scheme is made for young people who have new business ideas. It helps them start their own company with money, training, and other support. It also gives tax benefits and makes it easy to register your startup online. This scheme is good for tech startups, new product makers, and modern service businesses. and support.

Features:

• Fund of Funds: ₹10,000 crore government fund to invest in startups

• Easy registration through Startup India portal

• Tax benefits for 3 years

• Support in patent, marketing, and training

7. PSB Loans in 59 Minutes

What it is:

PSB Loans in 59 Minutes is an online platform where business owners can apply for loans easily. You don’t need to visit the bank many times. You just upload your details like GST, income tax, and bank statement, and you can get approval in less than one hour. It connects you with many banks and gives faster loan service. can apply for loans quickly and get approval in 59 minutes.

Loan Amount:

• ₹1 lakh to ₹5 crore

Features:

• Fast approval from public and private banks

• Easy online form with GST, IT, and bank details

• Low interest and less paperwork

Other Helpful Schemes (2025 updates)

• TREAD Scheme for Women Entrepreneurs – Helps women get bank loans with government support

• MSME Sustainable ZED Certification – Gives benefits to MSMEs that follow quality and eco-friendly standards

• Export Promotion Capital Goods Scheme (EPCG) – For businesses that want to buy machinery to increase exports

In 2025, the Indian government is giving strong support to businesses through easy and useful loan schemes. Whether you are a small shop owner, a woman entrepreneur, a village business starter, or a young startup founder – there is a scheme for you.

Before applying, check the full details, prepare your documents, and reach out to your bank or visit the official portals.

Smart business needs smart funding – and these government schemes are made to help you grow.

If you're looking for expert guidance to choose the right loan or want to plan your business finances smartly, Motilal Oswal can help you. From investment advice to financial planning for entrepreneurs, Motilal Oswal offers trusted support for your business journey.

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