Starting a business is easier in India today than it has ever been. To help entrepreneurs, small business owners, and MSMEs out, the government provides a number of loan schemes to provide them with the required funds. Be it for a first-time entrepreneur or an already operating business owner, these government schemes would help provide the financial impetus to expansion.
This guide describes the top 5 government business loan schemes available in India for 2025. We will cover the important features, eligibility criteria, benefits, and how to apply. Let’s begin!
Government loan schemes provide key assistance to Indian entrepreneurs in starting and expanding their enterprises. Most of the schemes ensure low interest rates, have easy application procedures, and are designed to benefit women, SC/STs, and other underprivileged groups. You will need proper information to choose the best among these for your needs.
Top 5 Government Business Loan Schemes in India 2025
Here are some of the best government business loan schemes offered in India-
| S.No. | Govt Business Loan Schemes |
| 1. | MSME Loan Scheme in 59 Minutes |
| 2. | Pradhan Mantri MUDRA Yojana (PMMY) |
| 3. | National Small Industries Corporation |
| 4. | Credit-Linked Capital Subsidy Scheme |
| 5. | SIDBI Loan |
1. MSME Loan Scheme in 59 Minutes
The MSME (Micro, Small, and Medium Enterprises) Loan Scheme in 59 Minutes is a popular choice for small business owners. This scheme aims to provide quick and easy loans to MSMEs.
Key Features:
- Loan Amount: Up to โน1 crore
- Interest Rate: Around 8-9% per annum
- Repayment Tenure: Up to 7 years
- Processing Time: Very fastโsometimes as quick as 59 minutes!
Who Can Apply:
- Small business owners
- Micro, small, and medium enterprises
- Startups
Benefits:
- Fast and hassle-free application
- No collateral required for loans up to โน1 crore
- Special provisions for women and SC/ST entrepreneurs
How to Apply:
- Visit the official MSME portal
- Fill out the application form
- Submit necessary documents (ID proof, business documents, etc.)
2. Pradhan Mantri MUDRA Yojana (PMMY)
Pradhan Mantri MUDRA Yojana (PMMY) is one of the most popular business loan schemes in India. It targets small businesses and startups in the non-corporate and non-farm sector.
Key Features:
- Loan Amount: Up to โน10 lakh
- Interest Rate: Around 8-9% per annum
- Repayment Tenure: Up to 5 years
Categories:
In the MUDRA loan, the following 3 loans are offered-
| S.No. | MUDRA Loan Scheme | Principal Amount | Interest Rate |
| 1. | Shishu MUDRA Loan | This loan scheme provides a loan of up to Rs 50,000 | 1%-2% p.a. |
| 2. | Kishor MUDRA Loan | This loan scheme provides a loan of up to Rs 5 lakhs | 8.60%-11.15% p.a. |
| 3. | Tarun MUDRA Loan | This loan scheme offers loans over Rs 5 lakh up to Rs 10 lakh | 11.15%-20% p.a. |
Who Can Apply:
- Small business owners
- Startups
- Street vendors, small shopkeepers, small manufacturers
Benefits:
- No collateral required for loans up to โน1 lakh
- Fast processing and easy eligibility
- Special support for women, SC/ST, and differently-abled entrepreneurs
How to Apply:
- Visit a bank, NBFC, or MFIs (Microfinance Institutions)
- Fill out the application form
- Submit required documents (identity proof, business proof, etc.)
3. National Small Industries Corporation (NSIC)
The National Small Industries Corporation (NSIC) provides various loan schemes and support services for small industries and entrepreneurs.
Key Features:
- Loan Amount: Up to โน1 crore or more
- Interest Rate: Varies by scheme and bank
- Repayment Tenure: Up to 5 years
Who Can Apply:
- Small industries
- MSMEs
- Entrepreneurs in manufacturing, services, and trading
Benefits:
- Loans for working capital, equipment purchase, and business expansion
- Online application and fast processing
- Support for collateral-free loans in some cases
How to Apply:
- Visit the NSIC portal
- Choose the appropriate scheme
- Fill out the application form
- Submit required documents
4. Credit-Linked Capital Subsidy Scheme (CLCSS)
The Credit-Linked Capital Subsidy Scheme (CLCSS) is designed to help small industries upgrade their technology and equipment.
Key Features:
- Loan Amount: Up to โน1 crore
- Subsidy: 15% of the loan amount as subsidy
- Interest Rate: Varies by scheme and bank
Who Can Apply:
- Small industries
- MSMEs
- Units in manufacturing, services, and trading
Benefits:
- 15% subsidy on the loan amount
- Helps upgrade technology and equipment
- Special focus on energy efficiency and modernization
How to Apply:
- Visit the NSIC portal or the concerned ministry website
- Fill out the application form
- Submit required documents (project details, quotations, etc.)
5. SIDBI Loan
Small Industries Development Bank of India (SIDBI) provides a range of loan products and schemes for small businesses and startups.
Key Features:
- Loan Amount: Up to โน1 crore or more
- Interest Rate: Varies by scheme and bank
- Repayment Tenure: Up to 5 years
Who Can Apply:
- Small businesses
- Startups
- MSMEs
Benefits:
- Various loan products for different needs (working capital, equipment, business expansion)
- Special schemes for women, SC/ST, and differently-abled entrepreneurs
- Fast processing and easy eligibility
How to Apply:
- Visit the SIDBI portal or any beneficiary bank
- Choose the appropriate scheme
- Fill out the application form
- Submit required documents
How to Choose the Right Loan Scheme
With so many government business loan schemes, it can be confusing to choose the right one. Here are some tips:
- Match Your Needs: Choose a scheme that fits your business type and loan amount requirement.
- Check Eligibility: Make sure you meet all the eligibility criteria for the scheme.
- Compare Interest Rates: Lower interest rates mean lower EMIs and less total interest paid.
- Consider Special Benefits: Look for schemes that offer additional benefits like subsidies, collateral-free loans, or special support for your group (e.g., women, SC/ST).
- Easy Application: Choose schemes with simple and fast application processes.
Conclusion
Government business loan schemes in India are a great way to get the financial support you need to start or grow your business. The top 5 schemesโMSME Loan Scheme in 59 Minutes, Pradhan Mantri MUDRA Yojana (PMMY), National Small Industries Corporation, Credit-Linked Capital Subsidy Scheme (CLCSS), and SIDBI Loanโoffer a range of benefits to entrepreneurs.
By choosing the right scheme and following the application process, you can get the funds you need to succeed. Start your business journey today with the help of these government schemes.
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Top Government Business Loan Schemes in India 2025: Frequently Asked Questions
1. What is the MSME Loan Scheme in 59 Minutes?
Itโs a quick loan scheme for small businesses, offering up to โน1 crore with fast processing and no collateral for loans up to โน1 crore.
2. How can I apply for Pradhan Mantri MUDRA Yojana?
Visit a bank, NBFC, or MFIs, fill out the application, and submit required documents.
3. Can I get a loan from NSIC for my small business?
Yes, NSIC provides loans for small businesses, including collateral-free loans in some cases.
4. What is the Credit-Linked Capital Subsidy Scheme (CLCSS)?
CLCSS provides a 15% subsidy on loans for technology upgrades in small industries.
5. How can I get a SIDBI loan?
Visit the SIDBI portal or a beneficiary bank, choose the scheme, fill out the application, and submit documents.
6. Are these schemes available for women entrepreneurs?
Yes, most schemes offer special benefits and support for women entrepreneurs.
7. Do I need collateral for these loans?
For loans up to โน1 crore, collateral is not required in several schemes.
8. What are the interest rates for these schemes?
Interest rates are usually around 8-9% per annum, but vary by scheme and lender.
9. How long does it take to get a loan under these schemes?
Processing can be very fastโsometimes as quick as 59 minutes for the MSME scheme!
10. Where can I get more information about these schemes?
Visit the official websites of MSME, MUDRA, NSIC, CLCSS, and SIDBI for the latest information.
Disclaimer: This article is for informational purposes only. Loan features, interest rates, eligibility criteria, and benefits may vary by scheme and bank. Always check the official websites for the latest details and consult a financial advisor or loan expert to find the best option for your business.
