Government Subsidy Loan For MSMEs

Small and Medium-sized Enterprises (SMEs) and Micro, Small, and Medium-sized Enterprises (MSMEs) play a pivotal role in India’s economic landscape. They contribute significantly to employment generation, innovation, and overall economic growth. Recognising their importance, the Indian government has introduced various subsidy loan schemes to support their development and expansion. This page briefs various subsidy schemes the Government offers to Indian SMEs and MSMEs.

What are Government Subsidy Loans

Government subsidy loans are financial assistance programs or schemes offered by government and financial institutions with various financial perks and benefits. Typical features of government subsidy loans include –

• Low-interest rates
• No collateral required
• Favourable terms and conditions
• Credit guarantee scheme
• Incentives
• Partial to full finance
• Loan amount waivers, etc.

The main objective of introducing these loans is to make credit more affordable and accessible to SMEs and MSMEs, thereby encouraging entrepreneurship and economic development.

List of Government Subsidy Loans

1. Integrated Development of Leather Sector (IDLS) Scheme
2. Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)
3. Technology& Quality Upgradation Support for MSMEs (TEQUP)
4. Government Subsidy for Small Business for Cold Chain
5. Extension of Financial Assistance to Coir units in the Brown Fibre sector
6. Scheme for Extension of Financial Assistance for Generator Set / Diesel Engine
7. Marketing Assistance Scheme by NSIC
8. ISO 9000/ISO 14001 Certification Reimbursement Scheme
9. Marketing support/Assistance to MSMEs (Bar code)
10. Support for Entrepreneurial and Managerial Development of SMEs
11. Lean Manufacturing competitiveness schemes for MSMEs
12. Prime Minister Employment Generation Programme (PMEGP)
13. Yarn Bank Scheme
14. Solar Energy Scheme for Power Looms
15. Modified Comprehensive Power Loom Cluster Development Scheme (MCPCDS)
16. Integrated Processing Development Scheme (IPDS)
17. SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters)
18. Market Development Assistance Scheme for Micro/ Small manufacturing enterprises/ Small & Micro exporters (SSI-MDA)
19. Micro & Small Enterprises – Cluster Development Programme (MSE-CDP)
20. Digital MSME Scheme for promotion of Information and Communication Technology (ICT) in MSME Sector
21. Support for Entrepreneurial and Managerial Development of SMEs Through Incubators
22. Financial Support to MSMEs in ZED Certification Scheme
23. Design Clinic for Design Expertise to MSMEs
24. Enabling Manufacturing Sector to be Competitive through QMS&QTT
25. Building Awareness on Intellectual Property Rights (IPR)
26. Coir Vikas Yajna (CVY)
27. Scheme for Technology Upgradation/ Establishment/ Modernization for Food Processing Industries
28. Science and Technology (S&T) for Coir Institution
29. Market Promotion & Development Scheme
30. Domestic Market Promotion (DMP)
31. A Scheme for promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)
32. Procurement and Marketing Support Scheme (P&MS)
33. Support for Entrepreneurial and Managerial Development of MSMEs through Incubators
34. Performance & Credit Rating Scheme
35. Coir Udyami Yojana
36. Assistance of Capital and Interest Subsidy for MSMEs (except service enterprise)
37. Assistance in rent to MSEs
38. Schemes for Assistance Labour Intensive Industries
39. Scheme for Financial Assistance to Plastic Industry
40. New Enterprise Cum Enterprise Development scheme (NEEDS)
41. Unemployed Youth Employment Generation Programme (UYEGP)
42. Mukhya Mantri Yuva Udyami Yojana
43. Chief Minister Self Employment Scheme
44. Margin Money / Subsidy Scheme – Seed Money Scheme
45. Margin Money / Subsidy Scheme – District Industries Centre Loan Scheme
46. Subsidy Schemes in Goa
47. U.P. Micro and Small Industries Technology Up-gradation Scheme
48. Marketing Development Assistance Scheme
49. Nivesh Promotion Scheme
50. Land related incentives
51. Market Development Assistance
52. Quality Certification
53. Financial assistance for the installation of Enterprise Resource Planning (ERP) System and adoption of other ICT platforms & facilities
54. Technology upgradation & Acquisition Support
55. Raising capital through SME Exchange
56. Energy & Water Conservation Scheme
57. Assistance in service line and power connection charges
58. Use of Rooftop Solar Power by MSMEs
59. Promote Start-up and innovation
60. Special focus on the promotion of Service sector
61. Reimbursement of expenses incurred for water audit
62. Assistance for zero discharge
63. Recycling of electronic waste and plastic waste
64. Fixed Capital Investment (FCI)
65. Power Tariff Subsidy
66. Stamp duty Exemption
67. Exemption from payment of Electricity Duty
68. Investment Promotion Subsidy (IPS) on Gross SGST

For SC/STs

1. Subsidised term loan for SC/ST
2. Swachhta Udyami Yojana (SUY) for SC/ST
3. Special Credit Linked Capital Subsidy Scheme (SCLCSS) for MSEs under National Scheduled Castes and Scheduled Tribes Hub Scheme-reg
4. Bharat Ratna Dr. Baba Saheb Ambedkar Udyog Uday Yojna for SC/ST Entrepreneurs of MSME
5. Capital Investment subsidy and Assistance for Interest subsidy for SC/ST
6. Assistance for quality certification for SC/ST
7. Financial support to MSMEs in ZED certification
8. Assistance in the implementation of Information and Communication Technology (ICT)
9. Assistance for technology acquisition
10. Assistance for raising capital through SME exchange
11. Assistance for power connection charges
12. Assistance to basic industrial infrastructure (Water, Gas and approach road)
13. Assistance to Special Entrepreneurship Training
14. Assistance to GIDC for developing multi-storeyed shed in estates
15. Assistance to MSEs for shed developed by private developers
16. Assistance in rent to MSEs
17. Assistance to MSME manufacturing sector participation in the exhibition (National & international)
18. Assistance to MSE of SC/ST for plot developed by GIDC

For Women

1. Skill Upgradation & Quality Improvement and Mahala Coir Yojana (MCY)
2. Trade-Related Entrepreneurship Assistance and Development (TREAD
3. Investment Promotion Subsidy on Fixed Capital
4. Exemption from Stamp Duty: MSMEs
5. Concessional Registration Charges: MSMEs
6. Reimbursement of Non-Agriculture Conversion Fee
7. Exemption from Entry Tax: MSMEs
8. Subsidy for setting up Effluent Treatment Plant (ETP): Manufacturing MSMEs
9. Interest Subsidy for Micro Enterprises (for MICRO units only)
10. Exemption from Tax on Electricity Tariff: MSME Manufacturing Enterprises
11. Technology Upgradation, Quality Certification: MSME Manufacturing Enterprises
12. Water Harvesting / Conservation Measures (Small and Medium Manufacturing Enterprises only)
13. Energy Conservation Scheme

How to Apply for Government Subsidy Schemes

Before applying for a government subsidy loan, you should know the relevant subsidy scheme that suits your business’s sector and requirements. Eligible applicants can apply for Government Subsidy loans in 3 ways.

1. From Standupmitra.in website
2. Directly at any scheduled commercial bank branch
3. Through Lead District Manager – The list of agencies, e-mail addresses, and contact addresses for each state are available on the Standupmitra website.

Eligibility to Apply for Government Subsidy Schemes

The eligibility criteria to apply for Government subsidy loans varies for each loan. Typically, MSMEs are the primary beneficiaries of these schemes. Eligibility factors may include business size, sector, creditworthiness, and ownership. Click on the loan names above to know each scheme’s specific eligibility details.