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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.

Also know about Government Subsidy Loan and Business Loan