How To Apply For Government Loan Schemes & Subsidies For Small Business In India?

how to apply for government loans

MSME or Micro, Small and Medium Enterprises are considered as the backbone of Indian economy. With their relentless push and dedication, small businesses are creating new jobs, helping India’s GDP to grow, and making India self-reliant or Atma Nirbhar.

Did you know that by 2023, more than 16 crore Indians will be employed by small businesses, triggering a new wave of growth and progress? Almost one-third of India’s economy is created by these small businesses, making India stronger and more powerful across every industry and sector.

Business, be it small or big, is uncertain, and needs nurturing and protection. The Government of India understands that to encourage SMEs and small businesses in India, it’s vital to provide them financial support, and guidance.

The concept of Government loan and a business loan from Government has been conceptualized and developed due to the same reason: To empower SMEs and to help them financially in order to run their operations and expand.

In this article, we will inform you how to apply for Govt loans, and Govt subsidies based on your specific requirements, and how to select the best Govt loan for small businesses.

How To Apply For Government Loans For Small Businesses

The Finance Ministry, along with the Ministry of Micro, Small and Medium Enterprises and Ministry of Commerce & Industry has launched several Govt loan schemes. These are targeted and focussed for small businesses across various industries including manufacturing, services, IT, food and beverages, electrical, electronics and more.

Details of all these Govt loans and Government subsidies can be found at the official website of Ministry of Micro, Small and Medium Enterprises here, along with Startup India website from Ministry of Commerce and Industry here.

There exists both Central Government loan schemes, as well as State Govt loan and subsidies programs, targeted for small and medium enterprises.

Here is an overview of the top 5 Govt loans and Govt subsidies which you can apply, and the process of applying the same:

How To Apply For Pradhan Mantri Mudra Yojana

In this scheme, Micro Units Development and Refinance Agency Bank or MUDRA Banks offer low-interest loans to small enterprises via micro-finance institutions and non-banking financial institutions.

Loans upto Rs 10 can be availed under this Govt scheme. 

You can apply for Pradhan Mantri Mudra Yojana here.

How To Apply For Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT MSE)

Credit Guarantee Trust Fund for Micro & Small Enterprises or CGTMSE is one of the most popular business loans from Govt, wherein SMEs and small enterprises can avail collateral-free loans upto Rs 1 crore.

This Government loan scheme is directly undertaken by the Ministry of MSME and Small Industries Development Bank of India (SIDBI).

You can apply for CGTMSE here.

MSME Loan In 59 Minutes

Small Industries Development Bank of India along with the Ministry of Finance, offers MSME loans in 59 minutes flat. Small and medium enterprises can avail Govt loans upto Rs 10 crore under this innovative scheme.

There are some documents to be submitted, and PSU banks are authorized to disperse the loan within 10 days, once the loan application is approved in 59 minutes.

You can apply for MSME Loan in 59 minutes here.

How To Apply For Govt Subsidies Under ZED Certification Scheme

For empowering new and existing manufacturing units with the high-quality testing process, Govt of India has launched ZED or Zero Defect, and Zero Effect mission. 

This scheme ensures that their products are world-class, and they can compete with global companies, on an equal platform.

You can claim benefits such as tools and technology, financial help and more under the ZED scheme.

You can apply for the ZED Scheme here.

How To Apply For Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)

Suppose your startup or small business wants to upgrade their technology, and purchase new equipment, software, tools and machines for being more productive and expand your operations. In that case, the Credit Linked Capital Subsidy for Technology Upgradation (CLCSS) scheme is the best way forward.

Get upto 15% Government subsidies for investment upto Rs 1 crore under this program.

You can apply for the Credit Linked Capital Subsidy for Technology Upgradation (CLCSS) scheme here.

How To Apply For Credit Facilitation Through Bank by National Small Industries Corporation 

The National Small Industries Corporation (NSIC) under the aegis of Ministry of Micro, Small and Medium Enterprises (MSME) offers a unique Government loan platform for small enterprises under “Credit Facilitation Through Bank by National Small Industries Corporation.”

Some of the biggest private and public banks have collaborated under this Govt scheme for providing easy and instant loans to startups and small businesses.

You can apply Credit Facilitation Through Bank by National Small Industries Corporation for here.

How To Apply For Design Clinic for Design Expertise to MSMEs

Small businesses need to be using cutting edge designs, technology and innovations for seamless growth, and to conquer their market.

To facilitate high-level training and workshops for SMEs and small businesses in the field of design, user experience and graphics and more, Govt provides subsidies under the Design Clinic for Design Expertise to MSMEs.

Subsidy upto Rs 60,000 is provided to attend design-related seminars and workshops under this program. You can also take your team members and avail upto 75% Government subsidy. 

Ministry of MSME and Govt of India provides this special Government subsidy for this endeavour under the Design Clinic Scheme.

You can apply for the Design Clinic for Design Expertise here.

If you have more doubts and queries about Govt loan schemes and subsidies for small businesses and entrepreneurs and wish to know the in-depth procedure to apply for Government loans, we will recommend MSMEx.in.

Now, consult with the sharpest business minds and experts of small business loans and take informed decisions on your next steps.

You can book your online appointment right here at MSMEx.