Introduction to MSME Loan Schemes
In 2025, MSME loan schemes provide critical financial support for small and medium enterprises in India. Loanpao explores top government-backed schemes to fuel business growth. Apply now to access tailored MSME loans.
Top MSME Loan Schemes in 2025
Scheme 1: Prime Minister’s Employment Generation Programme (PMEGP)
Offers loans up to ₹50 lakh with subsidies (15–35%) for new enterprises, targeting job creation in manufacturing and service sectors.
Scheme 2: MUDRA Yojana
Provides loans up to ₹10 lakh under Shishu, Kishore, and Tarun categories for micro-enterprises, with interest rates starting at 7.5% p.a.
Scheme 3: Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE)
Collateral-free loans up to ₹5 crore with 75–85% credit guarantee, ideal for startups and small businesses.
Scheme 4: Stand-Up India
Loans from ₹10 lakh to ₹1 crore for women and SC/ST entrepreneurs, with interest rates of 8–10% p.a. and up to 80% funding.
Scheme 5: MSME Business Loan Scheme
General MSME loans up to ₹2 crore for expansion, machinery, or working capital, with rates of 8–12% p.a.
Comparison of MSME Loan Schemes
Key MSME loan schemes for 2025:
| Scheme | Loan Amount | Interest Rate | Collateral | Key Benefit |
|---|---|---|---|---|
| PMEGP | Up to ₹50 lakh | 8–10% p.a. | Not mandatory | 15–35% subsidy |
| MUDRA Yojana | Up to ₹10 lakh | 7.5–12% p.a. | None | Micro-enterprise focus |
| CGTMSE | Up to ₹5 crore | 8–11% p.a. | None | 75–85% guarantee |
| Stand-Up India | ₹10 lakh–₹1 crore | 8–10% p.a. | Not mandatory | Women/SC/ST focus |
| MSME Business Loan | Up to ₹2 crore | 8–12% p.a. | Varies | Flexible usage |
Note: Eligibility and terms vary by lender and business type.
Benefits of MSME Loan Schemes
These schemes offer:
- Collateral-free financing (e.g., CGTMSE, MUDRA).
- Subsidies up to 35% (PMEGP).
- Low interest rates (7.5–12% p.a.).
- Support for diverse sectors, including manufacturing and services.
- Inclusive funding for women and marginalized groups (Stand-Up India).
Tips for Applying to MSME Loan Schemes
Maximize your approval chances:
- Prepare Documentation: Ensure Udyam Registration, business plan, and financials are ready.
- Choose the Right Scheme: Match your business needs (e.g., MUDRA for micro-units, PMEGP for startups).
- Check Eligibility: Verify criteria like turnover, sector, and entrepreneur category.
- Use EMI Calculators: Plan repayments with Loanpao’s EMI calculator.
- Consult Lenders: Discuss terms with banks or NBFCs for clarity on subsidies and rates.