Updated 30 September 2026. Reviewed by WeCredit Research Team and checked against the official sources listed at the end. Scheme limits and portals change, so confirm current details before you apply.

Which scheme fits you?

Pick the line that sounds most like you. Each card points to the guide that answers it.

Compare government loan schemes

Use this as a shortlist, not a sanction. Amounts are typical scheme ceilings, and the lender still underwrites your case.

Scheme	Best for	Amount and security	Guide
MUDRA / PMMY	Non-farm micro businesses	Up to ₹20 lakh. Generally no collateral.	MUDRA guide
PMEGP	New micro units (manufacturing and services)	Projects up to ₹50 lakh (manufacturing) or ₹20 lakh (service). Subsidy of 15% to 35% of project cost.	Eligibility checks
Stand-Up India	First-time SC/ST and women entrepreneurs	Earlier scheme window closed 31 Mar 2025; successor announced. Earlier terms: ₹10 lakh to ₹1 crore. Confirm live bank products.	Women finance checklist
MSME / SME schemes	Udyam-registered businesses	Varies by scheme. Apply via JanSamarth.	Online apply guide
CGTMSE-backed credit	Eligible micro and small enterprises	Guarantee cover up to ₹10 crore. Collateral-light.	CGTMSE vs private
PM SVANidhi	Street vendors	₹15,000 / ₹25,000 / ₹50,000. No collateral.	SVANidhi guide
NDFDC / Divyangjan	Persons with disability (UDID, 40%+)	Concessional, agency-led. Terms set by the agency.	PwD credit guide
Women entrepreneur finance	Women founders checking live schemes	Mix of schemes. Varies by lender.	Women finance checklist

Government loan schemes explained

A short, plain-language summary of the main schemes. For eligibility checklists, documents and bank-wise steps, open the linked WeCredit guide.

MUDRA loan (PMMY)

MUDRA is a loan, not a grant or subsidy. The interest rate, processing fee and turnaround are set by the lender, so two banks can offer different terms under the same scheme. Read the full MUDRA eligibility and documents guide.

PMEGP (Prime Minister’s Employment Generation Programme)

Special categories include SC/ST/OBC, minorities, women, ex-servicemen, persons with disability and applicants from hill, border and north-eastern areas. Some activities, such as meat processing, alcohol and tobacco, are not covered. Check the government business loan eligibility guide before you prepare a project report.

Stand-Up India (original scheme and successor)

Status check: the original Stand-Up India lending window ran to 31 March 2025, and Budget 2025-26 announced a successor for first-time women and SC/ST entrepreneurs whose final terms were still being processed. The figures above are the earlier scheme’s terms, so confirm live products with your bank and on the official Stand-Up Mitra portal before you plan around them. See also our women entrepreneur finance checklist.

CGTMSE credit guarantee

You ask your bank whether your loan can be covered. Not every lender or loan qualifies. Compare CGTMSE-backed and private MSME loans.

PM SVANidhi

Applications go through the official PM SVANidhi portal or participating lenders. Read the PM SVANidhi guide.

MUDRA loan categories

PMMY is a collateral-free micro-credit route, not a subsidy paid into your account. Pick the category that matches your ticket size.

MUDRA guides by bank and topic

The scheme is the same everywhere, but each bank has its own documents, fees and turnaround. Bank guides, application status, the sanction process, repayment terms and common mistakes are listed below. This list updates automatically, so new MUDRA posts appear here without editing this page.

More scheme and MSME guides

Guides for MSME loans, CGTMSE, PM SVANidhi, loans for persons with disability, women entrepreneurs and business loan types. This list updates automatically as new government scheme guides are published.

How applications actually work

1. Match the scheme using the table above. Do not apply on two portals for the same need.
2. Open the one guide, then apply on JanSamarth, the named bank, or the official scheme portal.
3. Read before you accept: check the sanction, fees, subsidy and repayment. The lender’s Key Fact Statement is the final word.

Official sources

JanSamarth · MUDRA / PMMY · PMEGP (KVIC) · Stand-Up Mitra · CGTMSE · PM SVANidhi · NDFDC

Frequently asked questions

Which government loan scheme is best for a small business?

There is no single best scheme. Micro needs often start with MUDRA. New units that want a subsidy look at PMEGP. Collateral-light bank credit for eligible small enterprises may use CGTMSE cover. Street vendors, persons with disability and women founders have their own routes. Use the comparison table above to shortlist.

What is the difference between MUDRA and PMEGP?

MUDRA is a loan product for micro and small businesses, including existing ones, with no subsidy. PMEGP is for setting up new units and adds a government subsidy of 15% to 35% of project cost on top of a bank loan. PMEGP has stricter rules on activity type and project size.

Do government business loans need collateral?

Many are collateral-free or collateral-light. MUDRA is generally collateral-free, PM SVANidhi needs none, and CGTMSE cover helps lenders extend credit without collateral to eligible small enterprises. Larger projects, such as those under PMEGP or Stand-Up India, are still appraised by the bank, which may ask for security.

Is this a place to apply for a government loan?

No. This page helps you choose a scheme and opens a detailed guide. Applications go through official portals such as JanSamarth, or directly through a participating bank.

Are government loans interest-free?

Usually no. Most are interest-bearing bank or financial-institution loans. Some add a subsidy, guarantee cover or cashback. Compare the interest rate, fees and repayment terms in the lender’s Key Fact Statement.

Can I use a private business loan instead?

Yes, if scheme eligibility is weak or you need faster underwriting. See the private-loan guides in the section above before you decide.

This page is a directory of WeCredit scheme guides. Scheme rules, amounts and portals can change. Confirm current details on the official source before you apply.