5 Government Schemes to Start or Grow Your Business
5 Government Schemes to Start or Grow Your Business in India (2026)
Want to start a business but worried about investment? The Government of India offers several schemes that may help eligible entrepreneurs access business loans, subsidies, startup support, and skill-development benefits.
Whether you want to open a small shop, start a manufacturing unit, build a technology startup, or grow a traditional artisan business, these five schemes are worth exploring.
Important: These schemes do not guarantee free money or automatic approval. Some provide loans that must be repaid, while others offer conditional subsidies or selective startup funding.
1. PM MUDRA Yojana – Business Loans for Small Entrepreneurs
Best for: Small businesses, shops, service providers, and micro-enterprises.
The Pradhan Mantri MUDRA Yojana (PMMY) supports eligible small businesses by helping them access institutional credit through participating banks and financial institutions.
Loan Categories
- Shishu: Up to ₹50,000
- Kishor: Above ₹50,000 and up to ₹5 lakh
- Tarun: Above ₹5 lakh and up to ₹10 lakh
- Tarun Plus: Above ₹10 lakh and up to ₹20 lakh, for eligible entrepreneurs who successfully repaid a previous Tarun loan
What Can You Use It For?
Depending on eligibility and lender approval, funding may support activities such as:
- Opening a retail shop or small business
- Purchasing business equipment
- Starting a service-based enterprise
- Expanding an existing micro-business
- Supporting eligible manufacturing and trading activities
Official Application and Information
Official website: https://financialservices.gov.in/pradhan-mantri-mudra-yojana-pmmy
Explore eligible schemes: https://www.jansamarth.in/
2. Stand-Up India – Support for Women and SC/ST Entrepreneurs
Best for: Eligible women entrepreneurs and entrepreneurs belonging to Scheduled Castes or Scheduled Tribes who want to establish a new business.
The Stand-Up India scheme was designed to facilitate bank loans for eligible greenfield enterprises in manufacturing, services, trading, and allied agricultural activities.
Key Benefits Under the Original Scheme
- Composite bank loans ranging from ₹10 lakh to ₹1 crore
- Support for eligible first-time business ventures
- Financing for qualifying business setup and working-capital requirements
- Guidance through participating lending institutions
Important 2026 Update
The original scheme period ran up to 31 March 2025, and a successor scheme was announced. Therefore, check the latest official government information before applying rather than assuming that applications under the original scheme are currently open.
Official Information
Government website: https://www.financialservices.gov.in/stand-india-scheme-supi
Explore eligible schemes: https://www.jansamarth.in/
3. PMEGP – Government Subsidy for Eligible New Businesses
Best for: Entrepreneurs planning to establish a new manufacturing or service enterprise.
The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy programme intended to encourage entrepreneurship and employment generation.
Maximum Eligible Project Cost
- Manufacturing projects: Up to ₹50 lakh
- Business/service projects: Up to ₹20 lakh
Illustrative Subsidy Rates
- General category — Urban area: 15%
- General category — Rural area: 25%
- Special category — Urban area: 25%
- Special category — Rural area: 35%
The applicable category, location, project eligibility, and current scheme guidelines determine the subsidy rate.
Example
Suppose an eligible project has a cost of ₹10 lakh. At an illustrative subsidy rate of 25%, the margin-money subsidy would be ₹2.5 lakh, subject to approval and scheme conditions.
Remember: This is not an unconditional cash grant. PMEGP involves bank financing, eligibility checks, and prescribed subsidy conditions. The applicant must arrange the required contribution and meet the applicable requirements.
Who Can Apply?
Eligible applicants generally must be at least 18 years old. Additional conditions apply, including restrictions concerning existing units and educational qualifications for certain project sizes.
Official Application Portal
Apply or check the latest guidelines: https://www.kviconline.gov.in/pmegpeportal/pmegphome/
Detailed scheme guidelines: https://www.kviconline.gov.in/pmegpeportal/dashboard/notification/Revised_PMEGP_Scheme_Guidelines_07122023_compressed.pdf
4. SAMRIDH – Support for Technology Startups
Best for: Eligible technology and IT-based startups looking for acceleration, mentoring, and investment support.
The SAMRIDH programme, implemented through the Ministry of Electronics and Information Technology (MeitY), aims to support promising software product startups through selected accelerators.
Potential Benefits
- Startup acceleration and mentoring
- Support with product development and business growth
- Connections with customers, investors, and industry networks
- Opportunities to access investment support through participating accelerators
Funding Opportunity
Eligible startups selected under the programme may receive investment support of up to ₹40 lakh, subject to programme rules, selection, and applicable funding conditions. Any matching investment requirement must also be verified against the current guidelines.
Funding is selective, not guaranteed.
Who Should Explore It?
This programme may be relevant if you are building a technology product, software platform, digital service, or other eligible IT-based startup.
Official Information
MeitY Startup Hub: https://msh.meity.gov.in/schemes/samridh
MyScheme portal: https://www.myscheme.gov.in/schemes/ssaomfpidg
5. PM Vishwakarma – Support for Traditional Artisans
Best for: Eligible traditional artisans and craftspeople working in covered trades.
PM Vishwakarma is designed to support traditional artisans through skill development, tools, credit, and market access.
Major Benefits
- Toolkit incentive: Up to ₹15,000, subject to eligibility and scheme conditions
- Basic training: Generally 5–7 days
- Training stipend: ₹500 per day during eligible training
- First loan tranche: ₹1 lakh
- Second loan tranche: ₹2 lakh, subject to applicable conditions
- Concessional interest: 5% beneficiary interest rate on eligible loans
- Digital transaction incentive: ₹1 per eligible transaction, up to 100 transactions per month under scheme rules
- Marketing and business-development support
Who May Benefit?
The scheme covers eligible artisans across 18 traditional trades, subject to registration and verification requirements.
It may be worth exploring if you work in a covered craft or traditional occupation and want to improve your tools, skills, or business operations.
Official Application and Information
PM Vishwakarma portal: https://pmvishwakarma.gov.in/
MyScheme portal: https://www.myscheme.gov.in/schemes/pmv
Which Government Scheme Is Right for You?
| Your Business Goal | Scheme to Explore |
|---|---|
| Start or expand a small business | PM MUDRA Yojana |
| Explore financing for an eligible greenfield business | Stand-Up India / current successor programme |
| Establish an eligible new manufacturing or service unit | PMEGP |
| Develop an eligible technology startup | SAMRIDH |
| Improve a traditional artisan business | PM Vishwakarma |
Before You Apply: 5 Important Tips
- Check eligibility first. Every scheme has its own conditions.
- Prepare a business plan. Include your investment, expenses, expected revenue, and repayment capacity.
- Keep your documents ready. Requirements vary but may include identity proof, bank details, business information, and project documents.
- Use official websites. Avoid agents who promise guaranteed approval in exchange for unofficial fees.
- Understand the financial terms. Loans must be repaid, subsidies are conditional, and startup investment depends on selection.
Final Thoughts
Starting a business becomes easier to plan when you understand the support available to eligible entrepreneurs. The right scheme depends on your business type, investment requirement, location, and eligibility.
Before making a financial decision, verify the latest application status, benefits, and guidelines on the relevant official government portal.
Disclaimer: This article is for general informational purposes and is not a guarantee of funding or subsidy approval. Scheme terms, eligibility, funding availability, and application procedures may change. Always confirm the latest details with the relevant government department or participating financial institution.
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