top of page
Indian Background_edited_edited.jpg

MSME Schemes - Government of India

I'm a paragraph. Click here to add your own text and edit me. It's easy.

Looking to launch your startup in India?

The government offers a helping hand! Recognizing the power of startups to drive innovation and economic growth, various ministries have rolled out schemes to support you.

​

What kind of support?

Think finances, infrastructure, and regulations – all tailored to help your startup thrive. These schemes span across sectors like tech, manufacturing, agriculture, healthcare, and more.

​

Want to know more?

We've got you covered! Each scheme's details, eligibility, application process, and benefits are all listed here. Keep in mind, information can change, so for the latest updates, head to the official websites (links provided will be outdated, so we can't include them here).

​

This section is your one-stop shop to explore government initiatives designed to empower entrepreneurs like you. Take advantage of these schemes, propel your startup forward, and become part of India's booming startup scene!

Default_raw_material_assistance_2.jpg
Raw Material Assistance Scheme (RMAS)

The Raw Material Assistance Scheme (RMAS) is an initiative by the National Small Industries Corporation (NSIC), a Government of India Enterprise under the Ministry of Micro, Small and Medium Enterprises (MSME), to financially assist Micro, Small and Medium Enterprises (MSMEs) in procuring raw materials.

​

The scheme offers credit-based financing to MSMEs for purchasing raw materials, both indigenous and imported, enabling them to focus on manufacturing quality products. It provides credit support for up to 180 days for raw material procurement.

​

Benefits of RMAS for MSMEs

​

  1. Credit facility: MSMEs can avail credit facilities to purchase raw materials.

  2. Focus on production: By not worrying about arranging funds for raw materials, MSMEs can concentrate on production activities.

  3. Economies of scale: The scheme enables MSMEs to benefit from economies of scale through bulk purchases and avail cash discounts offered by suppliers.

  4. Import assistance: NSIC can help with procedures, documentation, and issuance of Letters of Credit for importing raw materials.


Eligibility for RMAS

​

Any manufacturing MSME with a valid Udyam Registration Certificate can apply for assistance under the RMAS scheme.  Trading activities are not eligible under this scheme.

​

How to Apply for RMAS

​

MSMEs can apply for the Raw Material Assistance Scheme at any of the NSIC field offices. The application forms can be downloaded from the NSIC website or obtained from the field offices. The duly filled application form along with necessary documents needs to be submitted to the nearest NSIC branch office for processing.

​

Here are some of the resources for the Raw Material Assistance Scheme:

National Small Industries Corporation (NSIC): https://www.nsic.co.in/ 
Frequently Asked Questions (FAQ) on NSIC's Raw Material Assistance Scheme: https://msme.gov.in/schemes/schemes-national-small-industries-corporation

Required Documents

Default_Promote_and_support_selfemployment_ventures_undertaken_1.jpg
ASPIRE

A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE) is an initiative by the Ministry of Micro, Small & Medium Enterprises (MSME) to boost entrepreneurship and innovation in rural areas, particularly focusing on the agricultural sector.

​

Objectives:

 

  1. Establish a network of technology centers and incubation centers.

  2. Promote startups for innovation in the agro-industry.

  3. Create new jobs in rural India.


Benefits:

  1. Financial support to set up Livelihood Business Incubators (LBI) or Technology Business Incubator (TBI).

  2. Assistance for entrepreneurs in rural areas.

  3. Facilitation of innovation and business development in agriculture and allied sectors.


For more details and official information, you can refer to the  ASPIRE portal directly: Government of India Ministry of MSME - ASPIRE: https://aspire.msme.gov.in/

Required Documents

Working Woman
Trade Related Entrepreneurship Assistance and Development (TREAD)

The Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for Women is a Government of India initiative specifically designed to empower women entrepreneurs.

​

Goal:

Promote and support self-employment ventures undertaken by women, particularly in non-farm activities.

 

Key Features:

  1. Offers financial assistance through a combination of grant and loan.

  2. Provides training, information, and counseling related to trades, products, and services.

  3. Targets women who face challenges in accessing credit due to lack of collateral or limited financial literacy.

​

Benefits:

  1. Enables women to start or expand their businesses.

  2. Equips them with necessary skills and knowledge through training programs.

  3. Mitigates the burden of high-interest loans by offering government grant support.


Resources for TREAD Scheme:

Ministry of MSME - TREAD Scheme Guidelines (PDF): Though the scheme might not be actively running, these guidelines offer valuable insights into its structure and objectives: MSME TREAD Scheme Guidelines: msme.gov.in
Vikaspedia - TREAD Scheme for Women: This webpage provides a comprehensive overview of the scheme's goals, features, and target beneficiaries: TREAD Scheme Vikaspedia: vikaspedia.in
Kinara Capital - TREAD Scheme Benefits for Women Entrepreneurs: This article elaborates on the benefits women entrepreneurs can receive through the TREAD scheme: TREAD Scheme Benefits Kinara Capital: kinaracapital.com

Required Documents

farm in india with a farmer in the foreground.jpg
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), launched in February 2019, is a program by the Government of India that provides income support to landholding farmers' families in the country.

​

Objective:

  1. Supplement the financial needs of small and marginal farmers' families for purchasing agricultural inputs and meeting their household needs.

  2. Financial Benefit: ₹6,000 per year transferred in three equal installments of ₹2,000 each.

  3. Beneficiaries: Landholding farmers' families across India.


Eligibility for PM-Kisan Yojana:

  • Landownership: Must own cultivable land and possess land records.

  • Citizenship: Indian citizen.

  • Age: 18-60 years (as of date of application).

 

Exclusions:

  • Income tax payers paying income tax in the previous assessment year.

  • Existing holders of constitutional posts (Ministers/MLAs/MLCs etc.).

  • Central/State Government employees (excluding Multi Tasking Staff/Class IV/Group D employees).

  • Professionals like doctors, engineers, lawyers, chartered accountants etc. registered with professional bodies and receiving regular income.

  • Retired pensioners (except those getting pension from State/Central Government on account of spouse who died while in service in the armed forces).


How to Apply for PM-KISAN:

  • Online Registration: Visit the PM-KISAN portal [PM Kisan Samman Nidhi pmkisan.gov.in] and register using your Aadhaar card details.

  • Offline Registration: Approach your nearest CSC center or local tehsildar office for assistance with registration.


Important Points:

Aadhaar seeding is mandatory for PM-KISAN registration and receiving benefits.
The program is implemented by the Department of Agriculture, Cooperation & Farmers Welfare under the Ministry of Agriculture and Farmers Welfare.
For further details and updates, refer to the official PM-KISAN website or contact the PM-Kisan Helpline at 155261 or 011-24300606.

Required Documents

Default_boost_entrepreneurship_and_innovation_in_rural_areas_p_0_edited.jpg
Pradhan Mantri Fasal Bima Yojana (PMFBY)

Launched in 2016, the Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-sponsored crop insurance scheme in India. Its aim is to provide financial assistance to farmers in the event of crop loss or damage due to unforeseen events.

​

Objectives:

  1. Financial Support: Offer compensation to farmers for crop losses arising from natural calamities like floods, droughts, and hailstorms.

  2. Income Stability: Ensure a level of income for farmers even during crop failures, helping them stay afloat and continue farming activities.

  3. Risk Mitigation: Encourage farmers to adopt innovative agricultural practices by mitigating the risk of financial losses.

  4. Credit Flow: Facilitate easier access to credit from banks for farmers by providing a safety net against crop failures.


Key Features of PMFBY:

  • Voluntary Participation: Since Kharif 2020, enrollment in PMFBY is voluntary for farmers.

  • Subsidized Premiums: The government offers significant subsidies on crop insurance premiums, making it affordable for farmers.

  • Premiums range from 1.5% to 5% for different crops, with the government covering a substantial portion of the cost.

  • Area Approach: Crop insurance is provided on an 'Area Approach Basis,' meaning claims are determined based on the average yield loss in an insured area, rather than individual farm assessment.

  • Multiple Crops Covered: The scheme covers a wide range of notified crops including food grains, oilseeds, pulses, and horticultural crops.

  • Stages Covered: Insurance coverage extends from pre-sowing to post-harvest stages, protecting farmers against losses throughout the crop cycle.


Here are some resources for further information on PMFBY:

Pradhan Mantri Fasal Bima Yojana (PMFBY) Official Website: https://pmfby.gov.in/
PMFBY on MyGov.in: https://pmfby.gov.in/


Additional Notes:

The implementing agency for PMFBY is the Ministry of Agriculture and Farmers Welfare, Government of India.
Specific crop coverage, premium rates, and claim settlement procedures may vary depending on the state and chosen insurance company.
It's advisable to consult your local agricultural department or insurance company for details on PMFBY implementation in your area.

Required Documents

Default_make_in_india_in_defence_technologies_0_edited.jpg
Technology Development Fund (TDF)

The Technology Development Fund (TDF) is a program launched by the Indian Ministry of Defence (MoD) to promote self-reliance in defence technology. It functions under the Defence Research and Development Organisation (DRDO) as part of the "Make in India" initiative.

​

​

Objective:

  1. Encourage domestic development and production of defence and dual-use technologies.

  2. Reduce India's dependence on foreign military equipment.

  3. Foster a robust ecosystem for cutting-edge defence technology within India.


Target Beneficiaries:

  • Micro, Small & Medium Enterprises (MSMEs)

  • Startups

  • Public & Private Sector Companies

  • Academic and scientific institutions


Type of Assistance:

  • Provides financial aid in the form of grant-in-aid to eligible entities.

  • Offers mentorship, testing facilities, and monitoring support throughout the development process.

  • Focuses on "absorbing genuine failures" during development to foster innovation.

 

Project Scope:

  • Supports various types of defence technology development projects, including:

  • Upgradation of existing defence products/processes

  • Development of entirely new defence technologies

  • Dual-use technologies with both civilian and military applications


Here are some resources for further information on the TDF:

​

Official TDF Website: https://tdf.drdo.gov.in/
About TDF on Invest India: https://www.investindia.gov.in/
Press Information Bureau Release on TDF: https://pib.gov.in/PressReleasePage.aspx?PRID=1983971


Additional Notes:

The TDF scheme prioritizes projects that meet the specific requirements of the Indian armed forces (Army, Navy, Air Force).
The TDF application process is conducted online through the official website.

Required Documents

Printing
Pradhan Mantri Mudra Yojana (PMMY)

The Pradhan Mantri Mudra Yojana (PMMY), launched in 2015, is a flagship scheme of the Government of India that provides financial assistance to micro and small enterprises (MSEs) in the non-farm sector.

​

Objective:

  1. Provide easy and timely access to loans for micro and small businesses.

  2. Promote entrepreneurship and self-employment generation.

  3. Foster growth and development in the non-farm MSME sector.


Loan Categories:

  • PMMY offers loans under three categories based on the loan amount:

  • Shishu: Loans up to ₹50,000 (suitable for starting or running small businesses).

  • Kishore: Loans from ₹50,001 to ₹5 lakh (for established businesses looking to expand).

  • Tarun: Loans from ₹5,00,001 to ₹10 lakh (for further growth and development).


Benefits:

  • Easy Access: Loans are available through a network of commercial banks, regional rural banks (RRBs), small finance banks (SFBs), cooperative banks, microfinance institutions (MFIs), and non-banking financial companies (NBFCs).

  • Simplified Process: Minimal documentation and faster loan processing compared to traditional loans.

  • No Collateral Required: Collateral security is not mandatory for Mudra loans, making them accessible even to new entrepreneurs.

  • Subsidized Interest Rates: Competitive interest rates are offered, making loans more affordable.


Eligibility:

  • Non-farm micro or small enterprises engaged in manufacturing, trading, or service activities.

  • Businesses can be new or existing.

  • Must be a micro or small enterprise as defined by the MSME Ministry of India.


Here are some resources for further information on PMMY:

Pradhan Mantri Mudra Yojana Portal: https://www.jansamarth.in/
PMMY on MyGov.in: https://www.mudra.org.in/
SBI Mudra Loan Schemes: https://www.paisabazaar.com/sbi-bank/mudra-loan/


Additional Notes:

The MUDRA institution itself doesn't provide the loans directly. It acts as a refinancing institution for banks and lenders providing these loans under PMMY.
It's advisable to compare loan terms and interest rates offered by different lenders before applying for a Mudra loan.

Required Documents

Office Employee
Stand Up India

Stand-Up India is a program launched by the Government of India in 2016 to promote entrepreneurship among women and Scheduled Caste (SC) and Scheduled Tribe (ST) communities. It aims to facilitate bank loans for these specific groups to set up greenfield enterprises.

​

Objectives:

  • Boost Entrepreneurship: Encourage women and SC/ST communities to establish new businesses, thereby promoting self-employment and economic empowerment.

  • Financial Inclusion: Provide easier access to bank loans for these underserved sections of society.

  • Job Creation: Foster the creation of new businesses, leading to job opportunities and economic growth.

 

Loan Scheme:

  • Banks: Participating scheduled commercial banks are required to lend to at least one woman entrepreneur and one SC/ST borrower per branch each year.

  • Loan Range: Loans between ₹10 lakh and ₹1 crore are offered for setting up a greenfield enterprise.

    • A greenfield enterprise refers to a new business venture being established for the first time.

  • Sectors: Manufacturing, trading, or services sectors, and activities allied to agriculture are covered under the scheme.

 

Eligibility:

  • Target Beneficiaries:

    • Women entrepreneurs (above 18 years of age)

    • SC/ST entrepreneurs (above 18 years of age)

  • Business Type: New enterprise (greenfield project)

  • Margin Money: Minimum 10% of the project cost as own contribution. Schemes may exist for convergence with eligible Central/State schemes to meet margin money requirements.

 

Benefits:

  • Collateral-Free Loans: No collateral security is required, making loans more accessible.

  • Subsidised Interest Rates: Competitive interest rates are generally offered.

  • Focus on New Businesses: The scheme specifically targets financing for setting up new enterprises.

 

Here are some resources for further information on Stand-Up India:

 

Key Differences from Startup India:

It's important to distinguish Stand-Up India from the Startup India initiative, also launched by the Government of India. Here's a quick comparison:

 

Stand-Up India

Target Audience: Women, SC & ST

Loan Focus: New Businesses

Sector Focus: Manufacturing, Services, Trading, Allied Activities to Agriculture

Loan Range: ₹10 lakh - ₹1 crore

​

​

Startup India

Target Audience: Innovative Startups

Loan Focus: Existing or New

Sector Focus: Any Sector

Loan Range: Varies

Required Documents

How can we help?

Thanks for submitting your request!
We’ll get back to you shortly.

bottom of page