Government Funding Schemes for MSMEs
PMEGP, CGTMSE, MUDRA, Stand-Up India, CGSS and more — we match your business to the schemes it actually qualifies for, prepare the file, and stay with it until the money is in your account.
- Collateral-free options
- Subsidy up to 35%
- 15+ central & state schemes
- Bank follow-up included
At a Glance
- Funding range
- ₹10L – ₹5Cr
- Capital subsidy
- 15% – 35%
- Collateral
- Not always needed
- Typical timeline
- 45 – 90 days
- Schemes covered
- 15+
What Is Government Schemes?
The Government of India runs dozens of credit and subsidy schemes for micro, small and medium enterprises — and most business owners either do not know they exist or apply under the wrong one and get rejected. A rejected file is not a small setback: it sits in the bank's records, and the next application is harder.
SetuBridge starts from the opposite end. We look at your constitution, vintage, sector, turnover, promoter category and the purpose of the funds first, and only then decide which scheme (or combination of schemes) gives you the best mix of quantum, subsidy and speed. Sometimes that is PMEGP because of the 15–35% margin money subsidy; sometimes it is a CGTMSE-backed working capital limit because you have no collateral to offer; often it is a term loan under one scheme plus a subsidy claim under another.
From there it is execution: project report, financial projections that a credit officer will actually accept, the full documentation set, portal filing, DIC/KVIC or bank-level interviews, and follow-up through appraisal, sanction, documentation and disbursement. You get one point of contact for all of it.
₹45Cr+
Disbursed
700+
Businesses helped
85%
Approval rate
45 days
Average sanction
Schemes We Cover
These are the central schemes we file under most often. Your state will usually have its own industrial policy on top, which we check separately.
PMEGP
Up to ₹50LPrime Minister's Employment Generation Programme — margin money subsidy for new micro enterprises, administered through KVIC, KVIB and District Industries Centres.
- Project cost up to ₹50 lakh (manufacturing), ₹20 lakh (service)
- Subsidy 15–35% by category and rural/urban location
- Own contribution only 5–10%
CGTMSE
Up to ₹5CrCredit Guarantee Fund Trust for Micro and Small Enterprises — guarantee cover that lets a bank lend without third-party collateral.
- Collateral-free term loan and working capital
- Guarantee fee payable by the borrower
- Available to new and existing MSEs
MUDRA (PMMY)
Up to ₹20LPradhan Mantri Mudra Yojana — collateral-free credit for non-farm micro enterprises in manufacturing, trading and services.
- Shishu: up to ₹50,000
- Kishore: ₹50,001 – ₹5 lakh
- Tarun: ₹5 lakh – ₹10 lakh; Tarun Plus: ₹10–20 lakh
Stand-Up India
₹10L – ₹1CrGreenfield funding for SC/ST and women entrepreneurs, with every bank branch mandated to facilitate such loans.
- First venture of the borrower only
- Composite term loan and working capital
- Repayment up to 7 years with moratorium
CGSS
Up to ₹10CrCredit Guarantee Scheme for Startups — guarantee cover for lenders extending credit to DPIIT-recognised startups with no collateral to offer.
- DPIIT recognition required
- Venture debt and working capital covered
- Transaction-based and umbrella-based cover
Technology upgradation
Capital subsidyCredit-linked capital subsidy on plant and machinery for units modernising their technology, plus the state-level equivalents.
- Subsidy on eligible plant and machinery
- Must be against a term loan from an eligible lender
- Time-bound claim from date of investment
Benefits
What you actually gain from Government Schemes.
Money you never repay
Margin money and capital subsidies of 15–35% are grants, not loans. On a ₹50 lakh project that can be ₹10–17 lakh that permanently reduces your borrowing.
Funding without collateral
CGTMSE guarantee cover lets banks lend up to ₹5 crore without third-party collateral — the single biggest unlock for businesses whose assets are already mortgaged.
Cheaper than the alternative
Scheme-linked credit is priced far below NBFC and unsecured lending, and tenures are longer, which keeps your monthly outflow manageable while the unit stabilises.
A file that gets approved
Correct scheme, complete papers, projections in the format the credit officer expects. That combination is why our approval rate sits around 85% against a much lower self-filed average.
Eligibility
Check where you stand before applying — we confirm all of this on the first call anyway.
Business profile
- Proprietorship, partnership, LLP, private limited or registered society — the right scheme depends on which one you are.
- New units (greenfield) qualify for PMEGP and Stand-Up India; existing units with 2+ years of financials qualify for expansion, CGTMSE and CLCSS-type support.
- Manufacturing, service, trading, food processing and allied activities are all covered, though each scheme excludes some activities from its negative list.
- Udyam registration is effectively mandatory — if you do not have it yet, we do it first (it is free and same-day).
Promoter profile
- Age 18 and above; some schemes have an upper age band set by the lender.
- For PMEGP, 8th standard pass is required where project cost exceeds ₹10 lakh (manufacturing) or ₹5 lakh (service).
- SC/ST, OBC, women, ex-servicemen, minority, PH and North-East/hill-area applicants get a higher subsidy slab and lower own contribution.
- No wilful default; a workable CIBIL score. Below roughly 650 we will tell you to repair it first rather than waste an application.
Financial position
- Own contribution of 5–10% for subsidy schemes, and typically 10–25% margin for ordinary term loans.
- A viable, documented business activity — not just an idea. Orders, quotations or existing sales strengthen the file considerably.
- Existing borrowers should have a clean repayment record; irregular accounts are the single most common rejection reason.
- No overlap with a subsidy already availed for the same asset under another central scheme.
Documents Required
KYC & constitution
- PAN and Aadhaar of all promoters, partners or directors
- Passport-size photographs
- Proof of business address — rent agreement, electricity bill or ownership document
- Certificate of Incorporation / Partnership Deed / LLP Agreement
- Udyam Registration Certificate
- GST registration certificate, where applicable
- Caste, disability or ex-serviceman certificate for the higher subsidy slab
Financial & project papers
- Last 2–3 years' audited financials and ITRs (for existing units)
- Last 12 months' bank statements of all business accounts
- Detailed Project Report with cost of project and means of finance
- Machinery and equipment quotations from suppliers
- Proof of land or premises — ownership papers or registered lease
- Existing loan sanction letters and repayment track record
- Educational qualification certificate, where the scheme requires it
How We Help You Get Government Schemes
What we handle for you, and the order we do it in.
Scheme eligibility mapping
A written assessment of every central and state scheme your business qualifies for, with the quantum, subsidy and catch for each — so you choose with full information.
Detailed Project Report (DPR)
Bank-format project report with technical write-up, machinery quotations, cost of project, means of finance and a break-even analysis that stands up to appraisal.
Financial projections
Three to five years of projected P&L, balance sheet, cash flow and ratio analysis (DSCR, current ratio, TOL/TNW) built to the lender's own benchmarks.
Portal filing & application
Complete online filing on the relevant portal — kviconline (PMEGP), Jan Samarth, Stand-Up India, udyamimitra, CGTMSE — plus the physical file for the branch.
Bank & agency liaison
We handle branch queries, DIC/KVIC interviews, EDP formalities, technical inspections and every clarification the appraising officer raises.
Subsidy claim & post-sanction
Margin money / capital subsidy claim filing after disbursement, plus help with the lock-in and utilisation compliance so the subsidy is not clawed back.
Step by step
- 1
Free consultation and profiling
Day 1We understand the business, the amount you need, what it is for, and what security you can offer. You get an honest read on whether funding is realistic right now.
- 2
Scheme selection and eligibility report
2 – 3 daysA written comparison of the schemes you qualify for, with quantum, subsidy, interest, collateral requirement and expected timeline for each. You pick; we do not push.
- 3
Documentation and project report
5 – 10 daysWe collect and vet every document, then build the DPR and financial projections. This is where most self-filed applications fail, and where the bulk of our work sits.
- 4
Application filing
1 – 2 daysOnline submission on the scheme portal plus the physical file to the selected branch, with an acknowledgement you can track.
- 5
Appraisal, interview and sanction
30 – 60 daysBranch appraisal, DIC/KVIC interview where applicable, technical or unit inspection, and resolution of every query the credit team raises. We follow up in writing and in person.
- 6
Disbursement and subsidy claim
15 – 30 daysLoan documentation, security creation, disbursement in tranches against utilisation, then the margin money or capital subsidy claim and its adjustment.
Why Choose SetuBridge
What working with us is actually like.
We tell you when the answer is no
If you are not eligible, or the timing is wrong, or your credit record needs fixing first, we say so on the first call — before you have paid us anything.
One team, start to finish
The same people who assess your case prepare the file and follow it up. You are not handed to a different desk after the sale, and you never re-explain your business.
700+ businesses, ₹103 Cr+ facilitated
We have run this process across 28 states and most sectors, so we know which departments, portals and branches move quickly and which need chasing.
Fees agreed in writing, upfront
You know the cost before work starts. We never ask you to pay anything to a government official or bank employee, and no legitimate consultant will.
Follow-up is the actual work
Most applications do not fail at filing — they stall at an unanswered query or a missed deadline. Chasing those to closure is the bulk of what we do for you.
You keep every document
Certificates, acknowledgements, login credentials and filed copies are handed over to you. Nothing is held back to keep you dependent on us.
₹103 Cr+
Funding facilitated
700+
Businesses helped
85%
Success rate
28
States covered
Frequently Asked Questions
There is no single best scheme — it depends on whether your unit is new or existing, your constitution, sector, turnover, promoter category and what the money is for. A new manufacturing unit usually gets the most value from PMEGP because of the margin money subsidy. An existing unit needing working capital without collateral is better served by a CGTMSE-backed limit. Our eligibility report compares all of them side by side for your specific case.
Related Services
Subsidies & Grants for MSMEs
Capital subsidy, R&D grants and export incentives you never repay.
Startup Funding — Seed to Series A
Seed funds, angel and VC readiness for DPIIT-recognised startups.
MSME Certificate — Udyam Registration
Free MSME registration — the gateway to nearly every benefit.
Government fees, scheme limits and eligibility norms are revised from time to time. Figures on this page are indicative — our team confirms the rules in force on the day of filing before you commit to anything.
Find out which government scheme fits your business
Talk to a SetuBridge advisor. We'll tell you honestly whether this is the right fit for your business — no charge for the first conversation.