Frequently Asked Questions on Government Loans & Subsidies
Answers to top searched queries about PMEGP, Mudra, state subsidies, and collateral-free credit in India.
How much subsidy can I get under the PMEGP scheme for a new business? ▼
Under the Prime Minister Employment Generation Programme (PMEGP), General category entrepreneurs in urban areas receive a 15% subsidy, and in rural areas receive 25%. Special category applicants (including Women, SC, ST, OBC, Minorities, and Ex-Servicemen) receive 25% subsidy in urban areas and up to 35% non-refundable margin money subsidy in rural areas. The maximum project cost is ₹50 Lakhs for manufacturing and ₹20 Lakhs for services.
What is the maximum loan limit in Pradhan Mantri MUDRA Yojana (PMMY)? ▼
MUDRA loans are 100% collateral-free and divided into 4 tiers: Shishu (loans up to ₹50,000), Kishore (loans from ₹50,001 up to ₹5 Lakhs), Tarun (loans from ₹5 Lakhs up to ₹10 Lakhs), and Tarun Plus (loans up to ₹20 Lakhs) for businesses with a proven track record of timely repayment.
Can I get a business loan without submitting property collateral in India? ▼
Yes. The Government of India backs micro and small enterprises through the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) which provides guarantee cover up to ₹5 Crore without requiring third-party collateral or land mortgage. Additionally, Mudra (up to ₹20L) and PM Vishwakarma (up to ₹3L) are 100% collateral-free.
Which state governments provide 50% non-refundable capital subsidies? ▼
Bihar Mukhyamantri Udyami Yojana grants flat ₹10 Lakhs funding where ₹5 Lakhs (50%) is a direct non-refundable grant and ₹5 Lakhs is an interest-free loan. Odisha MKUY grants up to 50% capital investment subsidy up to ₹50 Lakhs for commercial agro and food units. Rajasthan MLUPY offers up to 8% interest subsidy for 5 years on loans up to ₹10 Crore.
What documents are mandatory for government loan and subsidy applications? ▼
Standard mandatory documents include: (1) Aadhaar Card and PAN Card, (2) Detailed Project Report (DPR) with machinery quotations and cost estimates, (3) Udyam Registration Certificate, (4) Caste / Category Certificate (if claiming special subsidy rates), (5) Bank statements for the past 6 months, and (6) Proof of business address (rent agreement, electricity bill, or land records).
About UdyogSetu (उद्योग सेतु) — udyogsetu.org
Bridging Indian Entrepreneurs, Artisans & Youth with Central & 28 State Government Subsidies.
What is UdyogSetu?
UdyogSetu (hosted officially at udyogsetu.org) is a modern, unified public directory and algorithmic eligibility calculator for Indian business loans, collateral-free credit, self-employment schemes, and government capital subsidies.
Every year, thousands of crores in budgeted subsidies—such as 15% to 35% margin money under PMEGP, 5% interest loans under PM Vishwakarma, and up to ₹20 Lakhs collateral-free credit under MUDRA—remain underutilized simply because information is scattered across hundreds of separate central ministries and state government departments. UdyogSetu brings all of them into a single, intuitive interface.
Zero Middlemen & 100% Free Public Resource
UdyogSetu is committed to total transparency. We do not act as loan brokers, nor do we solicit fees or private banking credentials. Every scheme profile on udyogsetu.org routes entrepreneurs directly to official Government of India and State single-window portals, including JanSamarth, KVIC Online, Udyam, and respective District Industries Centres (DICs).
Our rule engine cross-references official gazette notifications, subsidy percentages, collateral waivers, and age criteria across Central Ministries and all 28 Indian States to keep eligibility results 100% accurate.