Here is a detailed overview of the government subsidy and loan schemes: PMEGP, Startup Loan, Mudra Loan, and PMFME, which are designed to foster entrepreneurship and provide financial assistance:

PMEGP (Prime Minister’s Employment Generation Programme)

• Focuses on generating employment by supporting micro-enterprises in manufacturing, services, and business sectors.

• Provides a subsidy on the project cost (typically 15%-35%) depending on the category of beneficiary (General/OBC/SC/ST/Minorities).

• Loan amount can range up to ₹25 lakh for manufacturing units and ₹10 lakh for service units.

• Open to individuals above 18 years old, including self-help groups, cooperative societies, and existing units for modernization.

• Candidates go through an appraisal process and the project is implemented with technical and managerial support.

• Subsidy amount is directly credited to the beneficiary’s account, reducing the upfront investment.

Startup Loan Scheme

• Aimed at nurturing innovative entrepreneurs with scalable business models.

• Provides financial support for seed capital, working capital, and expansion funding.

• Typically available from government-approved incubators, venture funds, and banks under the Startup India initiative.

• Includes soft loans and subsidies, often with collateral-free and lower interest rate features.

• Supports startups registered under Startup India with a formal business plan.

• Encourages innovation, technology, and job creation with easy access to funding and mentoring.

Mudra Loan (Micro Units Development & Refinance Agency)

• Designed to finance non-corporate small/micro enterprises in manufacturing, trading, and services sectors.

• Offers three loan categories:

  • Shishu: Up to ₹50,000 (for startups and micro-businesses)

  • Kishore: ₹50,000 to ₹5 lakh (for business stabilization)

  • Tarun: ₹5 lakh to ₹10 lakh (for business growth/expansion)

• Provides collateral-free loans with flexible repayment and fair interest rates.

• Widely accessible through banks, NBFCs, and MFIs across India.

• Encourages entrepreneurship, promotes financial inclusion, and formalizes small businesses.

PMFME (Prime Minister’s Formalization of Micro Food Processing Enterprises)

• Focuses on formalizing and enhancing micro food processing units.

• Provides financial assistance of up to ₹10 lakh for plant and machinery, working capital, and marketing.

• Supports technical, business, and marketing training for beneficiary units.

• Aims at increasing employment opportunities and making food processing businesses competitive.

• Eligible beneficiaries include micro-units with annual turnover below ₹2 crore operating in the food processing sector.

• Promotes cluster-based development and procurement of modern technology.

These schemes collectively aim to empower entrepreneurs with accessible finance, subsidies, and support infrastructure to build sustainable and scalable businesses. Maaruti Finserv can assist applicants in understanding, applying for, and maximizing benefits under these schemes.