Central Government Schemes

Central government subsidy scheme providing margin money assistance (15-35% of project cost) to MSME vendors for setting up new micro-enterprises in manufacturing, service, and trading sectors. Helps vendors access bank loans with reduced financial burden through capital subsidy and enables new entrepreneurs to start businesses with lower upfront investment. MSMEs are also eligible for 2nd Loan under PMEGP. Subsidy rate for general category: Urban - 15%, Rural - 25% Subsidy rate for Special category: Urban - 25%, Rural - 35%

New ventures; Age 18+; Non defaulter; At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector.

Scheme supporting MSME vendors in traditional village industries through technical assistance, training, toolkits distribution,market linkages and even in the form of grant/subsidy. Focuses on rural artisans and micro-enterprises in pottery, beekeeping, and other gramodyog activities to improve productivity and income generation in rural areas.

Rural artisans; Traditional industries; Village-based units.

Capacity building scheme providing free training to potential MSME vendors in entrepreneurship development, business planning, financial management, and technical skills. Helps aspiring entrepreneurs understand business fundamentals before starting ventures and enables existing vendors to upgrade managerial capabilities for business growth.

Aspiring/existing entrepreneurs; Training institutes; Skill development

Quality certification scheme helping MSME vendors adopt zero defect manufacturing (quality products) and zero effect operations (environmental sustainability). Provides 80% subsidy on certification costs, consultancy support, and enhances vendor credibility with buyers seeking quality-certified suppliers for supply chains. ZED Certification can be attained in five levels: Bronze, Silver, Gold, Diamond and Platinum.

Subsidy: 80% (Micro), 60% (Small), 50% (Medium) for certification fees/consultancy charges on successful certification.

Credit guarantee fund scheme (CGS-I) helping MSME vendors to obtain collateral-free loans up to ₹10 crores from banks and financial institutions. Provides 75-85% guarantee coverage to lenders, making it easier for vendors to access credit without pledging assets, particularly beneficial for new entrepreneurs lacking property collateral.

New/existing MSEs;

Additional loan facility for MSME vendors who have successfully repaid their first PMEGP or MUDRA loan, enabling them to expand or modernize existing units. Provides second-time funding for business expansion, technology upgradation, or capacity enhancement with similar subsidy benefits as the original scheme. Financial assistance: Manufacturing units - Upto ₹1 crore. Service/Trading units - Upto ₹25 lakhs with subsidy of 15%.

Existing PMEGP/MUDRA beneficiaries; Fully repaid 1st loan; Last 3 years of profit; 2nd loan should lead more employement; Udhyog Aadhar Memorandum registration.

This scheme helps MSME vendors revive stressed units or NPAs by providing personal loans to promoters for equity infusion. For this scheme, 90% guarantee coverage would come from scheme/ Trust and remaining 10% from the concerned promoter(s) Promoter(s) of the MSMEs are given credit equal to 50% of their stake (equity plus debt) or Rs. 75 lakh whichever is lower.

Operational MSMEs (NPA/stressed); Promoter(s). viz. SMA-2, and NPA accounts

Scheme providing growth capital to MSMEs through a Mother-Daughter Fund structure. Government of India contributes ₹10,000 crore as the anchor to the Mother Fund, which can be leveraged up to ₹50,000 crore through SEBI-registered Daughter Funds. Assistance is provided in the form of equity, quasi-equity or equity-like instruments to MSMEs with strong growth potential, enabling scaling, expansion and potentially meeting listing requirements.

Existing MSMEs; Assessed on positive growth trajectory, business plan indicating positive flow of funds and previous 3 years CAGR.

Financial relief scheme providing 2% interest rate discount to MSME vendors on fresh or incremental loans during the specified period. Reduces the interest rate burden on working capital and term loans, improving vendor cash flow and making credit more affordable for business operations and expansion. Scheme coverage to term loans/working capital upto ₹100 lakh.

• Existing MSMEs with institutional credit • Valid Udyam Registration • Valid GST Registration

Technology upgradation scheme offering 15% capital subsidy (up to ₹15 lakhs) to MSE vendors investing in established technology and machinery. Enables vendors to modernize production facilities, improve efficiency, reduce costs, and compete better by adopting contemporary technology without heavy financial burden.

MSEs buying approved plant & machinery with institutional credit. Special benefits in case of SC/ST, Women, NER / Hill States.

This scheme mandates that central government ministries, departments, and CPSEs procure at least 25% of their annual goods and services from MSEs, with 3% from women-owned and 4% from SC/ST-owned enterprises. Registered MSEs get benefits like price preference, exemption from earnest money, and free tender sets, and 358 items are reserved exclusively for MSEs.

Manufacturing of goods and services rendered by MSEs;

The aim is to combine and strengthen the support previously provided separately for Incubation, Design and Intellectual Property Rights (IPR) into one unified programme. It promotes innovation and competitiveness among MSMEs by helping entrepreneurs turn ideas into viable business ventures through incubation support, professional design assistance, and financial help for IPR protection and commercialization.

All MSMEs having UAM/Udyam Registration;

Component aimed at strengthening domestic marketing of coir and coir-based products through support for showrooms, sales depots, domestic exhibitions and fairs. Market Development Assistance (MDA) is provided to eligible coir institutions, generally as a percentage of average annual sales turnover of coir products, subject to prescribed ceilings and budget availability.

Registered in Coir Board; Co-operatives; Registered Coir Public Sector Enterprises; Apex Societies;

This scheme strengthens the coir industry by providing institutional support such as data collection, policy inputs, skill development for coir workers, e-governance systems, and improved transparency, rather than direct financial assistance to individual MSMEs.

Coir workers; New Enterpreneurs;

Network of technology centers providing MSME vendors access to advanced machinery, CAD/CAM facilities, testing labs, training programs, and technical consultancy. Helps vendors to rent expensive equipment, get technical training, product testing, and design support without capital investment in such facilities.

Manufacturing MSMEs; Aspiring/existing entrepreneurs;

Scheme aimed at enhancing competitiveness of Micro & Small Enterprises through cluster-based development. Financial assistance includes: (i) Common Facility Centres (CFC) – up to 70% of project cost (80% for Special Category States) subject to prescribed ceiling; (ii) Infrastructure Development – up to 60% of project cost (70% for Special Category States) as per Ministry norms. Supports creation of testing facilities, raw material depots, training centres, effluent treatment and common infrastructure for clusters.

MSEs in cluster/SPV form; focus on infrastructure & common facilities

Under the Scheme, MSMEs will be assisted in reducing their manufacturing costs, through proper personnel management, better space utilization, scientific inventory management, improved processed flows, reduced engineering time and so on. LMCS also brings improvement in the quality of products and lowers costs, which are essential for competing in national and international markets.

Registered MSMEs; cluster/SPV formation for Lean adoption

Scheme aimed at enhancing competitiveness of MSMEs through professional design intervention and product innovation. Financial Assistance includes: (i) Design Awareness Seminar – up to ₹60,000 per programme; (ii) Design Workshop – up to ₹4,00,000 (75% GoI support); (iii) Design Projects – 60% of approved project cost up to ₹9 lakh (for individual or up to 3 MSMEs) and up to ₹15 lakh (for group of 4 or more MSMEs); (iv) Student Design Projects – up to ₹2 lakh (₹1.5 lakh GoI support + ₹0.5 lakh MSME contribution).

• MSMEs registered under Udyam • Project-based design intervention • Engagement with approved/empanelled design consultant • MSME contribution of minimum 40% for design projects

The main objective of scheme is to make MSMEs digitally empowered and motivate them to adopt ICT tools and applications in their production & business processes with a view to improve their competitiveness in national and international market. Awareness programmes and Workshops will be organized to incorporate digital methods of operation in MSMEs. Workshops will be funded at Rs. 5 lakhs per day and awareness programme shall be funded at Rs.O.70 lakh /programme.

All MSMEs registered under MSME Act 2006

Scheme aimed at promoting research & development, modernization of production processes, development of machinery and equipment, technology transfer, testing and service facilities in the coir sector. The scheme supports R&D projects and dissemination of improved technologies to coir units through Coir Board institutions.

• Coir Board R&D institutions • Approved research institutions • Coir units adopting developed technologies