Hello friends! If you’re a budding entrepreneur working day and night to turn your business idea into reality, this post is for you. Imagine—you have a concept for a brilliant app, or perhaps a sustainable product that saves the environment, but getting a loan from a bank seems impossible. Funding without collateral? Sounds like a dream, right?
But wait! The Indian government has launched loan schemes for startups in 2025 that will not only give wings to your dreams but also provide funding worth lakhs and crores of rupees without guarantee.
Today, we’ll discuss these schemes—in simple language, step-by-step.
If you’re associated with an MSME or about to start a new venture, read to the end. This information could change your life!
I know that funding is the biggest challenge in the startup world.
But the good news is that the government has made special provisions for DPIIT-recognized startups.
Let’s jump straight to the main schemes.
1. Pradhan Mantri Mudra Yojana (PMMY): Easy Loans for Small Businesses
Friends, if your business is small – like a shop, tailoring, or food processing – then PMMY is best for you. This scheme has been running since 2015 and has been further simplified in 2025.
There are three categories: Shishu (up to ₹50,000), Kishor (up to ₹5 lakh), and Tarun (up to ₹10 lakh).
The special feature? No collateral is required!
Apply through banks or NBFCs, and the interest rate ranges from 8–12%.
If you’re a first-time entrepreneur, register on the Startup India portal. You’ll receive funding and mentorship under PMMY.
Millions of entrepreneurs have benefited from it – why should you lag behind?
2. Credit Guarantee Scheme for Startups (CGSS): Guaranteed Support for Startups
Now let’s talk about innovative startups. CGSS was launched in 2020, but the loan limit has been increased to ₹20 crore in 2025.
DPIIT-recognized startups receive up to 85% guarantee on loans from banks, NBFCs, or venture debt funds. This means the lender will perceive less risk, and you will have easier access to a loan.
For example, if your tech startup is based on AI, check the official details of CGSS. DPIIT registration is required to apply, then contact your MI (Member Institution).
This scheme boosted thousands of startups in 2024 alone – it’s even more powerful in 2025!
3. Stand-Up India: Empowerment for Women and SC/ST Entrepreneurs
Women and SC/ST entrepreneurs, this scheme is a game-changer for you. Launched in 2016, it offers loans ranging from ₹10 lakh to ₹1 crore for greenfield projects.
Low interest rates (9–10%) and 85% guarantee cover.
Perfect for those starting a new business in the manufacturing, services, or trading sectors.
Apply on the Stand-Up India website – online capacity building is also free.
In 2025, an extension of up to ₹2 crore has been added, which is specific to women.
It not only provides funding but also creates equal opportunities.
4. Startup India Seed Fund Scheme (SISFS): Seed Capital for the Seed Stage
This part of Startup India provides funding ranging from ₹20 lakh to ₹50 lakh for proof-of-concept or prototype.
Grants are awarded through incubators, and the fund pool is estimated at ₹945 crore in 2025.
Ideal for tech, healthcare, or agriculture startups.
For more information, see Startup India Seed Fund.
Have a strong business plan before applying – this scheme comes with mentorship.
5. CGTMSE: Collateral-Free Credit Guarantee for MSMEs
This scheme for MSMEs has been in operation since 2000 and covers collateral-free loans up to ₹2 crore in 2025.
Best for business expansion in the manufacturing or service sectors.
Guarantee cover ranges from 75–85%, with interest rates from 8–11%.
Register on the CGTMSE portal and link to a local bank.
This scheme supports Make in India, hence providing additional benefits to priority sectors.
How to Take Advantage of These Schemes: Step-by-Step Guide
Friends, mere talk won’t suffice—take action!
- First, obtain Udyam registration (for MSMEs).
- Then, obtain startup recognition from DPIIT.
- Prepare a business plan—project cost, revenue projection, etc.
- Apply via portals like PSB Loans in 59 Minutes, where approval can be obtained in just 59 minutes.
Documents required: Aadhaar, PAN, bank statement, project report.
Digital applications have increased in 2025—enlist the help of platforms like Rupee Boss.
Remember, pay EMIs on time to maintain a good credit score.
Challenges and Tips: Ease the Path to Success
Sometimes, there are delays in applying or documentation issues.
Tip: Start with a local SBI or co-operative bank.
In 2025, checking credit history has become easier with AI-based apps.
If rejected, get mentorship – the MAARG platform is free.
These schemes not only provide funding but also build ecosystems. India has a target of 100,000 startups by 2025 – yours can be one too!
Friends, the startup world is difficult, but easier with government support. Apply today and give your idea wings. Tell us in the comments, which scheme would you try? Share it so that more entrepreneurs can benefit. See you in the next post!