Planning a Startup in India? Here’s How PMEGP or Mudra Loans Can Help You Get Started Mumbai

Starting a business is exciting, but let’s be honest—it’s also scary when money is tight. Many great ideas never take off simply because the founder doesn’t have the funds to launch. But what if you could get financial help from the government to kickstart your dream?

That’s where PMEGP or Mudra loan for startups comes into the picture. These government schemes are designed especially for people who want to start small businesses but don’t have enough capital.

Let’s break it down in a simple way so you can understand how to use these loans to fuel your startup journey.

What is PMEGP?

PMEGP (Prime Minister’s Employment Generation Programme) is a central government scheme that provides financial assistance to new entrepreneurs. It supports both manufacturing and service-based businesses.

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  Loan Amount: Up to ₹25 lakh (manufacturing) / ₹10 lakh (service)

  
  


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  Subsidy: 15–35% of the project cost (depends on location and category)

  
  


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  Who can apply: Anyone above 18 years with at least 8th standard education

  
  

You don’t need any past business experience. Even if it’s your first business idea, you can apply. That’s why many youth and first-time entrepreneurs go for PMEGP or Mudra loan for startups.

What is Mudra Loan?

MUDRA (Micro Units Development and Refinance Agency) loan is part of the Pradhan Mantri Mudra Yojana (PMMY). It’s for small and micro-businesses that need less capital to get started.

Mudra loans are offered in 3 categories:

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   Shishu – Up to ₹50,000 (for new startups)

   
   


2. 
   

   Kishore – ₹50,000 to ₹5 lakh (for growing businesses)

   
   


3. 
   

   Tarun – ₹5 lakh to ₹10 lakh (for established small units)

   
   

You can apply through banks, NBFCs, or online, and no collateral is needed for Shishu loans. If you're planning a food stall, beauty parlour, tuition centre, or any small venture—Mudra loans are a good starting point.

Why These Loans Are Popular Among Startups

✅ No need for heavy paperwork or collateral
✅ Government subsidy (PMEGP) reduces repayment pressure
✅ Lower interest rates compared to private lenders
✅ Can be used for machinery, raw material, rent, etc.

The best part? You’re not just getting money—you’re getting a structured push to build something that can last.

How to Apply

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  For PMEGP, visit the official website www.kviconline****.in and apply online. You’ll also need to submit a business plan.

  
  


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  For Mudra loans, you can walk into most Indian banks with your Aadhaar, PAN, business plan, and basic documents.

  
  

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