STARTUP INDIA & PMEGP SCHEMES

Startup Business Loan 2026 Schemes, Eligibility & Apply

Fund your new business with government-backed startup loans from ₹50,000 to ₹10 crore, no prior business track record required for select schemes, compare offers from 30+ lenders on PaisaOne.

Loan Quantum
₹50k to ₹10 Crore
PMEGP Subsidy
15% to 35% Margin Money
Seed Fund (SISFS)
Up to ₹50 Lakh Grant/Debt
Vintage Needed
Zero (New Startups)
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Startup Business Loan 2026

Key Benefits of Government Startup Loans

PMEGP Margin Money Subsidy

Receive up to 35% non-repayable government capital subsidy on total project cost.

No Prior History Required

Schemes like PMEGP and Mudra Shishu evaluate your Detailed Project Report (DPR) without past track record.

Startup India Seed Fund (SISFS)

Access grants up to ₹20 lakh for proof of concept and ₹50 lakh convertible notes via approved incubators.

Stand Up India Support

Greenfield manufacturing and service loans up to ₹1 crore for women and SC/ST founders.

Trusted Partners

Top Lenders Offering Startup Business Loan 2026s

PMEGP Nodal
DPIIT Incubators
SBI Startup
SIDBI Venture
BOB Startup
PNB SME
PMEGP Nodal
DPIIT Incubators
SBI Startup
SIDBI Venture
BOB Startup
PNB SME

Startup Business Loan 2026 – Key Features

Loan Amount

₹50,000 to ₹10 Crore

Interest Cost

8.40% to 14.00% p.a.

Capital Subsidy

15% to 35% Margin Money

Eligibility

First-Time Entrepreneurs (18+)

01
Before applying

Eligibility Criteria

Make sure your business meets these basic requirements.

  • Indian national aged 18+ starting a new non-farm business
  • Manufacturing, service, or trading project (PMEGP project cost up to ₹50L/₹20L)
  • First-time entrepreneur with no prior government enterprise subsidy
  • DPIIT recognition required for Startup India Seed Fund Scheme
  • Stand Up India: Greenfield enterprise with ≥51% women or SC/ST ownership
Eligibility Criteria
02
Keep ready

Documents Required

Keep these documents handy to speed up your application.

  • Detailed Project Report (DPR) / Business Plan with financial projections
  • Aadhaar Card & PAN Card (Applicant & Co-founders)
  • Machinery / Equipment Quotations from authorized suppliers
  • Udyam Registration Certificate & DPIIT Certificate (if applicable)
  • Category Certificate (SC/ST/OBC/Women/Ex-servicemen)
  • Proof of Business Premises / Lease Agreement / NOC
Documents Required

How It Works?

1

Draft DPR

Prepare a Detailed Project Report detailing equipment, turnover, and job creation.

✓
2

Apply on Portal

Submit online via kviconline.gov.in (PMEGP) or udyamimitra.in (Mudra).

3

Nodal Review

KVIC/DIC nodal agency reviews project and forwards to bank for sanction.

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4

Disbursal & Subsidy

Bank disburses loan and government credits margin money subsidy to your account.

Launch Your New Venture with Government-Backed Startup Loans

Up to 35% Subsidies
No Track Record Needed
Direct Bank Funding
Check Loan Offers NowIt only takes 2 minutes

Frequently Asked Questions

Clear answers to common questions about startup business loan 2026

Most government startup schemes, including PMEGP and Mudra Shishu, have no minimum income or turnover requirement since they target first-time entrepreneurs with no prior business history. Eligibility is assessed on the project viability and repayment capacity shown in the detailed project report.

Yes. PMEGP applications are submitted online at kviconline.gov.in/pmegpeportal. Mudra loans are applied for at udyamimitra.in. Stand Up India applications go to standupmitra.in. SISFS applications are submitted via seedfund.startupindia.gov.in through an approved incubator.

Core documents include Aadhaar, PAN, proof of business registration, a detailed project report, machinery or equipment quotations, category certificate (if applicable), and KYC documents. PMEGP and Stand Up India specifically require a DPR. SISFS requires a DPIIT recognition certificate and incubator recommendation letter.

Mudra Shishu loans can be processed in 7–15 working days at empanelled banks. PMEGP loans take 30–90 days, the nodal agency (KVIC/KVIB/DIC) must review and forward to the bank before sanction and subsidy routing. SISFS selection by incubators is competitive and may take 60–120 days from application to disbursal.

Yes. Mudra Shishu and PMEGP are specifically designed for first-time borrowers who may have thin or no credit files. The lender assesses project viability through the DPR rather than historical credit behaviour. A nil CIBIL history is not treated as a negative by most government scheme-linked lenders.

For PMEGP, the nodal agency (KVIC/KVIB/DIC) provides written rejection reasons; you may revise the project report and reapply through a different nodal channel or bank. For Mudra, approach a different empanelled lender. Raise grievances at samadhan.msme.gov.in for unresolved cases.