Best Yojanas for Small Businesses and Startups: Get Maximum Benefits

 

Best Yojanas for Small Businesses and Startups: Get Maximum Benefits

Starting and growing a business requires financial support, infrastructure, and proper guidance. To promote entrepreneurship and economic growth, the Indian government has launched several schemes (Yojanas) that provide financial aid, skill development, and other benefits to small businesses and startups. This article explores some of the best government Yojanas designed to support business owners in India.

1. Pradhan Mantri Mudra Yojana (PMMY)

The Pradhan Mantri Mudra Yojana provides collateral-free loans to small businesses, helping entrepreneurs start or expand their ventures.

• Loan Categories:
  • Shishu (Up to ₹50,000)
  • Kishor (₹50,000 to ₹5 lakh)
  • Tarun (₹5 lakh to ₹10 lakh)
• Eligibility: Small business owners, startups, and MSMEs (Micro, Small & Medium Enterprises).
• Benefits: Quick loans with minimal paperwork and no collateral.

2. Startup India Scheme

The Startup India initiative promotes innovation and entrepreneurship by offering financial incentives and ease of business registration.

• Key Features:
  • Tax exemptions for the first three years.
  • Simplified registration via the Startup India portal.
  • Funding support through the Fund of Funds for Startups (FFS).
• Eligibility: Startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).

3. Stand-Up India Scheme

This scheme is designed to empower women entrepreneurs and SC/ST business owners by providing loans for setting up new businesses.

• Loan Amount: ₹10 lakh to ₹1 crore.
• Eligibility: Women and SC/ST entrepreneurs starting new enterprises.
• Benefits: Financial support with low-interest rates and flexible repayment options.

4. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE)

This scheme provides financial support to small businesses by offering loans without the need for collateral.

• Loan Amount: Up to ₹2 crore.
• Eligibility: MSMEs and startups in the manufacturing and service sectors.
• Benefits: Reduced risk for business owners and increased loan accessibility.

5. Atmanirbhar Bharat Rojgar Yojana (ABRY)

ABRY encourages businesses to hire more employees by providing incentives for payroll and EPF contributions.

• Key Features:
  • Government covers 24% of EPF contributions (for businesses with up to 1,000 employees).
  • Benefits available for newly hired employees with salaries below ₹15,000.
• Eligibility: Small businesses hiring new employees.

6. PM Employment Generation Programme (PMEGP)

PMEGP supports individuals in starting small manufacturing or service-based businesses by offering subsidies on loans.

• Loan Amount: Up to ₹25 lakh for manufacturing and ₹10 lakh for service businesses.
• Subsidy:
  • 15-35% of project cost (based on location and category).
• Eligibility: Entrepreneurs above 18 years old with a viable business plan.

7. SIDBI’s Make in India Soft Loan Fund for MSMEs (SMILE)

SMILE provides financial assistance to small businesses involved in manufacturing and service sectors.

• Loan Amount: ₹10 lakh to ₹25 lakh.
• Eligibility: MSMEs under the Make in India initiative.
• Benefits: Low-interest rates and long repayment periods.

Conclusion

Government Yojanas for small businesses and startups provide the necessary financial support, training, and incentives to help entrepreneurs succeed. Whether you need a loan, tax benefits, or skill development, these schemes can be game-changers for your business growth. Entrepreneurs should explore and apply for these Yojanas to maximize their benefits and build successful ventures.