Small Business Cheat Sheet – Compilation of All Available Grants and Subsidies

Are you a Micro and Small Enterprise (MSME) looking for a government scheme that can help you scale up? FineTrain has compiled a list of schemes for MSMEs and entrepreneurs across various industries.

This blog has three sections; first section discusses the schemes that are common across all industries, second section talks about industry specific schemes and third section explains schemes for specific category of entrepreneurs such as women.

How to crack subsidies and grants applicable to me?
How to crack subsidies and grants applicable to me?

Common Schemes for all industries

Area/TopicScheme detailsHow to avail these schemes?Remarks
Upgrading TechnologyCredit linked capital subsidy scheme by the office of development commissioner MSMEThe scheme provides a subsidy of up to 15 lakhs for purchase/up gradation of selected machines across all MSME industries.The proposal under CLCSS has to be sent to the bank.Please check FineTrain blog ( Banks are favourably disposed towards this scheme as it is generally given to established enterprises
 Business DevelopmentMarket development assistance by the office of development commissioner MSME (DC MSME) The scheme entails reimbursement of air fare (up to 75%) to participate in international exhibitions and 50% of stall charges, stall charges in domestic trade exhibitions are also reimbursedAssistance  in bar coding- Reimbursement of 75% of  one time registration fee and annual certification fee for three yearsFee  paid to register with GS1 India (a barcoding service provider)Contact nearest District Industry Centre (DIC) or MSME development institution (MSME DI)MSME development institutes typically work with industry associations
Improving quality/obtaining quality certificationsReimbursement of charges spent on acquiring quality certificates (ISO 9000, ISO 140001 and HACCP (A quality certification for food processing enterprises) The maximum reimbursement is limited to 75% of actuals or 75,000 in each caseProposal to be submitted to MSME development institutes 
Getting infrastructure such as common testing lab, effluent testing facilitiesGrant for setting up common facilities for an industrial cluster as part of Cluster Development Programme (CDP) by the office of development commissioner MSME.Can be availed only if there are more than 25 enterprises looking for common facilities. One can contact cluster development consultant such as “Foundation for MSME clusters”.This can be time consuming, as it involves bringing many enterprises together
Collateral free funds/low interest fundsCredit guarantee trust for Micro and Small Enterprises (CGTMSE)A collateral free loan of up to Rs. 1 croreApply to the nearest public sector bank branch, difficult to avail a loan under this scheme for amount exceeding Rs. 10 lakhsRecommended for loans up to Rs. 10 lakhs

Schemes related to specific industries

Now let us talk about schemes that promote specific business such as food processing, dairy, solar technology, information technology, sericulture, cold storage, fisheries.

Industry/SectorSchemeHow to avail the scheme?
Animal HusbandryDairy entrepreneurship development scheme from NABARD 25% subsidy (on the project cost) is provided on a number of activities related to dairy such as dairy farm, purchase of dairy processing equipment, cold storage facilities. proposal has to be submitted to public sector banks, who in turn will apply to NABARD for subsidy.
AgricultureA number of schemes from  APEDA (Agriculture and processed food products export development body)  providing a grant of up to 40% of project cost for  Setting up infrastructure related to handling of agricultural produce. The infrastructure includes facilities for handling, storage, transport of agricultural cropsGrant for acquiring quality certifications, setting up testing labsReimbursement of expenses for training for the staff of exportersSchemes are available only for exporters of agricultural products (specified by APEDA). One has to register with APEDA. One needs a track record of at least three years of export.
Textile Technology up gradation Fund scheme from Ministry of TextilesA combination of interest cost reimbursement(up to 5%,) and capital subsidy (up to 15% of investment in machinery) for existing and new units in weaving/spinning /garment/technical textile/handlooms/Jute sector. to both existing and new units.Application has to be made to the nodal bank
LeatherIntegrated development of leather sector (ILDS) Provides up to 30% subsidy on cost of machines to Micro and small enterprises and 20% subsidy to others. The subsidy capped at Rs. 2 crore per product line.·         Modernization of tanneries·         Modernization of footwear & footwear components units·         Modernization of leather product units·         Modernization of Harness & saddlery unitsThe scheme is available to existing units, with at least 2 years of cash profits. The application has to be made to public sector banks
Micro business up to 25 lakhsPrime Ministers employment generation program (PMEGP), provides 25 to 35% of subsidy for projects under 25 lakhs. invites application through a newspaper ad in July/August. Entrepreneurs are selected through an interview.
Information technology/digital sector NASSCOMs 10,000 start-up programmeThe selected applicants are provided co working space, mentorship  and an opportunity to pitch to investorsApply through NASSCOM website
Information technologyNASSCOM’s Start up warehouse programmeCurrently available in Bangalore and Calcutta. The start-ups are provided co working spaces and infrastructureApply through NASSCOM website
ITESDepartment of electronics and IT (DietY) ‘s scheme for promotion of BPOs in North East region The scheme proposes to fund 50% of the capital expenditure (maximum Rs. 1 lakh per seat) in setting up a BPO in the NE region.STPI (Software technology parks of India) invites bids on behalf of DietY . Bidders need to submit technical and financial bids.
Electronic goods       Scheme by department of electronics and IT (DietY)The scheme covers reimbursement of  charges incurred towards a getting  the products tested for quality  for domestic market and exports has to be made to DietY

Schemes for women and minority entrepreneurs

Category of entrepreneursScheme detailsHow to avail these schemes?
WomenHigher subsidy to women under PMEGPInvestment subsidy/Seed capital schemes of state governmentsBank schemes for women entrepreneursIn order to avail of these schemes, women need to be the majority owner/single owner of the enterprise.The state governments offer a number of incentives such as investment subsidy, seed capital through their industrial policies Stree Shakti from SBI ( lower margin money at 20% of loan amount, no collateral up to loan value of Rs. 5 lakhs)Cent Kalyani from Central bank (lower margin money at 20% of total loan amount, no processing fee)Other public sector banks also offer similar schemes
SC EntrepreneursIFCI Dalit entrepreneur fund   Incentives from the state governmentsA fund for SC entrepreneurs, the fund invest in both debt and equity capital. Minimum size is Rs. 50 lacs. The enterprise should be at least 1 year old and SC entrepreneurs should own at least 60% of stake in it.All state governments offer benefits such as investment subsidy, seed capital to SC/ST entrepreneurs
SC entrepreneursNational Scheduled Castes Finance and Development Corporation (NSCFDC) schemesState  SC cooperative finance corporation schemesNSCFDC  provides loans (up to Rs. 30 lakhs) at concessional rates (ranging from 2 to 10%) to SC entrepreneurs from poor economic background  with annual income of less than Rs. 1 lakh per anuum.Both AP and Telangana have state cooperative finance corporations. Their schemes provide credit linked subsidy for loans up to 2 lacs. The subsidy is up to 50% of the project cost or 30,000 (whichever is less), balance is met through bank loan and entrepreneurs contribution. 

How to choose among various schemes?

The scheme selection should be done based on the following parameters

Coverage under schemeIf you are starting a project that is covered by a specific ministry such as ministry of food processing, solar technology, it is always beneficial to apply as part of such programme, rather than a general scheme such as CGTMSE, PMEGP

Time taken to get the funds– The time taken to get the funds could be very high up to 1 year in some of the schemes such as PMEGP

How can FineTrain help you?

We can:

Help you understand eligibility and select among a number of schemes

Assist you finetune you project proposal/ application form for subsidy

Provide other support till the loan is disbursed

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Subsidised small business loans to first time micro entrepreneurs

Prime Minister’s Employment Generation Programme (PMEGP)

The GOI (Government of India) is currently accepting applications under PMEGP, a programme which allows a subsidised small business loan (subsidy up to 35% of the project cost) to first time entrepreneurs. FineTrain brings you details of how you can benefit from the scheme…

What is PMEGP?

Prime Minister’s employment generation programme (PMEGP) is a credit linked subsidy programme to support generation of self-employment through setting up of Micro (enterprises with investment of Rs. 25 lakhs or less) enterprises in rural and urban areas.

“Credit linked” means that subsidy is linked to the bank credit and is only available if the unit /enterprise is able to secure a bank loan for the remaining amount (project cost minus subsidy –minus his own contribution).


Small Business - take benefit of various schemes meant for you.
Small Business – take benefit of various schemes meant for you.

How much subsidy do I get?

Categories of beneficiaries under PMEGPBeneficiary’s contribution (of project cost)Rate of subsidy of project cost
General category10%15%25%
Special (Women, SC, ST, OBC, Ex-service men, physically handicapped, Entrepreneurs from North Eastern Areas, Hill areas and Border areas)5%25%35%

 The rate of subsidy varies from 15% (on projects located in urban areas and promoted by a general category male) to 35% (project located in rural area and promoted by special category entrepreneurs). The remaining amount (excluding beneficiary’s contribution and subsidy) has to be met through a bank loan.

Eligibility Criteria

  • You should be above 18 years of age and first time entrepreneur
  • PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities indicated in the negative list of Village Industries (please see annexure1)
  • The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh. The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh

Where do I apply for the scheme?

You can apply online on PMEGP website ( and submit the printout of the application along with the required documents to your nearest KVIC (Khadi and Village Industries Commission) office or DIC (district Industry Centre).  A link to the application from is given below-

You can also submit the hardcopy of the application directly to nearest KVIC office or DIC office.

Further, you can also check with your nearest government bank if they would like to sponsor/recommend your application.

What are my chances of getting selected?

GOI receives huge number of applications, with less than 20% getting selected. So your project has to be viable and should generate local employment.

What is the selection process?

The PMEGP applicants are shortlisted through an interview process. The interview panel comprises KVIC, DIC and bank officers.

What is the process of getting a loan?

Once you are selected, you need to visit the bank branch (you need to mention the name of bank/branch in your application) to start the loan process. Once the first two instalments of the loan are disbursed, the GOI credits the subsidy in the same account.

How long does it take to get the loan?

The time period could be up to 6  to 9 months from the date of application. The applications are invited in July-August. The interviews and selection takes place by December/January and loan could be disbursed by April/May.

How can FineTrain assist you?

We can assist you understand viability and eligibility of your project and assist you in the preparation and submission of the project report and application.

Annexure I

List of industries not allowed under PMEGP 

(1)Any industry/business connected with Meat(slaughtered),i.e. processing, canning and/or serving items made of it as food, production/manufacturing or sale of intoxicant items like Beedi/Pan/ Cigar/Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale.
(2)Any industry/business connected with cultivation of crops/ plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry like Pisciculture, Piggery, Poultry, Harvester machines etc.
(3)Manufacturing of Polythene carry bags of less than 20 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item which causes environmental problems.
(4)Industries such as processing of Pashmina Wool and such other products like hand spinning and hand weaving, taking advantage of Khadi Programme under the purview of Certification Rules and availing sales rebate.
(5)Rural Transport (Except Auto Rickshaw in Andaman & Nicobar Islands, House Boat, Shikara & Tourist Boats in J&K and Cycle Rickshaw).

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