Which loan is 50% subsidy?

Under schemes like the Dairy Entrepreneurship Development Scheme (DEDS), entrepreneurs can avail subsidies ranging from 25% to 33% of the project cost, depending on their category.

Which bank is best for an MSME loan?

Banks like SBI, Bank of Baroda, Punjab National Bank, and HDFC Bank are popular for MSME loans due to lower interest rates and wider coverage.

Is there any subsidy for an MSME loan?

Yes, MSMEs can access subsidies under Mudra Yojana, Stand-Up India, CGTMSE, DAY-NULM, NRLM, and DEDS, which offer interest subsidies, collateral-free loans, and capital support.

Which loan has the highest subsidy?

The Pradhan Mantri Awas Yojana (PMAY) offers one of the highest subsidies with up to 6.5% interest subsidy on home loans under the Credit Linked Subsidy Scheme (CLSS).

Which loan is better for business?

For micro and small businesses, PMMY (Mudra loans) are better, while for dairy and agriculture-related ventures, DEDS and SMAM offer strong financial support through subsidies.

How to get a 2 crore loan for business?

Businesses can avail up to ₹2 crore collateral-free loans under the CGTMSE scheme, where the government provides a credit guarantee to banks for MSMEs.

Which government scheme is best for business loans?

The MUDRA Yojana (PMMY) is one of the best schemes for small businesses, offering loans up to ₹10 lakh without collateral.

On which business government gives subsidy in India?

Subsidies are given in sectors like agriculture (fertilisers, seeds, machinery), housing (PMAY), dairy farming (DEDS), and MSMEs (Mudra, Stand-Up India, CGTMSE) to encourage growth and self-employment.

Which loan has the highest subsidy?

The Pradhan Mantri Awas Yojana (PMAY) offers one of the highest subsidies with up to 6.5% interest subsidy on home loans under the Credit Linked Subsidy Scheme (CLSS).

Which loan is better for business?

For micro and small businesses, PMMY (Mudra loans) are better, while for dairy and agriculture-related ventures, DEDS and SMAM offer strong financial support through subsidies.

How to get a 2 crore loan for business?

Businesses can avail up to ₹2 crore collateral-free loans under the CGTMSE scheme, where the government provides a credit guarantee to banks for MSMEs.

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Subsidy Scheme - Financial Assistance for Sustainable Development and Growth

Pragya Pathak

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Updated: 18-08-2025 at 3:30 PM

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Subsidies play a major role in shaping India’s socio-economic condition as they act as a significant financial support system for the people of India and allow them to afford goods and services at convenient prices. These subsidies cover a wide range of things like food, fuel, fertilisers, electricity, and others, which directly benefit people from the vulnerable sections of society.

Subsidy schemes in India help reduce inequality and improve the living standards of people, especially in disadvantaged communities. For example, in sectors like agriculture, subsidy schemes enable farmers to access fertilisers, seeds, and electricity at affordable rates to support and promote agricultural productivity and quality food production. This helps the country to avoid severe problems like food shortages.

However, the country still faced problems in the allocation and execution of subsidy schemes, which led the Indian government to adopt the Direct Benefit Transfer (DBT) to ensure that beneficiaries receive the money and there would be minimal risk of cheating practices like corruption. The subsidy schemes in India aren’t merely monetary help, but they also aim to promote social equality, inclusive growth, and long-term economic stability.

Overview

The table below summarises some important details about the government personal loan scheme.

Name of the scheme	Description
Pradhan Mantri Mudra Yojana (PMMY)	It offers loans up to Rs. 10 lakhs, categorised into three levels of businesses.
Pradhan Mantri Awas Yojana (PMAY)	A government personal loan scheme that aims to provide affordable housing, especially for people from the vulnerable sections of society.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)	A government subsidy loan scheme was launched to provide financial support to small and marginal farmers.
Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM)	To reduce urban poverty and enhance livelihood opportunities for the urban poor.
Dairy Entrepreneurship Development Scheme (DEDS)	A government subsidy for businesses that aims to promote self-employment and entrepreneurship in the dairy sector.

Sectors Where Subsidies Are Given

In India, subsidies are provided across various sectors to support the economy and ensure affordability for essential goods and services. Some of the key sectors that receive subsidies are:

Sector	Subsidy
Agriculture	Subsidies are given on fertilisers, seeds, irrigation techniques, machinery, equipment, etc.
Food	Subsidies on essential food grains are given through the use of ration cards.
Energy	Subsidies are provided on fuels like diesel, kerosene, LPG, and solar energy like solar power, wind energy, etc.
Healthcare	Government provides health insurance subsidies to cover hospitalisation expenses.
Education	Subsidies are provided in the form of scholarships, fee reductions, material needed like books and stationery, etc.

Government Subsidy Loan Schemes

The government of India has introduced several govt subsidy loan schemes to provide financial assistance to individuals, including MSME loan subsidy for women, businesses, and people from vulnerable sections of society. These sectors are designed to promote entrepreneurship, housing, education, agriculture, and other sectors. Some of the prominent govt subsidy loan schemes and govt subsidy for business are listed below

1. Pradhan Mantri Mudra Yojana (PMMY)

The Pradhan Mantri Mudra Yojana (PMMY) is a govt subsidy for businesses that was launched to empower small and micro-enterprises by allowing people to access affordable credit services even without putting down collateral. This MSME Loan Subsidy Scheme offers loans up to Rs. 10 lakhs, categorised into three levels of businesses. i.e. Shishu (up to Rs. 50000), Kishore (Rs. 50000 to 5 lakh), and Tarun (Rs. 5 lakh to Rs. 10 lakh). The loan scheme aims to encourage entrepreneurship and financial inclusion, especially for marginalised groups, including MSME loan subsidy for women and rural entrepreneurs.

2. Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana (PMAY) is a government personal loan scheme that aims to provide affordable housing, especially for people from the economically weaker sections of society and middle-income groups in both urban and rural areas. One of the main features of PMAY is the Credit-Linked Subsidy Scheme (CLSS), which provides interest of up to 6.5% on housing loans for 20 years. PMAY makes homeownership a possible dream for many and helps people have a roof of their own.

3. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a government subsidy loan scheme that was launched to provide financial support to small and marginal farmers to invest in agricultural-related practices and improve their income. Under this government scheme, eligible farmers receive direct cash transfers of Rs. 6000 per year, released in three instalments. This income support helps farmers meet essential agricultural expenses like seeds, fertilisers, and other inputs. The scheme serves as a safety net during tough times for the farmers.

4. Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM)

Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) is a flagship initiative by the government of India aimed at reducing urban poverty and enhancing livelihood opportunities for the urban poor. The govt scheme focuses on providing skills training and self-employment opportunities through workshops like Skill Training for Employment, Support for Street Vendors, Self-Help Groups, and others. DAY-NULM aims to improve the living standards of the urban poor and contribute to the overall economic growth and development in urban areas.

5. Dairy Entrepreneurship Development Scheme (DEDS)

The Dairy Entrepreneurship Development Scheme (DEDS) is a government subsidy for businesses that aims to promote self-employment and entrepreneurship in the dairy sector to enhance milk production and improve the livelihoods of dairy farmers. This MSME Loan Subsidy Scheme provides financial aid and support for setting up dairy farms, processing units, and related activities like the production of dairy products like cheese, butter, and yoghurt. Beneficiaries can avail loans up to Rs. 20 lakhs with a capital subsidy ranging from 25% to 33%, depending on the category of the entrepreneur.

Other Government Subsidy Loan Schemes

There are many other government subsidy loan schemes and govt subsidies for business offered by the government of India. Let us have a look at them for better information.

Name of the scheme	Objective	Target beneficiaries	Loan amount	Subsidy
Stand-Up India	It is an MSME loan subsidy for women to promote entrepreneurship among SC/ST and women	MSME loan for women eligibility requires that applicants must be from SC/ST communities and women entrepreneurs	Rs. 10 lakhs to Rs. 1 crore	Credit guarantee and lower interest rates
Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE)	To facilitate collateral-free loans for MSMEs	MSMEs	Up to Rs. 2 crore	Credit guarantee
Pradhan Mantri Rozgar Yojana	To generate self-employment opportunities for the unemployed	Unemployed youth and educated individuals	Up to Rs. 10 lakhs for businesses and Rs. 2 lakhs for services	15% on project cost or Rs. 7500, whichever is lower
National Rural Livelihoods Mission (NRLM)	To reduce rural poverty by promoting self-employment	MSME loan for women eligibility is that the applicant should be from rural poor, especially for women	Varies for self-help groups	Interest subsidy for loans
Sub-Mission on Agricultural Mechanisation (SMAM)	To increase the use of modern machinery in agricultural activities	Farmers and farmer-producer organisations	Up to Rs. 25 lakhs for manufacturing and Rs. 10 lakhs for services	15 to 30% of the project cost
Solar Subsidy Scheme (for rooftop solar plants)	To promote renewable energy adoption in households	Households and small businesses	Varies based on capacity	30% subsidy on the installation cost of solar panels

Conclusion

The subsidy and government personal loan schemes in India provided by the government of India are launched with one sole purpose, and that is to help the citizens of India and reduce the financial burden from their shoulders.

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