A lot of people in India search for government personal loan schemes, hoping to find help with daily expenses, medical bills, or starting something of their own. But when they come across names like Mudra, PMEGP, or Stand-Up India, it gets confusing. Are these personal loans? Business loans? Or something else?

Let’s clear this up. Most of the government schemes are actually meant to support self-employment or small businesses. So technically, they aren’t personal loans for consumption or emergencies. But if you're someone looking to start a shop, service, or any small venture, these can be really useful.

Go through these 5 government-backed loan schemes that you should know about in 2025:

1. Pradhan Mantri Mudra Yojana (PMMY)

• Target Audience: Small traders, vendors, entrepreneurs
• Loan Range: Up to ₹10 lakh
• Divided into: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh)
• No collateral needed. Collateral means an asset, like property, gold, or a vehicle, that you promise to the lender as security in case you fail to repay the loan.
• Apply at: Any major bank or through https://mudra.org.in

Perfect for someone planning to start a small business like a beauty parlour, grocery shop, etc.

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2. PMEGP (Prime Minister’s Employment Generation Programme)

• Target Audience: First-time entrepreneurs
• Loan Range: Up to ₹25 lakh (manufacturing) or ₹10 lakh (service sector)
• Subsidy: 15% to 35% based on location and category
• Requires a business proposal
• Apply via: https://www.kviconline.gov.in/pmegp 

Best if you're starting a new manufacturing unit or service center, especially in rural or semi-urban areas.

3. Stand-Up India Scheme

• Target Audience: SC/ST and Women entrepreneurs
• Loan Range: ₹10 lakh to ₹1 crore
• Must be for a greenfield (new) business
• 75% of the project cost can be financed
• Apply at: https://www.standupmitra.in

Suitable if you're a woman or belong to the SC/ST category and want to start something on a bigger scale, like a food processing unit, manufacturing, or even packaging.

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4. National Urban Livelihood Mission (NULM) - Self-Employment Programme

• Target Audience: Urban poor
• Loan: Up to ₹2 lakh for individuals; higher for group enterprises
• Interest Subsidy: 5%-7%
• Training support included
• Apply via: Urban Local Bodies or State Mission Management Units

Great option if you live in a city or town and want to start your own small business with limited capital.

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

• Target Audience: MSEs (including first-time entrepreneurs)
• Collateral-Free Loan: Up to ₹2 crore
• Loan given by approved banks and NBFCs
• Credit guarantee cover for lenders
• Apply at: Banks participating in CGTMSE

Useful for those who have a business idea but no collateral to show.

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Which One Should You Choose?

If you're:

• A woman or SC/ST candidate → Check Stand-Up India
• Planning a business in city areas → Look into NULM
• Just starting small → Go with Mudra (Shishu)
• Expanding a setup in rural areas → Try PMEGP
• Need collateral-free help → Explore CGTMSE

Just remember that these are not instant personal loans for buying gadgets or planning a trip. Yeh schemes un logon ke liye hain jo apna kuch kaam shuru karna chahte hain.

Aapka sapna ho, aur thoda planning ho, toh government bhi saath dene ko ready hai.

Ghar baithe Adhaar card kaise banaye! Biometrics, Mobile, DOB aur address update karne ki puri online process aur zaroori documents ke baare mein jankari lein.

Frequently Asked Questions

1. Is a CIBIL score necessary to get these loans?

Not always. Mudra loans (especially Shishu) often don't require a high credit score. But for larger loans like CGTMSE or Stand-Up India, banks will check your credit history.

2. Can students apply for any of these loan schemes?

Most of these schemes are meant for setting up a business, so students can apply only if they are starting a venture and meet the eligibility criteria.

3. Is there a subsidy or margin money support in any of these schemes?

Yes. PMEGP offers a subsidy of up to 35%, and Stand-Up India finances up to 75% of the project cost. You need to cover the rest as margin money.

4. Can I use these loans for medical or personal expenses?

No. These are not general personal loans. They are specifically for self-employment or business purposes only.