15 Best Small Business Subsidy you should know about.


The life of a small business owner is not easy! Luckily, the Government has a similar opinion. Many benefits are provided both by the Central and State Governments to pro­mote the growth of small-scale businesses like yours.

Here is a list of 15 Best Government Subsidy For Small Business like yours in India

#1. The Credit Guarantee Fund Scheme (CGTMSE) for MSMEs

  • Only Micro & Small Enterprises as per the MSMED Act are eligible.
  • Both the Manufacturing and Service sectors covered.
  • Under this scheme, you can get loans of up to Rs. 100 lakhs.
  • No collateral deposit required.
  • Both Term Loans & Working Capital Loans are offered under this scheme.
  • No third party guarantees required.
  • Both existing and new enterprises are eligible for loans under this scheme.
  • Having IT PAN number is compulsory to avail this loan.

List of Banks Who Provide Loans under CGTMSE Scheme

  • Public Sector Banks (21 nos.)

  • 1 Allahabad Bank
  • 2 Andhra Bank
  • 3 Bank of Baroda
  • 4 Bank of India
  • 5 Bank of Maharashtra
  • 6 Bharatiya Mahila Bank Ltd.
  • 7 Canara Bank
  • 8 Central Bank of India
  • 9 Corporation Bank
  • 10 Dena Bank
  • 11 IDBI Bank Limited
  • 12 Indian Bank
  • 13 Indian Overseas Bank
  • 14 Oriental Bank of Commerce
  • 15 Punjab & Sind Bank
  • 16 Punjab National Bank
  • 17 Syndicate Bank
  • 18 UCO Bank
  • 19 Union Bank of India
  • 20 United Bank of India
  • 21 Vijaya Bank
  • SBI & Its Associates Banks (6 nos.)

  • 1 State Bank of India
  • 2 State Bank of Bikaner & Jaipur
  • 3 State Bank of Hyderabad
  • 4 State Bank of Mysore
  • 5 State Bank of Patiala
  • 6 State Bank of Travancore
  • Private Sector Banks (21 nos.)

  • 1 Axis Bank Ltd.
  • 2 Catholic Syrian Bank Ltd.
  • 3 City Union Bank
  • 4 Development Credit Bank Ltd.
  • 5 HDFC Bank Ltd.
  • 6 ICICI Bank Ltd.
  • 7 IDFC Bank Ltd.
  • 8 IndusInd Bank Ltd.
  • 9 ING Vysya Bank Ltd.
  • 10 Karnataka Bank Ltd.
  • 11 Kotak Mahindra Bank Ltd.
  • 12 Lakshmi Vilas Bank Ltd.
  • 13 Tamilnad Mercantile Bank Ltd.
  • 14 The Dhanalakshmi Bank Ltd.
  • 15 The Federal Bank Ltd.
  • 16 The Jammu & Kashmir Bank Ltd.
  • 17 The Karur Vysya Bank Ltd.
  • 18 The Nainital Bank Ltd.
  • 19 The Ratnakar Bank Ltd.
  • 20 The South Indian Bank Ltd.
  • 21 YES Bank Limited
  • Foreign Banks (4 nos.)

  • 1 Barclays Bank PLC
  • 2 Bank of Bahrain and Kuwait
  • 3 Deutsche Bank
  • 4 Standard Chartered Bank
  • Regional Rural Banks (66 nos.)

  • 1 Allahabad UP Gramin Bank
  • 2 Andhra Pradesh Grameena Vikas Bank
  • 3 Andhra Pragathi Grameena Bank
  • 4 Aryavart Gramin Bank
  • 5 Assam Gramin Vikash Bank
  • 6 Baitarani Gramya Bank
  • 7 Ballia Etawah Gramin Bank
  • 8 Bangiya Gramin Vikash Bank
  • 9 Baroda Gujarat Gramin Bank
  • 10 Baroda Rajasthan Gramin Bank
  • 11 Baroda Uttar Pradesh Gramin Bank
  • 12 Bihar Kshetriya Gramin Bank
  • 13 Chaitanya Godavari Grameena Bank
  • 14 Chattisgarh Rajya Gramin Bank
  • 15 Dena Gujarat Gramin Bank
  • 16 Hadoti Kshetriya Gramin Bank
  • 17 Himachal Gramin Bank
  • 18 Jaipur Thar Gramin Bank
  • 19 Jammu & Kashmir Gramin Bank
  • 20 Jharkhand Gramin Bank
  • 21 Karnataka Vikas Grameena Bank
  • 22 Kashi Gomti Samyut Gramin Bank
  • 23 Kaveri Grameena Bank
  • 24 Kerala Gramin Bank
  • 25 Langpi Dehangi Rural Bank
  • 26 Madhya Bharat Gramin Bank
  • 27 Madhya Bihar Gramin Bank
  • 28 Maharashtra Godavari Gramin Bank
  • 29 Maharashtra Gramin Bank
  • 30 Malwa Gramin Bank
  • 31 Meghalaya Rural Bank
  • 32 MGB Gramin Bank
  • 33 Mizoram Rural Bank
  • 34 Nainital – Almora Kshetriya Gramin Bank
  • 35 Narmada Malwa Gramin Bank
  • 36 Neelachal Gramya Bank
  • 37 Pallavan Gramin Bank
  • 38 Pandyan Grama Bank
  • 39 Parvatiya Gramin Bank
  • 40 Pragathi Krishna Grameena Bank
  • 41 Prathama Bank
  • 42 Puduvai Bharathiar Grama Bank
  • 43 Punjab Gramin Bank
  • 44 Purvanchal Gramin Bank
  • 45 Rajasthan Gramin Bank
  • 46 Rewa Siddhi Gramin Bank
  • 47 Rushikulya Gramya Bank
  • 48 Samastipur Kshetriya Gramin Bank
  • 49 Saptagiri Grameena Bank
  • 50 Sarva Haryana Gramin Bank
  • 51 Sarva UP Gramin Bank
  • 52 Satpura Narmada Kshetriya Gramin Bank
  • 53 Saurashtra Gramin Bank
  • 54 Sharda Gramin Bank
  • 55 Shreyas Gramin Bank
  • 56 Sutlej Gramin Bank (SGB)
  • 57 Telangana Gramin Bank
  • 58 Tripura Gramin Bank
  • 59 Triveni Kshetriya Gramin Bank
  • 60 Uttar Bihar Gramin Bank
  • 61 Uttaranchal Gramin Bank
  • 62 Uttarbanga Kshetriya Gramin Bank
  • 63 Vananchal Gramin Bank
  • 64 Vidharbha Kshetriya Gramin Bank
  • 65 Vidisha Bhopal Kshetriya Gramin Bank
  • 66 Wainganga Krishna Gramin Bank

For more details about this scheme – Click here

#2. Government Subsidy For Organic Farming

  • Individuals, a group of farmers/growers, proprietary, and partnership firms, Co-operatives, Fertilizer industry, Companies, Corporations, and NGOs are eligible to get the subsidy for biofertilizer and biopesticide manufacturing operation.
  • APMCs, Municipalities, NGOs and Private entrepreneurs are eligible to get the subsidy for fruit and vegetables waste compost unit.
  • Azotobacter, Rhizobium, PSB, Azospirillum, Acetobacter, Trichoderma, and Mycorrhiza are some of the profitable products, you can start manufacturing under this scheme.

The major objectives of the scheme are

  • To promote organic farming in the country by making available organic inputs such as biofertilizers, Biopesticides, and fruit & vegetable market waste compost.
  • To increase agricultural productivity while maintaining soil health and environmental safety.
  • To reduce the total dependence on chemical fertilizers and pesticides by increasing the availability and improving the quality of biofertilizers, biopesticides, and composts in the country.
  • To convert organic waste into plant nutrient resources.
  • To prevent pollution and environment degradation by proper conversion and utilization of organic waste.

For more details about this scheme – Click here

#3. Technology Upgradation Fund Scheme (TUFS) For Textile Industry

  • The Ministry of Textile launched this Scheme to help the textile entrepreneurs in India.
  • Basically, the scheme has a provision of a one-time capital subsidy for eligible benchmarked machinery at the rate of 15%.
  • The subsidy is for garments and technical textiles segments with a cap of Rs. 30 crores.
  • In addition, one can avail the subsidy at the rate of 10% for weaving, processing, jute, silk and handloom segments with a cap of Rs. 20 crores.
  • Reimbursement of 5% on the interest charged by the lending agency on a project of technology up gradation in conformity with the Scheme.
  • In weaving – (i) 6% Interest Reimbursement (IR) and 15% Capital Subsidy (CS) on brand new shuttleless looms or 30% Margin Money Subsidy (MMS) for power loom sector. (ii) 2% IR or 8% MMS on second hand imported shuttleless looms with 10 years vintage and with a residual life of 10 years; (iii) for 30% MMS- the capital ceiling of Rs. 5 crores and subsidy cap of Rs. 1.5 crore would be adhered to encourage adequate investment by MSME sector.
  • Cover for foreign exchange rate fluctuation / forward cover premium not exceeding 5% for all segments except for new stand alone / replacement/modernization of spinning machinery for which the foreign exchange rate fluctuation/forward cover premium will be 2%.
  • An option to MSME textile and jute sector to avail of 15% Margin Money subsidy instead of 5% interest reimbursement on investment in TUF compatible specified machinery subject ceiling on margin money subsidy of Rs. 75 lakh.
  • 5% interest reimbursement plus 10% capital subsidy for specified processing, garments and technical textile machinery.
  • Interest subsidy/capital subsidy / Margin Money subsidy on the basic value of the machinery excluding the tax component for the purpose of valuation.
  • 30% capital subsidy instead of 5% interest reimbursement on benchmarked machinery of the silk sector as applicable for the Handloom sector.
  • The Scheme will cover only automatic shuttleless looms of 10 years vintage and with a residual life of minimum 10 years.
  • Investments like factory building, pre-operative expenses and margin money for working capital are eligible for benefit of reimbursement under the Scheme meant for the apparel sector and handloom with a 50% cap.
  • Interest reimbursement period is 7 years including implementation/moratorium period.

For more details about this scheme – Click here

#4. Scheme for Technology Upgradation/ Establishment/ Modernization for Food Processing Industries

  • This Scheme covers the following activities: Setting up/expansion/modernization of food processing industries covering all segments viz fruits & vegetables, milk products, meat, poultry, fishery, oilseeds and such other agri-horticultural sectors leading to value addition and shelf life enhancement including food flavours and colours, oleoresins, spices, coconut, mushroom, hops.
  • The assistance is in the form of grant subject to 25% of the plant & machinery and technical civil works subject to a maximum of Rs. 50 lakh in General Areas and 33.33% up to Rs. 75 lakh in Difficult Areas.

    For more details about this scheme – Click here

#5. Integrated Development of Leather Sector – Scheme for Leather Industry

  • The scheme is open to all existing units in the Footwear, Leather and other accessories including tanneries, saddlery, leather goods, leather footwear, footwear component sector and non-leather footwear.
  • The units should have a cash profit for 2 years.
  • They also should be continuously undertaking successful and bankable programs on technology up-grading on or after January 1, 2016.
  • The scheme is also open to new units provided they meet certain criteria.
  • The new units seeking assistance under the Integrated Development of Leather scheme would be considered only if the project is evaluated and appraised. It should be found to be bankable and viable by the bank that will be providing the GOI assistance.
  • In case the units are capable of self-financing, then the project viability will be done based on the strength of the working-capital of such units.

For more details about this scheme – Click here

#6. Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)

  • To help SMEs flourish in international trade markets, the Ministry of Small Scale Industries (SSI) runs a scheme for technology up gradation of Small Scale Industries.
  • It aims at facilitating technology upgradation by providing upfront capital subsidy of 15% (limited to a maximum of Rs.15 lakhs) to SSI units for credit availed by them for the modernization of their plant and machinery.
  • All sole proprietorships, partnership firms, cooperative, private and public limited companies are eligible for this scheme.

For more details about this scheme – Click here

#7. Market Development Assistance Scheme for Micro, Small & Medium Enterprises

  • The scheme offers to fund for participation by manufacturing Small & Micro Enterprises in International Trade Fairs/ Exhibitions under MSME India stall.
  • The objective of this scheme is to encourage small and micro exporters in their efforts at tapping and developing overseas market.

For more details about this scheme – Click here

#8. Technology & Quality Upgradation Support for MSMEs

  • In an effort to increase the adoption of quality standards by the MSME sector of India, Government provides this subsidy.
  • Basically, this is for acquiring ISO certifications like ISO 9000, ISO 14001 and HACCP.
  • Also, it aims to expand the domestic and global market share of Indian MSME products.
  • This scheme focuses on the two important aspects, namely, enhancing the competitiveness of the MSME sector through Energy Efficiency and Product Quality Certification.
  • The second objective is to improve the product quality of MSMEs and to encourage them towards becoming globally competitive

For more details about this scheme – Click here

#9. Mini Tools Room and Training Centre Scheme

  • Here, the Govt. wants to provide technical support to the MSMEs and training facility in tool manufacturing and tool design to create a workforce of skilled workers, supervisors, engineers/designers, etc.
  • The objectives of the Mini Tool Room & Training Centres would be-

    To manufacture Jigs, fixtures cutting tools, gauges, press tools, plastic moulds, forging dies, pressure casting dies and other toolings for Small Scale Industries.

    ✔ 
    Advanced tool making process using CAD/CAM techniques are to be adopted.

    ✔ 
    To provide training facility in tool manufacturing and tool design to generate a workforce of skilled workers, supervisors, engineers/designers etc.

    ✔ 
    To work as a Nucleus Centre for providing Consultancy, information service, documentation etc, for solving the problems related to toolings of industries in the region.

    ✔ 
    To act as a common facility Centre for small scale industries and to assist them in product and prototype development.

For more details about this scheme – Click here

#10. Government Subsidy for Small Business from NSIC

  • NSIC provides two basic subsidies. Raw material assistance and marketing assistance.

Raw Material Assistance Scheme aims at helping Small Scale Industries/Enterprises by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity for SSI to focus better on manufacturing quality products.

Marketing support is provided to Micro, Small & Medium Enterprises through National Small Industries Corporation (NSIC) to enhance competitiveness and marketability of their products.

For more details about this scheme – Click here

#11. Government Subsidy for Small Business for Cold Chain

  • Individual, Groups of Entrepreneurs, Cooperative Societies, Self Help Groups(SHGs), Farmers Producer Organizations (FPOs), NGOs, Central/State PSUs etc. with a business interest in Cold Chain solutions are eligible to set up an integrated cold chain and preservation infrastructure and avail grant under the Scheme
  • First of all, the applicant must have a sound financial background. You must have a Net worth more than 1.5 times of the grant applied for.
  • The objective of the scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities without any break from the farm gate to the consumer.
  • It covers pre-cooling facilities at production sites, reefer vans, mobile cooling units as well as value addition centres.
  • Basically, the centres that include infrastructural facilities like Processing/Multi-line Processing/ Collection Centres, etc. for horticulture, organic produce, marine, dairy, meat, and poultry etc.

For more details about this scheme – Click here

#12. Under Technology Mission on Coconut (TMOC) For Coconut Producing Units

  • Any individual can avail the assistance for setting up of coconut-based industry other than the husk.
  • Technology for the different products is available with the board on payment of technology transfer fee. The product list includes virgin coconut oil and dietary fibre, packing of tender coconut water, spray dried milk powder, vinegar, and other convenience foods.

For more details about this scheme – Click here

#13. SAMPADA Scheme for Agro-Marine Produce Processing

  • SAMPADA stands for Scheme for Agro-Marine Produce Processing and Development of Agro-Processing Clusters.
  • With a budget of Rs. 6000 Crores, the SAMPADA scheme is aimed to integrate current and new schemes in the food processing sector.
  • The main objective is reducing food wastage and doubling farmers’ income.
  • Also, it includes new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation / Expansion of Food Processing & Preservation Capacities.
  • SAMPADA is a comprehensive package to give a renewed thrust to the food processing sector in the country.
  • It aims at the development of modern infrastructure to encourage entrepreneurs to set up food processing units based on cluster approach.
  • It provides effective and seamless backward and forward integration for processed food industry by plugging gaps in supply chain and the creation of processing and preservation capacities and modernization/ expansion of existing food processing units.
  • The implementation of SAMPADA will result in the creation of modern infrastructure with efficient supply chain management from farm gate to the retail outlet.
  • It will not only provide a big boost to the growth of food processing sector in the country but also help in providing better prices to farmers and is a big step towards doubling of farmers’ income.
  • It will create huge employment opportunities, especially in the rural areas.
  • It will also help in reducing wastage of agricultural produce, increasing the processing level. Additionally, customers can expect the availability of safe and convenient processed foods at an affordable price.

For more details about this scheme – Click here

#14. Government Subsidy for Small Business – Dairy Farming

  • In an effort to further strengthen the dairy farming industry in India, the NABARD dairy farming subsidy was launched.
  • In addition to milk, the manure from animals provides a good source of organic matter for improving soil fertility and crop yields.
  • The gobar gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well.
  • The surplus fodder and agricultural by-products are gainfully utilized for feeding the animals.

For more details about this scheme – Click here

#15. Government Subsidy for Small Business for Horticulture

  • National Horticulture Board (NHB) was set up by the Government of India in 1984.
  • Basically, it is an autonomous society under the Societies Registration Act 1860.
  • The objectives of the National Horticulture Board are the development of hi-tech commercial horticulture, development of modern post-harvest management infrastructure, promotion, market development of fresh horticultural produce and more.

For more details about this scheme – Click here

What do you think about these subsidies provided by the Government? Please comment below.

Stay updated about the Latest Business Tips on Vyaparapp.in.

Download the BEST Free Billing Software

Happy Vyaparing!!!

Share This Story

Business Tips, English

You May Also Like

Leave a Reply