Top Government Schemes Offering Subsidized Loans in 2025 (India)

Government Loan Schemes That Can Empower You in 2025

Are you planning to start a business, renovate your home, or need funds for education or farming? The Indian government offers a range of loan schemes with low interest and no collateral, designed to help individuals, small business owners, and farmers achieve financial freedom.

Here’s a detailed guide to the top government-subsidized loan schemes in India for 2025, including eligibility, interest rates, and how to apply.

1. PM Mudra Yojana (Pradhan Mantri MUDRA Loan)

• Loan Amount: ₹50,000 to ₹10 Lakhs
• Interest Rate: 7.30% – 12%
• Eligibility: Non-corporate small businesses, self-employed, MSMEs
• Collateral: Not required
• Tenure: Up to 5 years
• Types: Shishu (up to ₹50K), Kishore (₹50K–₹5L), Tarun (₹5L–₹10L)

Read more About PM Mudra Yojana

2. Stand-Up India Scheme

• Target Group: SC/ST or women entrepreneurs
• Loan Amount: ₹10 Lakhs – ₹1 Crore
• Purpose: For setting up Greenfield enterprises in manufacturing, services, or trading
• Interest Rate: Bank-dependent (usually around 7.5% – 9%)
• Margin Money: Minimum 10%

Read more about Stand-Up India Scheme

3. Kisan Credit Card (KCC)

• Loan Amount: Up to ₹3 Lakhs
• Interest Rate: 4% (after 2% interest subvention)
• Eligibility: Farmers involved in crop production and allied activities
• Collateral: Not required for up to ₹1.6L

Read more about Kisan Credit Card

4. PMAY – Home Loan Subsidy under CLSS

• Full Name: Pradhan Mantri Awas Yojana (Credit Linked Subsidy Scheme)
• Interest Subsidy: Up to 6.5% on housing loan interest
• Eligibility: EWS, LIG, and MIG groups
• Max Loan Tenure: 20 years
• Purpose: First-time home purchase or construction

Know More about PMAY Home Loan Subsidy

5. Central Sector Interest Subsidy Scheme (Education Loans)

• Eligibility: Annual family income ≤ ₹4.5 Lakh
• Loan Coverage: Up to ₹7.5 Lakh
• Subsidy: Full interest during the moratorium (course duration + 1 year)
• Banks Covered: Scheduled commercial banks

Know more about Education Loans

Eligibility Criteria (General Guidelines)

• Valid Aadhaar & PAN card
• Purpose-specific documentation (e.g., business proposal for Stand-Up India)
• No previous loan defaults (especially for PMAY and Mudra)
• Caste or gender-based eligibility for specific schemes like Stand-Up India

Where to Apply

• Official scheme websites (e.g., mudra.org.in, standupmitra.in)
• Partnered banks (SBI, HDFC, ICICI, Bank of Baroda, etc.)
• Udyam Registration for MSME benefits
• Jan Seva Kendra or CSCs

FAQs – Government Loan Schemes India 2025

Q. Can I apply for a government loan online?
A. Yes, most schemes are accessible via government portals or through bank websites.

Q. Is a CIBIL score required for PM Mudra Yojana?
A. No strict score required, but repayment ability is evaluated.

Q. What’s the difference between Mudra and Stand-Up India?
A. Mudra is for micro-businesses, while Stand-Up India is for women and SC/ST-led larger ventures.