India Startup Loans in 2026: Government Schemes and Bank Options

Government Startup Loan Schemes

India runs more government-backed lending programs for startups than almost any other country. The challenge is identifying which one matches your stage and eligibility.

MUDRA Loans: Shishu, Kishore, Tarun

• Shishu: Up to Rs 50,000. Rates 10–12%. No collateral. Approval rates above 80% at active branches.
• Kishore: Rs 50,001 to Rs 5 lakh. Requires basic documentation.
• Tarun: Rs 5,00,001 to Rs 10 lakh. For established micro-enterprises.

Available at all scheduled banks, RRBs, and MFIs. Processing: 7–14 days at efficient branches, 30+ days at others.

Stand-Up India

For SC/ST and women entrepreneurs: Rs 10 lakh to Rs 1 crore for greenfield enterprises. Rate capped at MCLR + 3%. Repayment up to 7 years with 18-month moratorium. Each bank branch must approve at least one per category.

Key takeaway: Stand-Up India has a mandate for banks to approve at least one loan per branch per category. If you qualify as SC/ST or woman entrepreneur, this should be your first application.

Startup India Seed Fund (SISFS)

Up to Rs 50 lakh for DPIIT-recognized startups. For proof of concept, prototypes, market entry. Operates through approved incubators. Not a traditional loan — grant-like with potential equity/convertible debt.

CGTMSE

Credit Guarantee Fund: collateral-free loans up to Rs 5 crore. Bank accesses the guarantee on your behalf. If your bank cites lack of collateral, specifically ask about CGTMSE-backed lending.

Bank Schemes

• SBI: Startup-specific term loans, SIDBI integration, CGTMSE
• PNB: MSME portfolio aligned with MUDRA/Stand-Up India mandates
• Private banks (HDFC, ICICI, Axis): Prefer 2+ years operations and established revenue

NBFCs and Fintech

• Bajaj Finserv: Up to Rs 80 lakh, 48–72 hour approval, 14–26% rates
• Lendingkart, FlexiLoans: Rs 50K–Rs 25 lakh, 24-hour digital approval, 15–30% rates

What You Need

• UDYAM Registration: Free at udyamregistration.gov.in. Required for government schemes.
• DPIIT Recognition: For Startup India programs. Free at startupindia.gov.in.
• Business plan, bank statements (6–12 months), KYC documents

See our India MSME loans guide and Startup India registration guide.