Top 10 Government Schemes for MSMEs and Startups — Capital Subsidies, Credit Guarantees, Interest Subvention and Export Incentives Compared on One Page
₹5 crore
Largest grant on the list — CEFPPC for food processing (35–50% of eligible cost)
₹10 crore
Collateral-free credit guarantee ceiling under CGTMSE (from 1 April 2025)
3%
Interest subvention on AIF loans up to ₹2 crore for seven years
6% + 75%
RIPS 2024 interest subsidy and SGST reimbursement — the state layer
Guide by BookMyCA's Chartered Accountants · pan-India serviceLast verified against official guidelines on 6 September 2026.
Video Explanation & Insights
Every government subsidy for your business explained in one video
3 videos on this topic
Ten schemes compared
| # | Scheme | Who | Benefit | Notes |
|---|---|---|---|---|
| 1 | PM Kisan SAMPADA — CEFPPC | Food processing units of any constitution | 35% (50% for SC/ST and difficult areas) of eligible project cost, up to ₹5 crore | Applications open in windows through an EOI; minimum project size and 20% term loan as the video explains |
| 2 | PMFME | Micro food processing units, ODOP products | 35% credit-linked capital subsidy, up to ₹10 lakh | For the small unit that does not fit CEFPPC; construction to house the machine is eligible |
| 3 | PMEGP | New manufacturing (₹50 lakh) and service (₹20 lakh) projects | 15% / 25% / 35% margin-money subsidy by category and location | Guaranteed subsidy once the loan is sanctioned; machinery must be at least 60% of the project as the video notes; windows open and close |
| 4 | SCLCSS | SC/ST-owned MSEs | 15% of term loan on plant, machinery and commercial vehicles, loan up to ₹1 crore | Funds always available; minimum loan ₹10 lakh in practice |
| 5 | CGTMSE | Micro and small enterprises, all categories | Collateral-free guarantee on loans up to ₹10 crore (raised from ₹5 crore on 1 April 2025) | Banks prefer one to three years of vintage; term loans easier than CC |
| 6 | Venture Capital Fund for SCs / National SC-ST Hub | Companies with at least 51% SC/ST ownership | Equity or quasi-equity funding, ₹25 lakh upwards | Debt options also available through the Hub |
| 7 | Agriculture Infrastructure Fund | Post-harvest infrastructure — warehouses, cold chains, processing, agri-startups, FPOs, SHGs | 3% interest subvention on loans up to ₹2 crore for seven years, with CGTMSE cover | Bank rate must be within the scheme's ceiling |
| 8 | RoDTEP / RoSCTL | Exporters (RoSCTL for apparel and made-ups) | Duty remission as transferable e-scrips, a small percentage of FOB value | Scrips pay customs duty or are sold to importers |
| 9 | PLI | Large manufacturers in the 14 notified sectors | Sector-specific incentive on incremental sales for four to six years | Thresholds on investment and sales; applications via EOI rounds |
| 10 | State package — e.g. Rajasthan RIPS 2024 | Units investing in the state | 6% interest subsidy, 75% SGST reimbursement, electricity duty and stamp duty exemption; capital subsidy for MSMEs | Every state has an equivalent — HEEP (Haryana), MP Invest, Tamil Nadu MSME policy |
Figures are those explained in the channel's videos, updated where the government has since revised a limit (CGTMSE ceiling, MSME classification). Each scheme has its own eligibility page on this site — follow the links in the hub cards.
Which schemes go together
- •Food processing unit: CEFPPC or PMFME grant + CGTMSE-backed term loan + AIF 3% interest + state SGST and interest reliefs.
- •SC/ST manufacturer: SCLCSS 15% on the machine loan + CGTMSE guarantee + state capital subsidy; equity from the SC/ST venture fund for growth.
- •First-time entrepreneur: PMEGP margin money + Mudra or CGTMSE loan + state interest subsidy.
- •Exporter: RoDTEP / RoSCTL scrips + EPCG for machines + MDA / MAI for fairs + state SGST reimbursement.
- •Rule: the same rupee of machinery is subsidised once — the DPR is structured so grants and capital subsidies sit on different cost heads.
Government schemes: questions we are asked
CEFPPC under PM Kisan SAMPADA — 35–50% of eligible cost up to ₹5 crore — for food processing; for other manufacturing, the state capital subsidy plus SCLCSS or PMEGP.
Yes — CGTMSE guarantees collateral-free loans up to ₹10 crore; Stand-Up India and Mudra cover smaller tickets.
Yes, if they fund different cost heads or different kinds of benefit (grant + interest subsidy + GST reimbursement). The same machine cannot be subsidised twice.
CGTMSE, SCLCSS, AIF, RoDTEP and state packages are continuous; CEFPPC, PMEGP and PLI open in windows — join our updates to be told when.
Yes — plus DPIIT recognition, Startup India Seed Fund, CGSS and 80-IAC on the startup pages.
Scheme selection, DPR, bank sanction, applications and claims — for central and state schemes across India.