Government loans for startups in India
Loan schemes backed by the government, usually through a bank. You repay these, so they suit a business that already has a way to earn.
Checked on official pages, last on 4 November 2026. Founders Wing does not run these schemes or help with applications.
Loan · All of India
Open all yearPradhan Mantri MUDRA Yojana
Ministry of Finance, through MUDRA and lending institutions
Shishu up to ₹50,000, Kishor up to ₹5 lakh, Tarun up to ₹10 lakh, Tarun Plus up to ₹20 lakh
Loan · All of India
Open all yearVCF-SC: Venture Capital Fund for Scheduled Castes
Ministry of Social Justice and Empowerment, managed by IFCI Venture Capital
₹10 lakh to ₹15 crore, with total assistance not above two times the company's net worth
Loan · All of India
Open all yearTDB: Technology Development Board Core Funding
Technology Development Board, Department of Science and Technology
Soft loan at 5% simple interest for 50% of the project cost not yet incurred. Equity up to 25% of approved cost.
Loan · Bihar
Opens in roundsStartup Bihar seed loan: Seed Support, Bihar Startup Policy 2022
Department of Industries, Government of Bihar
Up to ₹10 lakh as an interest-free loan
Loan · All of India
Check official pageRDI Fund: Research, Development and Innovation Fund
Anusandhan National Research Foundation, Department of Science and Technology
Up to 50% of total project cost as loans, equity or hybrid instruments. No grants.
A grant can help. Paying customers keep you going.
Founders Wing is India’s community for people building with AI: weekly live sessions, a private group, and people who help you reach paying customers.
Questions people ask
Is the Startup India Seed Fund Scheme still open?
No, not for new startups. The official portal gave 31 May 2026 as the last date for startups to apply. Money already approved is still being paid out, and we found no replacement scheme when we last checked.
Do I need DPIIT recognition to get a grant?
Many central and state schemes ask for it, but not all. Each page here lists that scheme's conditions, so check before you apply for recognition just for one scheme.
Can a SaaS or AI startup get a grant?
Yes, but fewer schemes suit it than the headlines suggest. Some are for deep tech or hardware, and NIDHI PRAYAS, for example, leaves out pure software and app projects. Start with our list for software startups.
What is the difference between a grant, a loan and a credit guarantee?
You are not expected to repay a grant if you meet its conditions. You repay a loan with interest. A credit guarantee is not money for you at all: it protects the bank, which may make the bank more willing to lend to you.
Should I pay an agent to get a government scheme?
Be careful with anyone who promises approval for a fee. Nobody outside the selection process can promise it. MUDRA, for example, says on its own site that it uses no agents.
How current is this list?
Each page shows the date we read the official source. Schemes change and close without much notice, so confirm the amount and dates on the official page before you apply.