What government schemes support rural small businesses and how to apply?

India offers a range of schemes to help rural entrepreneurs grow through credit, subsidies, and skill development. Many of these can be applied for online via portals like Jan Samarth and Startup India, or directly through banks.

Key Government Schemes

1. Pradhan Mantri Mudra Yojana (PMMY)

Provides collateral-free loans to non-farm micro and small businesses, including allied agriculture.

Loan Categories:

• Shishu: Up to ₹50,000 for new businesses
• Kishore: ₹50,001 to ₹5 lakh for growing businesses
• Tarun: ₹5 lakh to ₹20 lakh for expansion

How to apply:

• Visit Jan Samarth or MUDRA website
• Register as an entrepreneur
• Fill in your details and upload required documents (ID proof, address proof, business registration)

2. Startup Village Entrepreneurship Programme (SVEP)

Supports rural youth to set up sustainable micro-businesses through credit, training, and mentorship.

Features:

• Interest-free loans between ₹1 lakh and ₹10 lakh
• Guidance and business support

How to apply: Apply via your State Rural Livelihood Mission (SRLM) or National Rural Livelihoods Mission (NRLM) office.

3. NABARD Schemes

The National Bank for Agriculture and Rural Development (NABARD) funds agricultural and rural enterprises.

Popular Schemes:

• Agriculture Infrastructure Fund (AIF): Credit for post-harvest and farm infrastructure
• REDP: Training and incubation for rural startups and FPOs
• MEDP: Skill and business development for Self-Help Groups (SHGs)
• RBICs: Startup support in agribusiness

How to apply: Submit applications through NABARD’s partner banks (RRBs, cooperative banks, commercial banks) or contact a NABARD local office.

4. Prime Minister’s Employment Generation Programme (PMEGP)

A credit-linked subsidy scheme to set up new micro-enterprises in non-farm sectors.

Benefits:

• Manufacturing: Subsidy of 15%–35% for projects up to ₹50 lakh
• Services: Subsidy of 15%–35% for projects up to ₹20 lakh
• Lower contribution for SC/ST, women, and minority applicants

How to apply: Apply online via the PMEGP e-Portal.

5. Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM FME)

Helps micro food-processing units upgrade and formalize their operations.

Grant:

• 35% subsidy on project costs (up to ₹10 lakh)

How to apply: Visit the PM FME portal to apply online.

6. Stand-Up India Scheme

Supports women and SC/ST entrepreneurs in starting new businesses.

Features:

• Loans between ₹10 lakh and ₹1 crore for manufacturing, trading, or services

How to apply:
Apply online through the SIDBI portal or at participating banks.

How to Apply for Schemes (General Steps)

1. Register your business – e.g., Udyam Registration for MSMEs
2. Check eligibility on portals – Use Jan Samarth or Startup India
3. Apply online or through banks – Many schemes allow direct application at public, private, or rural banks
4. Prepare documents:
   • Aadhaar, PAN (ID & address proof)
   • Business registration certificate
   • Business plan or project report
   • Bank account details