Schemes MSMEs 2022-23

Schemes for MSMEs


  1. Prime Minister’s Employment Generation Programme (PMEGP)                                3
  2. 2nd Loan for up-gradation of the existing PMEGP/MUDRA units                                 5
  3. Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)                           7    
  4. Micro & Small Enterprises Cluster Development Programme (MSE-CDP) Scheme     9
  5. Scheme of Fund for Regeneration of Traditional Industries  (SFURTI)        
  6. Entrepreneurship Skill Development Programme (ESDP) Scheme                               13
  7. Assistance to Training Institutions (ATI) Scheme                                                         15
  8. Coir Vikas Yojana - Umbrella Scheme

       Skill Upgradation and Mahila Coir Yojana                                                        17

9        Procurement and Marketing Support (PMS) scheme                                                 19

10    International Cooperation (IC) Scheme                                                                     20

11    National SC-ST Hub Scheme                                                                                    23

12    A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)   25

13    Khadi Gram Udyog Vikas Yojana - Umbrella Scheme

  • Khadi Vikas Yojana

(A)   Modified Market Development Assistance (MMDA) Scheme   27

(B)   (B)Interest Subsidy Eligibility Certification.                                                                           29

(C)   Work-Shed Scheme for Khadi Artisans                                                                 30

  • Gramodyog Vikas Yojana                                                                                                          31

(A)   Pottery Activity         31

(B)   Beekeeping Activity 33

(C)   Agarbatti Making Project      35

14     Promotion of MSME in NER and SIKKIM   37


New Schemes

15    Tool Rooms and Technical Institutions - A Component of Infrastructure Development & Capacity Building scheme 40

16    MSME Champions Scheme 42

(A) MSME Sustainable (ZED) Certification 43

(B)  MSME-Competitive (Lean)    46

(C) MSME- Innovative (Incubation, IPR, Design and Digital MSME) 48

(D) Digital MSME 51

17    Credit Guarantee Scheme for Subordinate Debt (CGSSD) for Stressed MSMEs    53

18    Self Reliant India (SRI) Fund 55

19    Important Contact Numbers 57



The scheme aims to provide financial assistance to set up self-employment ventures and generate sustainable employment opportunities in rural as well as urban areas.

To generate sustainable and continuous employment opportunities to rural and unemployed youth as well as prospective traditional artisans and thereby halt occupational migration.

Key Benefits :

Bank-financed subsidy program for setting up new micro-enterprise in non-farm sector.

Margin Money subsidy on Bank Loan ranges from 15% to 35% for projects up to Rs. 50 Lakh in manufacturing and Rs. 20 Lakh in the service sector.

For beneficiaries belonging to special categories such as SC/ST/ Women/ Minorities/ Ex Servicemen/ Transgender/ aspirational districts/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas.

Scheme applicable for:

Any individual, above 18 years of age can apply.



Detailed Information:

  • The own contribution of the beneficiary is 10% of the project cost in case of general category and 5% of the project cost in case of special category (SC/ST/OBC/PH/Women/Ex Servicemen/ NER) Beneficiaries.
  • If the application for loan is approved, Banks sanction and release the balance amount of 90 to 95 percent of the total project cost suitably for setting up of the units by the beneficiaries.
  • In order to have sustainability of the projects/units set up under the scheme, support services are also provided in the form of Backward & Forward Linkages by organizing events like awareness camps, workshops, EDP training to the beneficiaries, exhibitions, geo-tagging, etc.
  • Government of India has introduced online process flow of application and disbursement of Margin Money directly to financing branches.
  • One-page online application form is mandatory for individuals on the e-portal. The application form/PMEGP MIS portal is mobile friendly. SMS/e-mail alerts sent to the applicant automatically by the system or by the concerned officials at the process of each stage.
  • Model Projects of different KVI activities have been put up on PMEGP e-portal for the benefit of potential beneficiaries.
  • Model Village Industries projects prepared by NSIC have also been linked to the website.
  • To increase the registration of MSMEs in the country, the Government has undertaken measures that the PMEGP units can adopt the Udyog Aadhar Memorandum (UAM)/UDYAM REGISTERATION to register online


How to apply:

Apply on:


2nd Loan for up-gradation of the existing

PMEGP/MUDRA units’ gradation of the





  • With an objective to assist existing units for expansion and upgradation, the scheme provides financial assistance to successful/well performing units.
  • The scheme also caters to the need of the entrepreneurs for bringing new technology/ automation so as to modernize the existing unit.

Key Benefits:

  • Maximum subsidy would be 15% of the project cost (20% for NER and Hill States). The balance amount of the total project cost is provided by Banks as term loan.

Scheme applicable for:

  • Existing well performing PMEGP/MUDRA units

Detailed Information:

  • Further financial assistance scheme for expansion/ upgrade the existing PMEGP/MUDRA units for manufacturing and Service/ Trading units from the year 2018-19
  • The maximum cost of the project under manufacturing sector for up-gradation is Rs.1.00 crore and Rs. 25.00 lakhs under Service/ Trading sector.
  • Maximum subsidy would be 15% of the project cost (20%) for NER and Hill States) i.e., Rs. 15.00 lakhs in Non-NER and Rs.20.00 Lakh for NER and Hill States. The balance amount of the total project cost shall be provided by Banks as term loan.
  • All existing units financed under PMEGP/MUDRA Scheme whose margin money claim has been adjusted and the first loan availed has been repaid in stipulated time are eligible to avail the benefits
  • The units should have been making profit for the last three years.
  • Beneficiary can apply to the same financing bank, which sanctioned the loan for their unit, or to any other financing bank, which is willing to extend credit facility for second loan.
  • The beneficiary can choose any implementing agency and that may be different from the agency chosen for 1st loan.
  • Registration of Udyog Aadhar Memorandum (UAM)/UDYAM REGISTRATION is mandatory.
  • The 2nd loan should lead to additional employment generation.
  • To submit the application under 2nd loan for up-gradation, the beneficiaries have to apply by filling application form on PMEGP e-Portal.


How to apply:

Apply on: