Government Schemes for Udyam Registered MSMEs

1. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme

The CGTMSE Scheme gives credit guarantee support to eligible Micro and Small Enterprises (MSEs) through banks and other lending institutions. Under the current scheme, eligible loans can be covered up to ₹10 crore, subject to the applicable scheme conditions and lending institution requirements.

The guarantee support can help eligible MSEs get loans without collateral security or a third party guarantee, subjected to the applicable CGTMSE guidelines and lender conditions.

In summary, the key benefits include:

• Credit guarantee Support for eligible new and existing MSEs to access loans through participating lending institutions.
• Credit guarantee support for eligible loans up to ₹10 crore.
• Collateral free and third party guarantee free loans, subject to applicable conditions.
• Concession in guarantee fee may be available to eligible borrowers in specified categories, as per current CGTMSE guidelines.

Important Note: Udyam Registration does not guarantee loan approval or CGTMSE coverage. The lender checks the borrower's eligibility, and the loan must meet the applicable CGTMSE conditions.

Visit the official CGTMSE website

2. Prime Minister's Employment Generation Programme (PMEGP)

The Prime Minister's Employment Generation Programme (PMEGP) is a credit linked subsidy scheme that supports eligible applicants in setting up new micro enterprises in the non-farm sector, subject to the applicable scheme conditions.

Under current PMEGP guidelines, eligible project cost can go up to ₹50 lakh for manufacturing units and ₹20 lakh for service or business units. The margin money subsidy generally ranges from 15% to 35% of the project cost, depending on the applicant category (general or special) and the location (urban or rural).

New units must be registered on the official Udyam portal before physical verification of the unit and adjustment of the margin money in the beneficiary's loan account.

In summary, the key benefits include:

• Financial support for eligible new micro enterprises.
• Margin money subsidy of 15% to 35% under the PMEGP Scheme, based on category and location.
• Support for creating self employment opportunities.
• Support for eligible manufacturing and business or service projects.
• Second financial assistance for eligible PMEGP or MUDRA units for upgrading their businesses.

Important Note: PMEGP is a separate government scheme. Udyam Registration alone does not provide PMEGP subsidy. The applicant, project and loan arrangement must meet the applicable PMEGP conditions.

Visit the official PMEGP portal

3. Pradhan Mantri Mudra Yojana (PMMY)

The Pradhan Mantri Mudra Yojana (PMMY), also called the Mudra Loan Scheme, helps eligible non-corporate, non-farm micro enterprises get collateral-free loans through banks, NBFCs and other eligible lending institutions.

Loans under PMMY are given in four categories based on the business stage and funding need. Eligible Udyam registered micro enterprises that fit the eligibility criteria can apply through the concerned lending institution.

• Shishu: Loans up to ₹50,000, for early-stage businesses.
• Kishore: Loans above ₹50,000 and up to ₹5 lakh, for growing businesses.
• Tarun: Loans above ₹5 lakh and up to ₹10 lakh, for established small businesses.
• Tarun Plus: Loans above ₹10 lakh and up to ₹20 lakh, for eligible borrowers who have successfully clear a previous Tarun loan if applicable.

In summary, the key benefits include:

• Collateral free loans for eligible micro enterprises, as per PMMY norms.
• Loan amounts available from up to ₹50,000 to ₹20 lakh, depending on the applicable Mudra loan category.
• Funding support for business activities in manufacturing, trading and services.
• Support for working capital and term loan requirements.
• Eligible activities related to agriculture, such as poultry, dairy and beekeeping, can also be covered under PMMY.

Important Note: Mudra loan approval, amount and interest rate depend on the lending institution's assessment. Udyam Registration alone does not guarantee a Mudra loan.

Visit the official Mudra Yojana website

4. ZED Certification and Quality Improvement Support

Udyam registered MSMEs can participate in the MSME Sustainable (ZED) Certification programme.

ZED stands for Zero Defect Zero Effect. The programme focuses on improving product quality and productivity while encouraging environmentally responsible manufacturing practices.

In summary, the key benefits include:

• Support for improving product and process quality.
• Encouragement to reduce defects and improve productivity.
• Focus on environmentally responsible business practices.
• Financial support and incentives for eligible testing, certification, handholding and technology upgradation activities, subject to applicable guidelines.
• Support for improving competitiveness and enabling exports.

Important Note: ZED participation and incentives are subject to the applicable scheme requirements and online application process.

Visit the official ZED portal

5. Public Procurement Policy for MSEs

Under the Public Procurement Policy for MSEs, Central Government Ministries, Departments and Central Public Sector Enterprises (CPSEs) are required to procure a minimum share of their annual requirement from eligible Micro and Small Enterprises.

This policy helps eligible MSEs get better access to government buyers and tenders, including certain reserved and facilitated categories.

In summary, the key benefits include:

• Minimum 25% of annual procurement by eligible Central Ministries, Departments and CPSEs targeted from MSEs.
• Within this 25% target, 4% earmarked for MSEs owned by SC/ST entrepreneurs.
• Within this 25% target, 3% earmarked for MSEs owned by women entrepreneurs.
• Free tender sets and exemption from earnest money deposit for registered MSEs, as per applicable rules.
• Facility for eligible MSEs quoting within the Lowest Quoted Price (L1) + 15% price band to supply a portion of the requirement by bringing their price down to L1, subject to applicable conditions.

Important Note: These are procurement targets for buying departments, not a guarantee of order to every MSE. The bidder must still meet the technical and tender-specific conditions.

Visit the official MSME Sambandh portal

6. Procurement and Marketing Support (PMS)

Eligible Micro and Small Enterprises (MSEs) with a valid Udyam Registration can participate in the Procurement and Marketing Support (PMS) Scheme of the Ministry of MSME.

The scheme supports market access and marketing activities that help eligible MSEs promote their products and services and explore new markets. It includes activities such as trade fairs, exhibitions, packaging awareness, GeM awareness and other market access initiatives.

In summary, the key benefits include:

• Participation in eligible trade fairs and exhibitions.
• Support for market access activities.
• Opportunities to promote products and services.
• Awareness of modern packaging methods and technology.
• Awareness about GeM and government procurement.
• Opportunities to explore national and international markets.

Important Note: Financial assistance and reimbursement under the PMS Scheme depend on the activity, eligibility conditions and applicable scheme guidelines.

Visit the official MSME scheme page

7. MSME Innovative Scheme (Incubation, Design and IPR)

The MSME Innovative Scheme brings together Incubation, Design and Intellectual Property Rights (IPR) support under the Ministry of MSME. The three components operate as separate verticals with connections between them.

The scheme supports eligible MSMEs and innovators in developing innovative ideas, improving product design and protecting intellectual property. Under the Incubation component, financial assistance is provided through eligible Host Institutes for nurturing approved ideas.

In summary, the key benefits include:

• Financial assistance of up to ₹15 lakh per idea under the Incubation component, subject to applicable conditions.
• Incubation support through eligible Host Institutes.
• Financial assistance for eligible design projects, including support up to ₹2.5 lakh for student design projects.
• Support for protecting Intellectual Property Rights through eligible patent, trademark, GI and design registration assistance.
• Support for developing innovative ideas into viable products, services or business opportunities.

Important Note: Benefits and financial assistance depend on the applicable component, eligibility conditions, supporting requirements and scheme guidelines.

Visit the official MSME Innovative portal

8. Patent, Trademark, Design and GI Support (IPR)

Eligible Udyam registered MSMEs can access intellectual property support under the MSME Innovative IPR component.

This support helps eligible applicants get reimbursement for eligible patent, trademark, design and Geographical Indication (GI) registration expenses, subject to the applicable scheme conditions and approval.

In summary, the key benefits include:

• Reimbursement support for domestic patent registration.
• Reimbursement support for foreign patent registration.
• Reimbursement support for trademark registration.
• Reimbursement support for design registration.
• Reimbursement support for Geographical Indication (GI) registration.
• Access to IP related guidance through Intellectual Property Facilitation Centres (IPFCs).

Under the current IPR component, reimbursement of actual eligible cost is available up to ₹5 lakh for a foreign patent, ₹1 lakh for a domestic patent, ₹2 lakh for GI registration, ₹15,000 for design registration and ₹10,000 for trademark registration, subject to applicable scheme conditions.

Important Note: The financial assistance is subject to eligibility requirements, supporting documents, approval and the applicable MSME Innovative IPR guidelines. The claim must be filed through the official portal or an approved IP Facilitation Centre.

Visit the official IPR reimbursement portal

9. Lean Manufacturing and Competitiveness Support

Eligible Udyam registered MSMEs can participate in the MSME Competitive (Lean) Scheme.

The programme helps MSMEs improve productivity, efficiency and competitiveness by adopting Lean tools and techniques and reducing avoidable waste in business processes.

In summary, the key benefits include:

• Support for adopting Lean tools and techniques.
• Help in improving production efficiency.
• Reduction of avoidable waste and process losses.
• Improvement in productivity and competitiveness.
• Financial assistance for eligible Lean implementation activities.

Important Note: The Lean scheme is applicable to eligible Udyam registered MSMEs. Assistance and incentives depend on the applicable scheme requirements.

Visit the official Lean MSME portal

10. Special Support for SC/ST Entrepreneurs (National SC-ST Hub)

Eligible Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs can get additional support under the National SC-ST Hub (NSSH) scheme.

The scheme is designed to help SC/ST entrepreneurs participate more effectively in government procurement and strengthen their business capabilities.

In summary, the key benefits include:

• Support for participation in government procurement.
• Marketing and mentoring support.
• Participation in eligible exhibitions and vendor development programmes.
• Subsidy support for eligible plant and machinery or equipment under applicable components.
• Reimbursement of certain eligible fees and services under applicable components.
• Skill development and training support.

Important Note: These benefits are specifically linked to eligibility under the National SC-ST Hub and its applicable components. Udyam Registration alone does not provide these benefits.

Visit the official National SC-ST Hub website

11. Support for International Trade and Exhibitions

Eligible MSMEs can get support under the International Cooperation Scheme for selected international exhibitions, trade fairs, buyer-seller meets and other approved international activities.

The scheme aims to help MSMEs stay updated on the latest technologies, changes in technology and demand, and emerging international markets.

In summary, the key benefits include:

• Participation in selected international exhibitions and trade fairs.
• Opportunities to explore new overseas markets.
• Exposure to international buyers and business opportunities.
• Opportunities to understand latest international technologies and market developments.
• Financial assistance under eligible International Cooperation activities.

Important Note: International Cooperation support is available only for eligible activities, applicants and events approved under the applicable scheme guidelines.

Visit the official MSME scheme page

12. Cluster Development Support (MSE-CDP)

Micro and Small Enterprises can benefit from the Micro & Small Enterprises Cluster Development Programme (MSE-CDP).

The programme supports eligible cluster projects by helping develop common facilities, infrastructure and other shared resources that can improve the competitiveness of MSME clusters.

In summary, the key benefits include:

• Development of common facilities for eligible MSME clusters.
• Support for infrastructure development.
• Technology and productivity improvement.
• Better access to common business facilities.
• Support for improving the competitiveness of MSME clusters.

Important Note: Cluster Development benefits are generally provided through eligible cluster projects and are not an automatic individual benefit for every Udyam registered enterprise.

Government Scheme Disclaimer

Being a Udyam registered MSME does not automatically make a business eligible for every government scheme listed on this page. Each scheme has its own eligibility criteria, application process and terms.

Eligibility may depend on factors such as the type of business, enterprise category, location, sector, investment, turnover, project requirements or other conditions specified under the respective scheme.

Important Note:

• Udyam Registration alone does not guarantee eligibility for a government scheme.
• Udyam Registration does not guarantee approval of any loan, subsidy, grant or financial assistance.
• Some schemes require a separate application, supporting documents or approval from the concerned authority or financial institution.
• The amount, benefits and eligibility conditions vary from one scheme to another.
• Some schemes are available only to specific categories of businesses, entrepreneurs, sectors or activities.
• Scheme benefits are provided according to the applicable government guidelines and conditions in force at the time of application.