🏦 Government Yojanas for Business & Livelihood–Empower Your Enterprise: Bank Yojanas Driving India’s Business Revolution

“When dreams meet the right financial support, small ideas turn into successful enterprises — and that’s exactly what India’s Bank Yojanas for Business & Livelihood aim to achieve.”

Bank Yojanas for Business and Livelihood are government-backed financial schemes that aim to empower small entrepreneurs, self-employed individuals, and micro-businesses by offering collateral-free loans, subsidies, and credit guarantees. These schemes are implemented through commercial banks, cooperative banks, NBFCs, and microfinance institutions.

Key Bank Yojanas:

1. Pradhan Mantri MUDRA Yojana (PMMY)
   • Offers loans up to ₹10 lakh (Shishu, Kishor, Tarun categories)
   • For small businesses, traders, artisans, and service providers
   • No collateral required
2. Stand-Up India Scheme
   • Loans from ₹10 lakh to ₹1 crore
   • For SC/ST and women entrepreneurs
   • Supports greenfield enterprises in manufacturing, services, and trading
3. PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)
   • Working capital loans of ₹10,000–₹50,000
   • For street vendors with interest subsidy & digital cashback
   • No collateral, easy digital application
4. Prime Minister’s Employment Generation Programme (PMEGP)
   • Loans up to ₹25 lakh (manufacturing) / ₹10 lakh (services)
   • Up to 35% subsidy on project cost
   • For unemployed youth and new entrepreneurs
5. Credit Guarantee Fund Trust for MSEs (CGTMSE)
   • Offers credit guarantee cover up to ₹5 crore
   • Supports collateral-free loans to MSEs
   • Coverage up to 95% for targeted groups (women, SC/ST, NE)
6. Mahila Udyam Nidhi (MUN) – SIDBI
   • Soft loan up to ₹2.5 lakh for women entrepreneurs
   • Long repayment period (up to 10 years)
   • For starting or upgrading micro-enterprises
7. Vajpayee Bankable Yojana (Gujarat)
   • State scheme providing subsidized loans up to ₹8 lakh
   • For artisans, youth, women, and differently-abled in Gujarat
   • Subsidy ranges from 20–40% based on category
8. Aatmanirbhar Gujarat Sahay Yojana (AGSY)
   • Collateral-free loan of ₹1 lakh at 2% interest
   • For small traders and workers affected by COVID-19
   • Offered through cooperative banks

Shri Vajpayee Bankable Yojana in detail

🎯 What is it for?

A Gujarat government scheme (administered via the Commissionerate of Cottage & Rural Industries, SLBC Gujarat) to promote self-employment among unemployed youth, artisans, craftsmen, differently-abled, and visually impaired individuals across rural and urban areas

👤 Eligibility Criteria

• Age: 18–65 years
• Education/Experience:
  • Minimum Std. 4 pass OR
  • At least 3 months of training (private) or 1 month (government-recognized institute) OR
  • Minimum 1 year of experience in the activity OR
  • Heirloom artisan/craftsman
• Income: No specified limit—open to all economic groups
• Business nature: Must be setting up or expanding a unit in the manufacturing, service, or trade sectors

💰 Loan & Subsidy Details

• Maximum Loan Amount: ₹8 lakh (industries/service/business sectors)
• Subsidy Rates (as % of loan):
  • General category: Rural 25%, Urban 20%
  • SC/ST, women, ex-servicemen, persons with ≥40% disability: Rural 40%, Urban 30%
• Subsidy Caps by Sector/Category:
  • Industry: upto ₹1,25,000
  • Service: upto ₹1,00,000
  • Business:
    • General: Rural ₹75,000 / Urban ₹60,000
    • Reserved (SC/ST etc.): ₹80,000 (rural/urban)
    • Persons with disability: up to ₹1,25,000

📝 Application Process

1. Register on Gujarat’s Bankable Loan Portal (e.g. via blp.gujarat.gov.in)
2. Submit details: Aadhar, contact, project description, training/experience, finance requirement
3. Upload documents: Aadhaar, training certificate, educational and caste certificates, business plan, identity proof, bank passbook, photo
4. Bank review & sanction: Bank processes loan, and after approval, subsidy is released per category rules

🔍 Why It’s Beneficial

• No income restrictions, collateral-free loans, and a substantial subsidy make it highly-accessible.
• Strong focus on cottage industry & artisanal skills, helping traditional craftsmanship and local enterprise.
• Inclusive of women, SC/ST, ex-servicemen, and differently-abled individuals—earning higher subsidy.
• Covers manufacturing, service, and trade sectors, offering flexibility across entrepreneurship fields.

✅ Steps to Apply

1. Assess your eligibility: Check age, education/training, sector alignment.
2. Prepare documents: Certificates, business/project plan.
3. Create account: Use the BLP portal and complete the registration.
4. Submit application: Fill project details, upload docs, apply for loan subsidy.
5. Follow-up with bank: Track sanction and disbursement, ensure subsidy releases.

📌 Quick Recap

Feature	Details
Target Beneficiary	Unemployed youth, craftsmen, artisans, disabled/visually impaired
Loan Limit	Up to ₹8 lakh
Subsidy Rate (General)	20–25% depending on urban/rural
Subsidy Rate (Reserved)	30–40%, plus special cap of ₹1.25 lakh for disabled
Sectors Covered	Manufacturing, service, trade
Collateral	Not required
Process Channel	Bankable Loan Portal & approved banks

Aatmanirbhar Gujarat Sahay Yojana (AGSY) in detail

🎯 Purpose & Scope

• A scheme launched by the Government of Gujarat (Chief Minister Vijay Rupani) in May 2020 to support small traders and self-employed individuals (e.g., electricians, plumbers, carpenters, vendors) whose livelihoods were impacted by the COVID‑19 lockdown
• Aims to provide collateral‑free working capital loans to revive small businesses.

💵 Loan Details & Interest Structure

• Maximum loan: Up to ₹1 lakh
• Tenure: 3 years
• Interest rate paid by borrower: 2% per annum
• Subsidy by state: Additional 6% interest is borne by Gujarat govt, making effective out-of-pocket rate just 2%
• Moratorium: No need to repay principal or interest for first 6 months, followed by EMI over 30 months

🏦 Participation & Disbursement

• Loans provided through:
  • Urban cooperative banks (~260)
  • District cooperative banks (~18)
  • Credit cooperative societies (~6,500) within Gujarat
• Loan corpus: up to ₹5,000 crore committed for this scheme
• Lending agencies were encouraged to complete disbursements by November 15, 2020, following application period from May 21 to August 31, 2020

👥 Who Is Eligible?

• Self-employed workers: e.g., electricians, plumbers, masons, tailors, cobblers, domestic helps, tea stall owners, etc.
• Informal micro-traders who suffered business interruptions during lockdown, including both franchise and independent small shopkeepers
• Not required to be an NPA and must have no overdue loans at the time of application

📝 Application Requirements & Process

• Guarantors: Two guarantors required (income proof needed)
• Documents needed:
  • Filled application with business purpose
  • Affidavit, loan acceptance & promissory notes
  • Identity (Aadhaar, PAN/Form‑60, family Aadhaar)
  • Proof of self-employment as of January 1, 2020 (association letter or employer letter)
  • Ration card, canceled cheque or bank passbook
• Security: No property collateral, but EMI cheques are taken as security
• NPA & Defaults: Default incurs 3% penalty interest + legal action against borrower/guarantor; loan converted to NPA if repayment not made

📊 Additional Provisions

• Cooperative banks can lend up to 10% of their assets, potentially increasing to 20% pending RBI approval.
• Gujarat govt reimburses 6% interest quarterly and provides a one-time 2% incentive to lending agencies.

✅ Fast Facts at a Glance

Feature	Details
Loan amount	Up to ₹1 lakh
Tenure	3 years
Moratorium	First 6 months
Effective rate	2% p.a. (state covers 6%)
Disbursement via	Co-op banks & credit societies
Applications window	May 21 – Aug 31, 2020
Repayment	Equal EMIs over 30 months

📌 Why It’s Beneficial

• Low-cost, collateral-free credit — perfect for informal sector workers.
• Inclusive & accessible through local cooperative societies and banks.
• Built-in cushioning with moratorium and state interest subsidy.

📋 Next Steps for You

1. Check eligibility: Ensure no overdue loans and match the target beneficiary list.
2. Collect documents: Especially guarantor details and proof of self-employment pre-Jan 2020.
3. Approach your nearest urban/district cooperative bank or credit society.
4. Watch the video for help filling out the application.
5. Submit your form and follow-up in case of delays or queries.

Chief Minister’s Self Employment Scheme (CMSES) in detail

🎯 What Is CMSES?

CMSES is a state-sponsored self-employment support scheme by the Gujarat Government (through the Commissionerate of Cottage & Rural Industries and urban self‑employment mission). It’s tailored to empower urban and rural poor to establish micro-enterprises or livelihood ventures .

👥 Who Can Apply?

• Target Beneficiaries:
  • Urban poor individuals and families.
  • Rural micro-entrepreneurs.
• Income Cap: Family annual income must not exceed ₹6 lakh in both urban and rural areas .
• Unemployment & Training:
  • Youth trained under constituency-level livelihood schools.
  • Unemployed and informal workers aiming to start micro-enterprises .

💰 Financial Support & Purpose

• Aim: Provide working capital or small project funding to set up micro-level ventures— such as small manufacturing units, service shops, or trades.
• Loan Structure:
  • Administered via bank-linked credit, often with government subsidies.
  • Some variants offer vehicle loans (like auto-rickshaws, tempo-trucks) under the “Vahan Loan Sahay Yojana” component.

📋 Key Features

• Micro-enterprise-oriented: Ideal for small-scale businesses (e.g., by tailors, carpenters, shopkeepers, drivers).
• Mode of Delivery:
  1. Apply via urban/rural livelihood missions or the Commissioner’s office.
  2. Provide income certificate showing ≤ ₹6 lakh annually.
  3. Submit a micro-enterprise/business proposal.
  4. Bank appraises the proposal and processes linked subsidy and loan disbursement.
• Group Eligibility: Both individuals and groups can apply.

🛠️ Documents Typically Required

• Income certificate (≤ ₹6 lakh/yr).
• Aadhaar & identity proof.
• Livelihood training certificate (if applicable).
• Business plan or project outline.
• Bank account and KYC documents.

🚀 Why CMSES Stands Out

• Inclusive: Designed for economically disadvantaged groups with modest income ceilings.
• Access to formal credit: Empowers vulnerable individuals to start or scale micro-businesses.
• Comprehensive support: Often bundled with training & guided through livelihood mission frameworks.

✅ How to Apply

1. Confirm income eligibility ≤ ₹6 lakh/yr.
2. Prepare a concise micro-enterprise plan.
3. Visit your local District Cottage & Rural Industries office or urban livelihood mission center.
4. Submit your documents and proposal.
5. The relevant agency processes your application and forwards it to a partner bank for loan sanction and subsidy release.

Stand-Up India Scheme in detail

🎯 What Is Stand‑Up India?

Launched on 5 April 2016 by the Government of India, this scheme aims to promote entrepreneurship among Scheduled Caste (SC), Scheduled Tribe (ST), and women by facilitating bank loans for greenfield enterprises in manufacturing, services, trading, or allied agricultural activities

👥 Eligibility Criteria

• Age: Any entrepreneur over 18 years
• Beneficiary Types:
  • At least one SC/ST borrower or one woman borrower per bank branch.
  • For joint ventures/groups, 51% ownership and controlling stake by SC/ST or woman entrepreneur(s)
• Project Type: Only greenfield ventures—new enterprises, not expansions
• Credit History: Must not be a defaulter to any financial institution

💰 Loan Details

• Loan Amount: Composite loan (term + working capital) from ₹10 lakhs to ₹1 crore
• Loan Quantum: Typically covers up to 75% of project cost (remaining 25% through borrower contribution or other subsidies); borrower must contribute at least 10%
• Interest Rate: Bank’s base lending rate (MCLR/EBLR) + up to 3% + tenor premium; capped accordingly
• Repayment Term: Up to 7 years, with a maximum moratorium of 18 months

🛡️ Security & Guarantee

• Loans are secured by the primary asset purchased out of the loan.
• Collateral may be waived: banks can leverage the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) — offering coverage up to 80% of loan

🏦 Loan Utilization

• Includes both term loan (for investments like machinery or assets) and working capital.
• Working capital up to ₹10 lakh is provided as an overdraft (with RuPay debit card), while amounts above that come as cash credit lines

🤝 Support & Hand-Holding

The official Stand‑Up India portal connects borrowers to support services like:

• Skill training, financial literacy, mentorship
• Project report preparation, loan documentation
• Access to workspace from District Industries Centres (DICs)
  These services help bridge the gap between entrepreneurs and financial institutions

📈 Impact & Reach

• More than 180,000 entrepreneurs have benefited, with ~80% women
• Over ₹40,700 crore sanctioned in loans since inception
• Recently extended through 2025 as per a Press Information Bureau update

📝 How to Apply

1. Eligibility check: Confirm you are SC/ST or a woman entrepreneur, over 18, and embarking on a greenfield project.
2. Prepare documentation:
   • Identity & address proofs (e.g., Aadhaar, PAN)
   • Project report/proposal
   • Proof of SC/ST status (if applicable)
3. Approach:
   • Any Scheduled Commercial Bank branch
   • Or via the Stand‑Up India portal (standupmitra.in)
4. Support services (optional): You can request mentoring, business planning assistance, and financial literacy.
5. Loan processing: Bank approves both term loan and working capital, applies CGFSIL coverage if collateral waived.
6. Disbursement & Utilization: Funds released, loan account set up, and guarantee registered.

✅ Quick Overview

Feature	Details
Loan Amount	₹10 lakh – ₹1 crore
Interest	Base + up to 3% + tenor premium
Repayment	Up to 7 years; 18-month moratorium
Security	Asset-based; optional credit guarantee
Coverage	Manufacturing, trading, services, agri‑allied
Beneficiaries	SC/ST, women (min. 1 per branch); ≥18 yrs; greenfield

🛠️ Why Stand‑Up India is Powerful

• Drives entrepreneurship among underrepresented groups
• Combines finance + mentorship + support services
• Enables first-time business ventures with minimal upfront capital
• Provides optional credit guarantee to reduce risk for banks

Prime Minister’s Employment Generation Programme (PMEGP) in detail

🎯 What Is PMEGP?

• Launch & Administration: Introduced in 2008 by merging PMRY & REGP, under the Ministry of MSME and implemented via KVIC nationally, and through KVIBs, DICs, and Coir Board at state level.
• Aim: Generate employment by establishing new self-employment ventures in rural and urban areas, with a focus on artisans and unemployed youth .

👥 Who Is Eligible?

1. Individuals & Organizations:
   • Indian citizens aged 18+; no income ceiling.
   • Groups like SHGs, societies, co-operative societies, and charitable trusts are eligible .
2. Project Type:
   • Must be a new enterprise. Existing units under similar schemes (PMRY, REGP, MUDRA) aren’t eligible .
3. Educational Requirement:
   • Projects above ₹10 lakh (manufacturing) or ₹5 lakh (service/business) require at least 8th standard pass.
4. Family Limit:
   • Only one applicant per family can receive assistance .

💰 Financial Support Breakdown

Feature	Manufacturing	Service/Business
Max Project Cost	₹25 lakh	₹10 lakh
Special Projects (Upgrade)	Up to ₹1 crore	Up to ₹25 lakh
Margin Money Subsidy (Gen)	Rural 15%, Urban 10%	Rural 15%, Urban 10%
Margin Subsidy (SC/ST/Others)	Rural 35%, Urban 25%	Rural 35%, Urban 25%
Self-Contribution Required	5–10% of project cost	Same
Bank Loan Contribution	~90–95% via term loan + working capital	Same
Interest Rate	EBLR + ~3.25% (~12–13% pa with SBI example)
Repayment Tenure	3 to 7 years, up to 18 months moratorium.

🚫 Ineligible Activities

Projects related to the following are not allowed:

• Slaughterhouses/meat processing, liquor shops/dhabas selling alcohol
• Tobacco products, pan/beedi/cigarettes
• Certain plastic items, cash crops, nurseries (see full negative list) .

🛠️ Training & Support

• EDP (Entrepreneurship Development Programme):
  • Mandatory for projects >₹5 lakh: 5–10 days offline or 30–60 hours online.
  • Exemptions for those with prior EDP training; free certification via the Udyami portal
• Mentorship & Monitoring:
  • Banks conduct quarterly physical visits, with geo-tagging and support for backward/forward linkages.
• Upgradation Path:
  • Established, profitable PMEGP/MUDRA units can apply for second loans: ₹1 crore subsidy upto 20% (manufacturing) or ₹25 lakh (service), with specific selection criteria.

📝 Application Process

1. Generate a Udyami ID via the PMEGP portal.
2. Check eligibility & fill out application, authenticate with Aadhaar and upload docs.
3. Submit project report and supporting documents (ID, educational, photos, EDP certificate).
4. Bank appraisal & sanctioning of loan + margin money.
5. Disbursement, followed by training, physical verification, and ongoing support.

✅ Benefits at a Glance

• High subsidy of up to 35% on project cost
• Collateral-free loans for up to 95% of project expenditure ≤₹10 lakh
• Access to mentorship, linkages, and monitoring support
• Opportunity to upgrade existing ventures under a second loan option

📝 Steps You Should Take

1. Choose a viable micro-enterprise idea aligned with scheme norms.
2. Complete EDP training online or offline.
3. Register and apply via the Udyami/PMEGP portal (KVIC website).
4. Prepare a strong project report.
5. Approach banks (e.g. KVIC-linked or SBI branches) for sanction and sanctioning.

Pradhan Mantri SVANidhi Scheme in detail

🎯 Purpose & Background

Launched on 1 June 2020 by the Ministry of Housing & Urban Affairs, PM‑SVANidhi offers affordable, collateral-free working capital loans up to ₹10,000 initially, aimed at reviving street-vendor businesses affected by the COVID‑19 lockdown.

👥 Eligibility

• Vendors who were vending in urban/peri‑urban areas on or before 24 March 2020.
• Must hold a Vending Certificate or Letter of Recommendation from ULB/TVC.
• Vendors without certificates but included in ULB surveys can receive provisional vending certificates.

💵 Loan Structure & Tenure

Tranche	Amount	Tenure
1st	Up to ₹10,000	12 months
2nd	Up to ₹20,000	6–18 months
3rd	Up to ₹50,000	Up to 36 months

Note: To be eligible for higher tranches, repayment of earlier loans must be timely or early .

🏦 Key Benefits

1. Interest Subsidy
   • 7% per annum on all timely/early repayments, credited directly.
2. Digital Cashback Incentives
   • CBDT-style micro-cashbacks (~₹1 per digital transaction, up to ₹100/month, ₹1,200/year) for UPI/QR/POS transactions.
3. Collateral-Free Loans
   • No security, margin, or processing fees; optional credit guarantee via CGTMSE covers up to 100% for first two tranches, tapering for the third .
4. Credit & Digital Inclusion
   • All loans include RuPay debit cards and digital payment onboarding support.
5. Extended Support
   • Scheme lending continues till Dec 2024, with guarantee and subsidy claims settled up to March 2028.

🆕 Recent Updates (2025)

• Revised Benefits: Vendors who fully repay all three loans may become eligible for credit cards (₹30,000 limit) and access to higher-value loans.
• Local Initiatives: In cities like Jaipur, specific vending zones have been created to complement PM‑SVANidhi, offering loans and licenses on-site. Gujarat has similarly championed the scheme with digital camps, vendor onboarding, and effective support mechanisms.

📝 How to Apply

1. Visit the PM‑SVANidhi portal or apply via Common Service Centres (CSCs) .
2. Ensure mobile is Aadhaar‑linked.
3. Submit vending certificate or ULB-issued LoR.
4. Bank collects documents, registers for digital payments, and disburses the loan.
5. Repay according to schedule to unlock subsidies and subsequent loan tranches.

✅ Why It’s Valuable

• Empowers street vendors with formal credit.
• Encourages digital finances via interest rebates and cashback.
• Eliminates entry barriers—no collateral or upfront fees.
• Offers a structured path for financial growth and inclusion.

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) in detail

CGTMSE — a crucial scheme for collateral-free credit to Micro & Small Enterprises (MSEs):

🏛️ What is CGTMSE?

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was established in August 2000 by the Ministry of MSME and SIDBI. Its aim is to ease access to formal credit for MSEs by offering guarantee coverage on loans without requiring collateral or third-party guarantees.

✅ Who Is Eligible?

• Borrowers: New and existing MSEs (manufacturing or service sectors), including proprietorships, partnerships, LLPs, private limited companies — excluding agriculture, SHGs, JLGs.
• Pan & Udyam: Required PAN for loans above ₹5 lakh; Udyam registration mandatory.
• Viable businesses: No defaulters or fraud/­willful default accounts supported.

💵 Coverage & Guarantee

• Loan types covered: Term loans and working capital, up to ₹5 crore per MSE.
• Guarantee percentage:
  • Up to ₹5 lakh: 75–85%
  • ₹5 lakh–₹1 crore: ~75%
  • ₹1 crore–₹5 crore: 50%.
• Special benefits: Women-led, NE region, SC/ST, Aspirational District MSEs can get up to 90% guarantee; under Gujarat’s new top-up scheme (GjCGS), total coverage can reach 95%.

🏦 Eligible Lenders (MLIs)

Public/private sector banks, RRBs, NBFCs, MFIs — all approved financial institutions may participate.

⏳ Tenure & Fee Structure

• Guarantee tenure: Typically matches loan tenure; working capital coverage is renewable every 5 years.
• Guarantee Fees:
  • Small loans (<₹10 lakh): ~0.37% + GST
  • Larger loans (₹10–50 lakh): ~0.55%
  • Up to ₹5 crore: up to 1.35%, with discounts for women, SC/ST, etc..

⚙️ How It Works

1. Borrower applies to an MLI for a loan.
2. MLI assesses viability, approves loan, and registers with CGTMSE.
3. Guarantee fee paid to CGTMSE.
4. Loan disbursed collateral-free.
5. If default occurs, bank invokes guarantee after lock-in, CGTMSE covers 75–95% of defaulted amount .

🎯 Gujarat-Specific Boost: GjCGS

Launched Feb 2025, Gujarat added its funds to boost guarantee levels:

• Coverage:
  • 95% for women, SC/ST, PWD, Aspirational, ZED-certified MSEs (loans up to ₹500 lakh)
  • 90% for others.

🎯 Why It Matters

• Removes collateral barrier for credit access.
• Encourages banks to lend to viable SMEs.
• Supports entrepreneurship with reduced risk and cost.
• Gujarat’s enhanced scheme improves access to credit further.

🧭 How to Avail

1. Register on Udyam portal.
2. Prepare loan pitch and documents (PAN/Udyam, project plan, KYC).
3. Approach an MLI (bank or NBFC).
4. MLI submits guarantee application to CGTMSE.
5. Loan disbursed; guarantee cover begins.
6. If default occurs, bank claims per scheme terms.

📊 Quick Overview

Feature	Details
Coverage Limit	Up to ₹5 crore
Guarantee Percentage	75–95% (sector-dependent)
Eligible Entities	MSEs (non-agri), women, SC/ST/NE/PWD receive higher coverage
Tenure	Matches loan; working capital cover renewable every 5 years
Guarantee Fee	0.37%–1.35% + GST, with discounts
Gujarat Enhancement (GjCGS)	Up to 95% coverage for targeted groups

Mahila Udyam Nidhi (MUN) – SIDBI in detail

Mahila Udyam Nidhi (MUN) scheme by SIDBI, designed to empower women entrepreneurs:

👩‍💼 What Is It?

A SIDBI-backed programme offering soft loans to women-led MSMEs—especially micro and small-scale units—to support start-ups, expansion, modernization, or technology upgrades.

💰 Loan Amount & Purpose

• Total Project Cost: Up to ₹10 lakh
• Loan Offered: Up to 25% of project cost, capped at ₹2.5 lakh per project.
• Funds can be used for:
  • Manufacturing or service businesses
  • Upgrading machinery/technology
  • Business diversification or expansion

🛡️ Interest & Charges

• Concessional interest rates—typically around 7–12% per annum, varying by lender.
• A service charge of ~1% per annum may be levied; occasionally waived by banks
• Collateral-free for loans up to ₹2.5 lakh under the scheme

⏳ Repayment Terms

• Tenure: Up to 10 years
• Moratorium: Up to 5 years before principal repayment begins

✅ Eligibility Criteria

• Women entrepreneurs with at least 51% ownership/control in the enterprise
• Investments in the enterprise should be at least ₹5 lakh
• Businesses can be existing or new in manufacturing, production, services, or trading

🧭 Eligible Businesses

Includes a wide range of small-scale ventures, such as:

• Repair/service centers (electronics, vehicles)
• Salons, beauty parlours, laundries, daycare/crèches
• Cyber cafés, typing/STD/ISD booths, photography
• Training institutes, cable networks, roadside eateries, etc.

🔁 Why It Matters

• Bridges equity gap for women-led MSMEs
• Enables modernization and skill diversification
• Promotes financial inclusion and gender equality
• Supports job creation in small sectors

📝 How to Apply

1. Prepare a project plan detailing your venture, costs, and purpose.
2. Visit a participating bank, RRB, or NBFC (e.g., Punjab National Bank under SIDBI guidance).
3. Submit documents: identity proof, business plan, proof of women’s majority stake, proof of investment ≥₹5 lakh.
4. Bank processes your loan; SIDBI provides refinancing support.
5. On approval, funds are disbursed; repayment follows the agreed schedule.

📊 Quick Summary

Feature	Detail
Max Project Cost	₹10 lakh
Loan Offered	₹2.5 lakh (25%)
Interest Rate	~7–12% p.a.
Service Charge	~1% p.a.
Repayment Tenure	Up to 10 years
Moratorium	Up to 5 years
Collateral	Not applicable for ₹2.5 lakh
Business Types	Manufacturing, services, repair, etc.
Ownership Criteria	≥51% women

DAY-NULM in detail

Here is a comprehensive and detailed overview of the Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM):

🏛️ What is DAY-NULM?

The Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) is a flagship scheme of the Ministry of Housing and Urban Affairs (MoHUA), launched in September 2013 (restructured from the SJSRY scheme). It aims to alleviate urban poverty through skill development, entrepreneurship, and self-employment initiatives.

🎯 Objectives of DAY-NULM

• To reduce urban poverty by enabling the urban poor to access self-employment and skilled wage employment opportunities.
• To provide social mobilization and build strong community institutions for poor households.
• To ensure inclusivity by focusing on women, SC/ST, minorities, differently-abled, and other vulnerable groups.
• To improve the livelihood security of the urban poor.

🧩 Major Components of DAY-NULM

1. Social Mobilization and Institution Development (SM&ID)

• Formation of Self Help Groups (SHGs) and their federations.
• Provides Revolving Fund (RF) of ₹10,000 per SHG.
• Offers capacity building, training, and handholding support to SHGs and vulnerable groups.

2. Employment through Skill Training and Placement (EST&P)

• Offers free skill development training in market-relevant sectors.
• Minimum 70% of trained candidates must be placed in wage/self-employment.
• Course duration: minimum 200 hours.
• Focuses on certified skill development with post-placement support.

3. Self-Employment Programme (SEP)

• Facilitates collateral-free bank loans for:
  • Individual enterprises (up to ₹2 lakh).
  • Group enterprises (up to ₹10 lakh).
• Interest subsidy:
  • Difference between 7% and bank lending rate (for 5–7 years).
  • Additional 3% interest subvention for women SHG members with timely repayment.

4. Support to Urban Street Vendors (SUSV)

• Identifies and registers street vendors.
• Issues Identity Cards and licenses.
• Supports in creation of vending zones with basic infrastructure.
• Provides skill training and access to micro-credit (linked to PM SVANidhi).

5. Scheme of Shelter for Urban Homeless (SUH)

• Establishes and manages permanent shelters for urban homeless.
• Ensures facilities like:
  • Water, sanitation, food, medical care, counseling.
• Integrates homeless people into skill and employment programmes.

6. Capacity Building and Training (CB&T)

• Trains stakeholders including:
  • ULB officials, SHG members, beneficiaries, NGOs.
• Focuses on:
  • Financial literacy, digital inclusion, social accountability, leadership.
• Enables better scheme delivery and community engagement.

7. Innovative & Special Projects (ISP)

• Encourages pilot models and need-based innovations.
• Funds innovative livelihood models, technology-based interventions, waste management startups, etc.

📊 Target Groups

• Urban Poor
• Women
• Scheduled Castes (SC) and Scheduled Tribes (ST)
• Minorities
• Persons with disabilities
• Street vendors
• Homeless persons

💰 Financial Provisions

• Funding pattern:
  • 60:40 between Centre and State (for most states)
  • 90:10 for Northeastern & Himalayan states
  • 100% Central assistance for Union Territories

📍 Implementation Mechanism

• Implemented by Urban Local Bodies (ULBs) such as municipal corporations and municipalities.
• States have State Urban Livelihoods Missions (SULMs) for planning, implementation, and monitoring.
• City Mission Management Units (CMMUs) work at local levels.

📈 Impact So Far (As per MoHUA and SLNA Reports)

• Over 5 crore urban poor mobilized into SHGs.
• Around 15 lakh street vendors identified.
• More than 10 lakh trained, and 6–7 lakh placed under EST&P.
• Thousands of shelters for urban homeless have been built or upgraded.

📝 How to Apply / Participate

• For SHGs: Contact your local municipality or District Urban Development Agency (DUDA).
• For skill training: Enroll via City Livelihood Centres (CLCs).
• For loans: Visit your bank and request a loan under NULM-SEP (supported by banks).
• For street vendors: Apply via ULBs for ID card or vending certificate.
• For shelters: Homeless individuals can approach local DUDA/ULB shelters.

🌐 Official Website

• https://nulm.gov.in

✅ Summary Table

Component	Objective	Target
SM&ID	SHG formation & empowerment	Urban poor (especially women)
EST&P	Skill training & placement	Youth (18–45 years)
SEP	Credit-linked self-employment	Individuals & SHGs
SUSV	Support for street vendors	Registered urban street vendors
SUH	Shelter for homeless	Urban homeless
CB&T	Capacity building	Stakeholders
ISP	Innovation in livelihoods	All urban poor groups

detailed description of each major component of the Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM):

1. Social Mobilization and Institution Development (SM&ID)

🎯 Objective:

To organize the urban poor into Self Help Groups (SHGs) and Federations to improve their collective bargaining, access to services, and livelihood support.

Key Features:

• Formation of:
  • Women SHGs (WSHGs) – priority to women.
  • Special SHGs for persons with disabilities, transgender persons, etc.
• Federations:
  • Area Level Federations (ALFs) and City Level Federations (CLFs) provide support, credit linkage, and advocacy.
• Revolving Fund:
  • ₹10,000 per SHG for internal lending.
  • ₹50,000–₹1 lakh to ALFs/CLFs.
• Capacity Building:
  • Financial literacy, book-keeping, leadership, group management.

2. Employment through Skill Training & Placement (EST&P)

🎯 Objective:

To provide market-oriented skill development training to the urban poor for wage employment or self-employment.

Key Features:

• Free training in sectors like retail, hospitality, IT, tailoring, construction, etc.
• Eligibility: Urban poor aged 18–45.
• Minimum training duration: 200 hours.
• Post-training placement:
  • At least 70% placement goal (wage/self-employment).
• Training partners empaneled by State Urban Livelihood Missions (SULMs).
• Trainees receive:
  • Toolkits, uniforms, and training allowance.
  • Certification under National Skills Qualifications Framework (NSQF).

3. Self-Employment Programme (SEP)

🎯 Objective:

To promote micro-enterprises through collateral-free bank loans to individuals and group entrepreneurs.

Sub-components:

A. Individual Enterprises (SEP-I)

• Loan up to ₹2 lakh.
• Interest subsidy on the loan above 7%.

B. Group Enterprises (SEP-G)

• Loan up to ₹10 lakh for groups of at least 3 members.
• Interest subsidy on the loan above 7%.

C. SHG Bank Linkage

• Interest subvention:
  • 7% subsidized rate.
  • Additional 3% subvention for timely repayment (effectively 4% net interest).
• Loan amount varies per bank assessment.

Eligibility:

• Urban poor (preferably SHG members).
• 18+ years.
• Must not be defaulters of any bank.

4. Support to Urban Street Vendors (SUSV)

🎯 Objective:

To empower street vendors by formalizing them and providing infrastructure, credit, and social security.

Key Features:

• Identification: Survey and issuance of ID Cards/Vending Certificates.
• Vending Zones: Creation of designated vending areas with infrastructure.
• Skill Training: Financial literacy, hygiene, customer service.
• Micro-credit:
  • Linked to PM SVANidhi scheme for working capital loans up to ₹50,000.
• Social Benefits:
  • Enrolment in insurance (PMSBY/PMJJBY) and pension (APY) schemes.

5. Shelter for Urban Homeless (SUH)

🎯 Objective:

To provide permanent shelters with basic facilities for urban homeless.

Key Features:

• Construction or renovation of Night Shelters:
  • Each with a capacity of 50–100 persons.
• Basic amenities:
  • Mattresses, toilets, drinking water, lockers, lighting, first-aid.
• Special shelters for:
  • Women, elderly, differently-abled, families.
• NGOs or private agencies may operate shelters under Public–Private Partnership (PPP) models.
• Shelters act as rehabilitation centers offering skill development and health access.

6. Capacity Building & Training (CB&T)

🎯 Objective:

To enhance the capacities of all stakeholders for effective scheme delivery.

Key Activities:

• Training for:
  • Urban Local Body (ULB) officials.
  • SHG members, federations.
  • NGO/CBO representatives.
• Training types:
  • Orientation, exposure visits, e-learning modules.
• Focus areas:
  • Social mobilization, enterprise promotion, financial inclusion, digital payments.
• Content available in local languages.

7. Innovative and Special Projects (ISP)

🎯 Objective:

To encourage locally relevant, innovative livelihood models.

Key Examples:

• Pilot projects in waste management, e-rickshaw fleets, digital platforms.
• Technology-enabled solutions for skilling and micro-enterprise development.
• Inclusion projects for the homeless, transgender persons, or vulnerable youth.
• Projects must:
  • Be replicable.
  • Show measurable outcomes.
  • Align with DAY-NULM goals.

📊 Component-wise Snapshot

Component	Key Service	Target Group	Support Type
SM&ID	SHG formation & training	Urban poor (esp. women)	Revolving fund, leadership
EST&P	Skill development	Youth (18–45 yrs)	Free training & placement
SEP	Micro-enterprise loans	Individuals/Groups	Loans + interest subsidy
SUSV	Street vendor empowerment	Registered vendors	ID cards, credit, training
SUH	Homeless shelter	Urban homeless	Free night shelter with facilities
CB&T	Stakeholder training	SHGs, ULBs, partners	Training & capacity building
ISP	Innovative pilots	Vulnerable groups	Project funding

🌐 Want to Access It?

• Visit: https://nulm.gov.in/
• Contact:
  • District Urban Development Agency (DUDA)
  • City Livelihood Centre (CLC)
  • ULB/Nagar Nigam office

Pradhan Mantri MUDRA Yojana

PMMY stands for Pradhan Mantri MUDRA Yojana — a flagship scheme launched by the Government of India on 8th April 2015 to provide collateral-free micro-credit to non-corporate small business sectors, especially Micro and Small Enterprises (MSEs).

🏦 What is Pradhan Mantri MUDRA Yojana (PMMY)?

PMMY provides financial assistance (loans) through banks, NBFCs, and MFIs to small business owners and entrepreneurs who do not have access to the formal credit system.

🎯 Objective of PMMY

• To “fund the unfunded” by extending affordable credit.
• Promote financial inclusion and entrepreneurship development.
• Encourage startups, small traders, service providers, artisans, vendors, and rural micro enterprises.

🧩 Types of Loans under PMMY

Loans under PMMY are categorized based on the stage of the business:

Loan Category	Amount Range	Ideal for
Shishu	Up to ₹50,000	New businesses or early-stage enterprises
Kishor	₹50,001 – ₹5 lakh	Growing businesses requiring more capital
Tarun	₹5 lakh – ₹10 lakh	Established businesses needing expansion

Some banks also offer Tarun Plus (₹10–20 lakh) for creditworthy existing MUDRA borrowers, though it is not officially a PMMY tier.

📋 Eligibility Criteria

• Must be a non-corporate, non-farm small business in:
  • Manufacturing
  • Services
  • Trading
  • Agri-allied activities
• Applicant must be:
  • An Indian citizen aged 18–65 years
  • Having a viable business plan
  • Not a loan defaulter

🏢 Institutions Offering MUDRA Loans

Loans are disbursed by:

• Public & private sector banks
• Regional Rural Banks (RRBs)
• Small Finance Banks
• Microfinance Institutions (MFIs)
• Non-Banking Financial Companies (NBFCs)

💰 Features of PMMY Loans

Feature	Details
Collateral	No collateral required
Processing Fees	Nil or nominal
Loan Tenure	Up to 5 years
Interest Rate	Varies by bank/lender (~8%–12%)
Repayment	Flexible monthly EMIs
Credit Guarantee	Covered under CGFMU (Credit Guarantee Fund for Micro Units)
Insurance	Optional coverage under PM Suraksha Bima Yojana (PMSBY)

📝 How to Apply

1. Offline (via Bank Branch):

• Visit the nearest bank branch offering MUDRA loans.
• Fill the PMMY application form.
• Submit:
  • Aadhaar, PAN, address proof
  • Business plan
  • Quotation/invoice (for Kishor/Tarun loans)

2. Online:

• Some banks allow online application via their website or portal.
• You can also explore https://www.mudra.org.in for scheme details (but not application).

🔍 Documents Required

Type	Documents
Identity Proof	Aadhaar, PAN, Voter ID
Address Proof	Utility bill, Aadhaar, Passport
Business Proof	Quotation/invoice, registration/license
Others	Bank passbook, photos, project plan

For Details guidelines related to mudra loan visit article Pradhan Mantri MUDRA Yojana (PMMY) -Loans

Summary Comparison

Scheme	Target Group	Loan/Subsidy Details	Collateral	Duration
PMMY	Micro non-farm enterprises	₹50 k–₹10 lakh; Shishu/Kishor/Tarun	No	Up to 5 yrs
Vajpayee Bankable	Artisans, unemployed youth, differently-abled	Up to ₹8 lakh + ₹60 k–₹1.25 lakh subsidy	Project	Project-based
AGSY	Small vendors, domestic workers, artisans	Up to ₹1 lakh @0–2%; collateral-free	No	3 yrs
CMSES	Unemployed BPL youth	₹50 k–₹10 lakh + up to 30% margin subsidy	Project	Varies
PM SVANidhi	Street vendors pre-March 2020	₹10 k → ₹20 k → ₹50 k; 7% subsidy + digital cashback	No	Per loan cycle

How to Decide & Next Steps

1. Choose your match:
   • Micro-business (traders, mechanics) → apply under PMMY Shishu/Kishor
   • Street vendor → PM SVANidhi
   • Small wage/self-employed (carpenters, plumbers, vendors) → AGSY
   • Aspiring entrepreneur or artisan → Vajpayee Bankable or CMSES
2. Get documents ready: Aadhaar, PAN, educational/training & caste/income certificate (if applicable), project/business plan, bank details.
3. Apply:
   • 📌 PMMY & SVANidhi: via bank’s MSME Loan desk or respective online portals.
   • 📌 AGSY, Vajpayee Bankable, CMSES: via District Industries Centers or state’s co-op bank branches.

Disclaimer

The information provided in this article is for general awareness and informational purposes only. While efforts have been made to ensure the accuracy and currency of the data, readers are advised to verify specific scheme details, eligibility criteria, and application procedures directly from official government websites or authorized bank portals. The availability, terms, and conditions of loan schemes may change over time based on policy updates by respective ministries or financial institutions. The author and publisher disclaim any liability for decisions made based on this information.