How to Get ₹10 Lakh Loan from Central Government in 2025 – Full Guide
The Central Government of India offers multiple schemes that enable individuals to receive financial assistance up to ₹10 lakh or more. These government-backed loan programs are aimed at encouraging self-employment, business startups, women entrepreneurs, rural development, and the upliftment of Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC).
Whether you are an unemployed youth, an aspiring entrepreneur, a woman seeking business capital, or someone from a disadvantaged community, you can apply for a ₹10 lakh loan under schemes like PMEGP, MUDRA Yojana, Stand-Up India, and others.
This article explains how you can get a ₹10 lakh loan from the Central Government, with details on eligibility, required documents, online application links, subsidy structure, and tips for approval.
Table of Contents
- PMEGP Scheme – Loan up to ₹25 Lakh
- MUDRA Loan Yojana – Up to ₹10 Lakh Without Collateral
- Stand-Up India Scheme – ₹10 Lakh to ₹1 Crore for SC/ST/Women
- Credit Support for SC/ST Entrepreneurs
- Udyam MSME Registration for Loan Eligibility
- Required Documents for Central Government Loans
- Step-by-Step Application Process
- Best Loan Option for You – A Comparison
- Common Mistakes to Avoid While Applying
- Final Words and Official Links
1. PMEGP Scheme – Prime Minister’s Employment Generation Programme
The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme launched by the Ministry of MSME and implemented through KVIC (Khadi and Village Industries Commission). The aim is to help unemployed individuals start micro-enterprises and create jobs.
Key Features:
- Maximum loan: ₹10 lakh for service sector, ₹25 lakh for manufacturing
- No collateral required up to ₹10 lakh
- Margin money: 5%–10% from applicant
- Government subsidy: 15% to 35%
Eligibility Criteria:
- Age: Minimum 18 years
- Education: Minimum 8th class pass for manufacturing projects above ₹10 lakh
- Must be a new entrepreneur (not already running a business)
- Applicable to individuals, SHGs, co-operative societies, and charitable trusts
PMEGP Subsidy Structure:
| Category | Urban Area Subsidy | Rural Area Subsidy |
|---|---|---|
| General Category | 15% | 25% |
| SC/ST/OBC/Minorities | 25% | 35% |
Apply Online:
Official Website: https://www.kviconline.gov.in/pmegp
2. MUDRA Yojana – Pradhan Mantri Mudra Loan (No Collateral)
The Pradhan Mantri Mudra Yojana (PMMY) provides financial support to micro and small enterprises. This scheme is implemented through public and private sector banks, regional rural banks, cooperative banks, and NBFCs.
Loan Categories:
- Shishu: Up to ₹50,000
- Kishor: ₹50,000 to ₹5 lakh
- Tarun: ₹5 lakh to ₹10 lakh
You can apply for up to ₹10 lakh under the “Tarun” category.
Eligibility Criteria:
- Indian citizen
- Running or planning a business (non-farming)
- Micro or small enterprise
Documents Required:
- Aadhaar card
- PAN card
- Business registration (if available)
- Project report or business plan
- Address and ID proof
- Bank account statement
Apply Online:
Visit the official website: https://www.mudra.org.in
You can also apply directly at any bank branch offering Mudra Loans.
3. Stand-Up India Scheme – Loans for SC/ST and Women Entrepreneurs
Stand-Up India is a government scheme under the Ministry of Finance. It offers loans between ₹10 lakh and ₹1 crore to SC/ST or women entrepreneurs who are starting a greenfield enterprise.
Features:
- Loan range: ₹10 lakh to ₹1 crore
- Loan purpose: Only for new manufacturing, trading, or service-based businesses
- 7-year repayment period with a moratorium of 18 months
- Composite loan: Working capital + Term loan
Eligibility:
- SC/ST or woman above 18 years of age
- Business must be new (greenfield project)
- For non-individual enterprises, at least 51% shareholding should be by SC/ST/woman
- Borrower should not be in default with any bank or financial institution
Apply Online:
Official Portal: https://www.standupmitra.in
Also available via SIDBI or bank branches.
4. Credit Support for SC/ST Entrepreneurs – National SC/ST Hub
The National SC/ST Hub, launched by the Ministry of MSME, aims to develop and support SC/ST entrepreneurs through financial assistance, market linkages, capacity building, and subsidy support.
Key Benefits:
- Handholding support for bank loans and PMEGP applications
- Vendor registration with PSUs
- Skill development and entrepreneurship training
This support can be integrated with PMEGP or Stand-Up India to access ₹10 lakh loan options.
Visit: https://www.scsthub.in
5. Udyam MSME Registration – Mandatory for Business Loans
To access most government loan schemes like PMEGP or Mudra, your business must be registered as an MSME (Micro, Small and Medium Enterprise).
Udyam Registration is:
- Free and online
- Mandatory for government loan eligibility
- Linked to your Aadhaar and PAN
Apply at:
https://udyamregistration.gov.in
6. Required Documents for ₹10 Lakh Loan from Central Government
Before applying, keep these documents ready:
- Aadhaar card
- PAN card
- Recent passport-size photographs
- Proof of residence (ration card, voter ID, electricity bill)
- Educational certificates (for PMEGP)
- Caste certificate (for SC/ST schemes)
- Bank passbook copy
- Business plan or project report
- Udyam Registration certificate (optional but recommended)
7. Step-by-Step Application Process
For PMEGP:
- Visit https://kviconline.gov.in/pmegp
- Click on “Online Application”
- Fill in the required details and upload documents
- Submit your business plan
- Wait for scrutiny and selection by DIC
- If selected, visit the bank for loan processing
For Mudra:
- Prepare your business plan and required documents
- Visit your nearest bank branch
- Fill the Mudra application form
- Submit documents
- Bank verifies and disburses loan if eligible
For Stand-Up India:
- Go to https://www.standupmitra.in
- Choose your category (SC/ST/Women)
- Submit your project details and KYC documents
- Connect with a preferred bank for further processing
8. Best Scheme Comparison – Which Is Right for You?
| Scheme | Amount Range | Collateral | Target Group | Loan Use |
|---|---|---|---|---|
| PMEGP | ₹10–25 lakh | No | All categories | New businesses |
| MUDRA (Tarun) | ₹5–10 lakh | No | Any Indian citizen | Small business, services |
| Stand-Up India | ₹10 lakh+ | Yes (may vary) | SC/ST/Women Entrepreneurs | Greenfield enterprises |
9. Common Mistakes to Avoid
- Submitting an incomplete business plan
- Not attaching required caste or income certificates
- Poor CIBIL score if applying via bank
- Applying for existing businesses under PMEGP (only new businesses allowed)
- Not getting Udyam MSME registration in advance
10. Final Words: Start Your Business with Government Support
Getting a ₹10 lakh loan from the central government is entirely possible in 2025 if you meet the eligibility criteria and follow the proper process. With multiple schemes available for different categories of people—general, SC/ST, OBC, women, and youth—you can take the right step toward building a successful career in business.
Make sure you:
- Register your business under MSME
- Prepare a solid business plan
- Apply under the correct scheme (PMEGP, Mudra, Stand-Up India)
- Approach the right bank or nodal agency
These schemes are designed to promote Atmanirbhar Bharat (Self-Reliant India) and reduce unemployment through self-employment.
Official Links Summary
| Scheme | Website |
|---|---|
| PMEGP | https://www.kviconline.gov.in/pmegp |
| MUDRA Yojana | https://www.mudra.org.in |
| Stand-Up India | https://www.standupmitra.in |
| SC/ST Hub | https://www.scsthub.in |
| MSME Udyam Portal | https://udyamregistration.gov.in |
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