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Funding Guide2025

How to Get Business Funding in India

Complete 2025 guide to funding options, government schemes, and loan application process for MSMEs and startups

Updated January 2025
10 min read
12,450 views

₹2 Cr

Max Collateral-Free Loan

7-14 Days

Fast Approval

35%

Max Subsidy

50 Lakh+

Businesses Funded

Introduction

Starting or growing a business in India often begins with one question — how to get funding for business in India. Whether you're a small startup, a woman entrepreneur, or an MSME owner, funding is the fuel that helps your business grow, scale, and innovate.

The good news? In 2025, getting business funding in India is easier than ever — thanks to a mix of government schemes, startup programs, and collateral-free loan options.

Let's explore all the ways you can get business funding — and how to apply the right way.

#BusinessFunding#MSMELoans#StartupIndia

1. Business Funding Options in India

Here are the major funding options for small businesses in India:

Bank Loans

Traditional loans from public and private banks

Examples

SBI, HDFC, ICICI

NBFC Loans

Quick digital approvals from Non-Banking Financial Companies

Examples

Bajaj Finserv, Tata Capital

Government Schemes

Subsidy-based loans with government backing

Examples

Mudra, CGTMSE, PMEGP

Startup Programs

Seed funding and incubator support

Examples

Startup India, SIDBI

Angel & VC

High-growth startup investment

Examples

Sequoia, Accel Partners

💡 Pro Tip: Each funding source suits a different stage — from idea to expansion — so choose what aligns with your business goals.

2. Government Funding for Business in India

The government supports MSMEs and startups through multiple funding schemes and grants:

SchemeIs Colletral Free ?Funding SupportWho Can Apply
Mudra Loan Scheme
Yes
Up to ₹10 lakhMicro & small businesses
Stand Up India
Yes
₹10 lakh to ₹1 croreWomen & SC/ST entrepreneurs
CGTMSE Scheme
Yes
Up to ₹2 croreNew & existing MSMEs
PMEGP
No
Subsidy up to 35%Manufacturing & service sectors
Startup India Seed Fund
Yes
₹50 lakh grantEarly-stage startups

💡 Pro Tip: If you're unsure which scheme fits your business, our MSME experts can help you find and apply for the right one — fast-tracked and error-free.

3. How to Apply for a Business Loan in India

Applying for a business loan is now a quick and digital process. Follow this step-by-step guide:

01

Identify Your Loan Type

Term loan, working capital loan, or MSME loan based on your needs

02

Check Eligibility

Verify turnover, age, credit score, and business vintage requirements

03

Gather Documents

Prepare Udyam registration, GST/ITR returns, bank statements, PAN & Aadhaar

04

Apply Online

Submit via PSB Loans in 59 Minutes, Udyam, or your preferred bank/NBFC

05

Track Application

Monitor approval updates and subsidy notifications online

Need Expert Help?

Our experts assist in identifying schemes, preparing documents, and ensuring faster approvals

4. Business Loan Without Collateral

Many MSMEs struggle with collateral requirements. Thankfully, several schemes offer collateral-free business loans:

CGTMSE Loan

Up to ₹2 crore

No collateral
Government guarantee
Easy approval

Mudra Loan

Up to ₹10 lakh

Micro businesses
Online approval
Simple process

PMEGP

Subsidy-based

Capital support
Manufacturing focus
Easy eligibility

👉 Apply online for CGTMSE loan without collateral and grow your business confidently.

5. MSME Business Funding Schemes

Top MSME funding schemes in 2025:

ZED Certification

Quality manufacturing with incentives

Quality improvementCost reductionCompetitive advantage

TREAD Scheme

Training and funding for women entrepreneurs

Skill developmentFinancial supportMentorship

MSME CHAMPIONS

Digital growth & technology adoption

Tech adoptionDigital presenceMarket access

Each program reduces cost and improves access to finance — making MSMEs more competitive globally.

6. Required Documents for Business Funding

Keep these documents ready for a smooth application process:

Udyam Registration Certificate
ITR & GST returns
Business bank statements (6-12 months)
PAN & Aadhaar of owner
Proof of business address

7. Frequently Asked Questions

You can apply through Startup India, Mudra Yojana, or private NBFCs that fund early-stage businesses. Each option offers different benefits - Startup India provides seed funding up to ₹50 lakh for DPIIT-recognized startups, while Mudra offers collateral-free loans up to ₹10 lakh for micro businesses.
The top schemes include Mudra Loan (up to ₹10 lakh), Stand Up India (₹10 lakh to ₹1 crore), CGTMSE (up to ₹2 crore), and PMEGP (subsidy up to 35%). Each scheme targets different business types and stages.
Apply under subsidy-linked schemes like PMEGP and ZED via the MSME portal. PMEGP offers 15-35% subsidy on project cost, while ZED provides financial support for quality certification. Registration on the Udyam portal is mandatory.
Through PSB Loans in 59 Minutes portal or your bank's MSME loan portal. The process is completely digital - you can apply, upload documents, and track status online. Approval typically takes 7-14 days for eligible applicants.

Conclusion

Getting business funding in India no longer requires long paperwork or endless visits to the bank. With the right guidance and schemes, any entrepreneur can get funding within weeks.

With dozens of active funding and mentorship programs, 2025 is the best time to start or scale your business. Whether you need collateral-free loans, tax benefits, or expert guidance, there's a scheme designed for your needs.

💬 Need help applying for the right loan or subsidy?

Our team helps MSMEs identify, apply, and fast-track funding — saving you time and increasing approval chances.

SC

Sunpaz Consulting Team

Expert business consultants specializing in government schemes, MSME funding, and startup registration

10+ Years Experience
5+ Businesses Helped
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How to Get Funding for Business in India 2025: Complete Guide | Sunpaz Support | Sunpaz Consulting