SubcidysSubcidys homepage
Finance

Micro Finance Scheme for Small Businesses

Launched 2024
10L+ Beneficiaries

Government of India

Micro Finance Scheme for Small Businesses

Quick Navigation

Key FeaturesFinancial AidEligibilityDocumentsApply NowFAQs
Government Verified Scheme

Microfinance schemes provide small loans to micro-entrepreneurs and small businesses who lack access to traditional banking services. These schemes focus on financial inclusion and supporting the smallest business units.

Key Features

Small Loan Amounts

Loans ranging from ₹10,000 to ₹5 lakh for micro-enterprises

Quick Processing

Faster approval and disbursal compared to traditional bank loans

Flexible Terms

Repayment schedules designed for small business cash flows

Group Lending Models

Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) supported

Financial Assistance

ComponentAssistanceDetails
Loan Size₹10,000 to ₹5 lakhSuitable for working capital, equipment purchase, inventory
Interest RateCompetitive rates (varies by MFI/bank)Generally lower than money lenders, higher than regular bank loans
Processing Time7-15 days typicalMuch faster than traditional bank loan process
CollateralUsually no collateral requiredBased on group guarantee or cash flow assessment

Eligibility Criteria

Who Can Apply

Eligible Candidates

  • 1
    Micro-entrepreneurs and self-employed individuals
  • 2
    Small traders and service providers
  • 3
    Members of Self-Help Groups (SHGs)
  • 4
    Rural and urban micro-businesses

Who Cannot Apply

Ineligible Candidates

  • Large businesses or medium enterprises
  • Borrowers with recent defaults
  • Speculative business purposes
  • Luxury or non-productive purposes

Documents Required

Identity proof (Aadhaar/Voter ID/PAN)

Mandatory

Address proof

Mandatory

Business proof (shop registration/license)

Mandatory

Income proof or business revenue details

Mandatory

Passport size photographs

Mandatory

Bank account statements (if available)

Mandatory

How to Apply

Bank Branch

  1. 1
    Approach local Microfinance Institution (MFI) or bank branch
  2. 2
    Join or form a Self-Help Group if required
  3. 3
    Submit loan application with required documents
  4. 4
    MFI conducts field verification
  5. 5
    Loan committee approves application
  6. 6
    Loan disbursed within 7-15 days

Online Portal

Some MFIs offer online applications
NABARD's portal provides information on SHG-Bank Linkage

Frequently Asked Questions

An SHG is a group of 10-20 people from similar economic backgrounds who save regularly and take loans from common pool. Banks provide loans to SHGs at favorable terms.
Typically 7-15 days from application to disbursal, much faster than traditional bank loans.
100% Government Verified

Ready to Apply?

Start your journey towards business growth today

Your Privacy Matters

We use cookies to keep things running smoothly, remember your preferences, and understand how you use Subcidys. You’re in control. Learn more