Important Contact Numbers to MSME Schemes 2025-26

The Backbone of the Indian Economy: An Introduction to MSMEs

Micro, Small, and Medium Enterprises (MSMEs) are the engine of economic growth and development in India. They are the second-largest employer after agriculture, providing livelihood to millions of people. The MSME sector is a diverse and dynamic space, encompassing a wide range of industries, from traditional crafts to high-tech manufacturing. Recognizing their immense contribution to the national economy, the Government of India has launched a plethora of schemes and initiatives to support and promote MSMEs. This guide provides a comprehensive overview of the most important MSME schemes for the years 2025-26, along with practical guidance on how to avail their benefits.

The landscape for MSMEs is constantly evolving, and the government is committed to creating a more enabling environment for them to thrive. The focus for 2025-26 is on enhancing their competitiveness, promoting innovation, facilitating access to finance, and creating a more robust support ecosystem. This guide is designed to be your trusted companion on this journey, helping you navigate the various schemes and make informed decisions for your business.

Understanding the MSME Classification

Before we delve into the schemes, it’s important to understand the latest definition of MSMEs, which is based on a composite criterion of investment in plant and machinery/equipment and annual turnover.

This classification is crucial as it determines your eligibility for various schemes and benefits.

I. Credit and Financial Assistance Schemes

Access to timely and affordable credit is one of the biggest challenges for MSMEs. The government has introduced several schemes to address this issue and ensure that MSMEs have the financial resources they need to grow and expand.

1. Pradhan Mantri Mudra Yojana (PMMY)

The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India to provide financial support to non-corporate, non-farm small/micro-enterprises. The scheme offers loans up to ₹10 lakh through Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs.

Key Features:

• Loan Categories:
  • Shishu: Loans up to ₹50,000
  • Kishore: Loans from ₹50,001 to ₹5,00,000
  • Tarun: Loans from ₹5,00,001 to ₹10,00,000
• No Collateral: No collateral or third-party guarantee is required for loans up to ₹10 lakh.
• Purpose of Loan: The loans can be used for a variety of purposes, including working capital, purchase of machinery, and business expansion.
• Mudra Card: A RuPay debit card is issued to the borrower, which can be used to withdraw cash from ATMs or make purchases at merchant establishments.

Practical Example:

• Scenario: A small bakery owner wants to buy a new oven to increase production.
• Solution: They can apply for a Kishore loan under the Mudra Yojana to finance the purchase of the new equipment.

2. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS)

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched to provide collateral-free credit to the micro and small enterprise sector. The scheme is operated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Key Features:

• Collateral-free Loans: The scheme provides a guarantee cover for collateral-free loans up to ₹2 crore.
• Eligible Borrowers: New and existing micro and small enterprises are eligible to apply.
• Lending Institutions: The loans are provided by scheduled commercial banks and select regional rural banks.

Practical Example:

• Scenario: A tech startup needs a loan to develop a new software product but doesn’t have any assets to offer as collateral.
• Solution: They can apply for a loan under the CGS, and the CGTMSE will provide a guarantee to the lending institution.

3. Stand-Up India Scheme

The Stand-Up India Scheme was launched to promote entrepreneurship among women and Scheduled Castes (SC) & Scheduled Tribes (ST). The scheme facilitates bank loans between ₹10 lakh and ₹1 crore to at least one SC/ST borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.

Key Features:

• Target Audience: The scheme is specifically for women and SC/ST entrepreneurs.
• Loan Amount: The loan amount ranges from ₹10 lakh to ₹1 crore.
• Margin Money: The borrower is required to bring in a margin money of 10% of the project cost.
• Handholding Support: The scheme also provides for handholding support to the borrowers through various agencies.

Practical Example:

• Scenario: A woman entrepreneur wants to start her own boutique but lacks the necessary capital.
• Solution: She can apply for a loan under the Stand-Up India Scheme to get the required funding and also receive guidance on setting up her business.

II. Skill Development and Training Schemes

In today’s competitive world, it is essential for MSMEs to have a skilled workforce. The government has launched several schemes to provide training and skill development opportunities to MSME owners and their employees.

1. A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)

ASPIRE is a scheme that aims to promote innovation and entrepreneurship in the agro-industry. The scheme provides for the setting up of Livelihood Business Incubators (LBIs) and Technology Business Incubators (TBIs) to provide training and support to entrepreneurs.

Key Features:

• Focus on Agro-Industry: The scheme focuses on promoting entrepreneurship in the rural and agro-based sectors.
• Incubation Support: It provides for the setting up of incubators to nurture new ideas and businesses.
• Skill Development: The incubators provide training and skill development programs to aspiring entrepreneurs.

Practical Example:

• Scenario: An individual has an innovative idea for a food processing business but lacks the technical know-how and resources to start it.
• Solution: They can approach a Livelihood Business Incubator set up under the ASPIRE scheme to get the necessary training, mentorship, and support.

2. Entrepreneurship and Skill Development Programme (ESDP)

The Entrepreneurship and Skill Development Programme (ESDP) is a scheme that aims to promote entrepreneurship and provide skill development training to the youth. The scheme is implemented through various organizations, including MSME-Development Institutes, Khadi and Village Industries Commission (KVIC), and Coir Board.

Key Features:

• Wide Range of Programs: The scheme offers a wide range of training programs in various sectors.
• Target Audience: The programs are designed for youth, students, and aspiring entrepreneurs.
• Focus on Practical Skills: The training programs focus on providing practical skills and knowledge to the participants.

Practical Example:

• Scenario: A group of college students wants to learn about digital marketing to start their own online business.
• Solution: They can enroll in a digital marketing training program offered under the ESDP scheme to acquire the necessary skills.

III. Technology and Quality Upgradation Schemes

To compete in the global market, it is essential for MSMEs to adopt the latest technology and maintain high-quality standards. The government has launched several schemes to help MSMEs in this regard.

1. Credit Linked Capital Subsidy Scheme (CLCSS)

The Credit Linked Capital Subsidy Scheme (CLCSS) is a scheme that provides a capital subsidy to MSMEs for technology upgradation. The scheme is implemented by the Small Industries Development Bank of India (SIDBI).

Key Features:

• Capital Subsidy: The scheme provides a 15% capital subsidy on institutional finance of up to ₹1 crore.
• Technology Upgradation: The subsidy is provided for the induction of well-established and improved technology in the approved sub-sectors/products.
• Eligible Enterprises: Micro and small enterprises are eligible to apply.

Practical Example:

• Scenario: A small-scale manufacturing unit wants to upgrade its machinery to improve efficiency and productivity.
• Solution: They can avail of the CLCSS to get a subsidy on the loan taken for purchasing the new machinery.

2. ZED Certification Scheme

The ZED (Zero Defect Zero Effect) Certification Scheme is a scheme that aims to promote the manufacturing of high-quality products with zero defects and zero environmental impact. The scheme is implemented by the Quality Council of India (QCI).

Key Features:

• Financial Support: The scheme provides financial support to MSMEs for obtaining ZED certification.
• Handholding and Consultancy: It also provides handholding and consultancy services to help MSMEs improve their quality and environmental performance.
• Benefits of Certification: ZED-certified MSMEs can enjoy several benefits, including preference in government procurement and access to international markets.

Practical Example:

• Scenario: A garment manufacturing unit wants to export its products to the European market, which has strict quality and environmental standards.
• Solution: They can apply for ZED certification to demonstrate their commitment to quality and sustainability, which will help them gain access to the international market.

Important Contact Numbers and a Practical Guide: Who to Call and When

Navigating the bureaucratic landscape can be a daunting task for any entrepreneur. This section provides a practical guide to the key organizations and their contact details, along with real-world scenarios to help you understand who to approach for specific issues.

1. Ministry of Micro, Small and Medium Enterprises (M/o MSME)

The Ministry of MSME is the central nervous system for all MSME-related policy and implementation in India. It’s the highest authority, responsible for creating the framework that supports your business.

Contact Details:

Practical Use Cases: When to Contact the Ministry or DC Office

• You have a policy suggestion: If you believe a specific policy is hindering growth in your sector or have an idea for a new initiative, you can formally write to the Ministry. This is for high-level feedback that could impact the entire MSME landscape.
• You need clarification on a new scheme: When the government announces a new scheme, the Office of the Development Commissioner (DC) is the best place to get authoritative information on its rules, eligibility, and application process.
• You’ve exhausted all other options: If you have a serious grievance that hasn’t been resolved at the local or regional level (e.g., with an MSME-DFO), you can escalate the issue to the DC office.

2. Khadi and Village Industries Commission (KVIC)

KVIC is dedicated to promoting and developing rural industries, with a special focus on Khadi. If your business is tied to traditional crafts or rural entrepreneurship, KVIC is your primary support system.

Contact Details:

Practical Use Cases: When to Contact KVIC

• You want to start a handmade paper unit: You’ve heard about the Prime Minister’s Employment Generation Programme (PMEGP) and want to know if it applies to your idea of starting a small-scale, eco-friendly paper manufacturing business in your village. KVIC can guide you on project viability and funding.
• You need help marketing your village industry products: You produce high-quality honey but struggle to find a market beyond your local area. KVIC can help you connect with larger markets, participate in exhibitions, and even get your products listed on their e-commerce platform.
• You need technical training for soap making: You want to start a small herbal soap-making business but lack the technical expertise. KVIC conducts training programs and workshops on various village industries and can provide the skills you need.

3. Coir Board

If your business involves anything related to coconut fiber—from making ropes and mats to innovative products like coir-based geotextiles—the Coir Board is your specialized partner.

Contact Details:

Practical Use Cases: When to Contact the Coir Board

• You want to modernize your coir spinning unit: You’re still using traditional, labor-intensive methods and want to upgrade to modern machinery to improve efficiency and quality. The Coir Board can provide information on technology upgradation schemes and subsidies.
• You’ve developed a new coir-based composite material: You have an innovative idea for a wood-substitute using coir but need help with research and development (R&D) and testing. The board’s research institutes can provide the technical assistance you need.
• You want to export your coir doormats: You’re looking to tap into international markets but are unsure about quality standards and potential buyers. The Coir Board facilitates export promotion and can connect you with international trade fairs and buyers.

4. National Small Industries Corporation Limited (NSIC)

NSIC is focused on making MSMEs more competitive. It acts as a facilitator, providing integrated support services in marketing, technology, finance, and other areas.

Contact Details:

Practical Use Cases: When to Contact NSIC

• You want to sell your products to the government: You manufacture office furniture and want to become a supplier for government departments and Public Sector Undertakings (PSUs). NSIC’s Government Stores Purchase Program can help you get registered and participate in tenders.
• You need to lease machinery without a large upfront investment: Your business needs a sophisticated CNC machine to grow, but you can’t afford to buy it outright. NSIC’s scheme for leasing machinery can provide the equipment you need on affordable terms.
• You need a raw material credit facility: Your orders are growing, but you face a cash crunch when it comes to purchasing raw materials in bulk. NSIC can provide short-term credit to help you procure the necessary materials to fulfill your orders.

5. National Institute for Micro, Small and Medium Enterprises (NI-MSME)

NI-MSME is a premier institution for training, research, and consultancy in the MSME sector. It’s the place to go for building your entrepreneurial and managerial skills.

Contact Details:

Practical Use Cases: When to Contact NI-MSME

• You want to attend a workshop on export management: You are planning to take your business global and need to understand the procedures, documentation, and market strategies. NI-MSME regularly conducts specialized training programs on these topics.
• You are an aspiring entrepreneur needing a foundational course: You have a business idea but no formal business training. NI-MSME offers Entrepreneurship Development Programs (EDPs) that cover everything from business plan creation to financial management.
• Your organization needs a customized training module: You run a small manufacturing company and want to train your supervisors on quality control and lean manufacturing principles. NI-MSME can design and deliver a custom training program tailored to your company’s specific needs.

Your Local Support Network: MSME Development and Facilitation Offices (MSME-DFOs)

These are your on-the-ground support centers. Formerly known as Small Industries Service Institutes (SISIs), MSME-DFOs are spread across the country to provide direct assistance to entrepreneurs. They are your first point of contact for most practical issues.

When to Contact Your Nearest MSME-DFO:

• You need help preparing a project report for a bank loan.
• You want to participate in a vendor development program.
• You need technical advice on improving your manufacturing process.
• You want to attend a local workshop on GST or digital marketing.
• You need information about a specific government scheme and how to apply for it.

Find Your Local MSME-DFO (A selection of key locations):

Note: For a complete list including Branch MSME-DFOs, please refer to the official Ministry of MSME website.

Frequently Asked Questions (FAQs)

This section provides answers to some of the most frequently asked questions about MSME schemes and registration.

General FAQs

1. What is the Udyam Registration?
   Udyam Registration is the new process of MSME registration. It is a simple, online, and paperless process that can be completed on the Udyam Registration portal.
2. Is Udyam Registration mandatory?
   While it is not mandatory for all MSMEs, it is advisable to get Udyam Registration to avail of the benefits of various government schemes.
3. What are the documents required for Udyam Registration?
   The only document required for Udyam Registration is your Aadhaar number.
4. Can I register more than one enterprise with a single Aadhaar number?
   Yes, you can register multiple enterprises with a single Aadhaar number.
5. Is there any fee for Udyam Registration?
   No, there is no fee for Udyam Registration.
6. How long is the Udyam Registration valid?
   The Udyam Registration is valid for a lifetime.
7. Can I update my Udyam Registration details?
   Yes, you can update your Udyam Registration details online.
8. What is the difference between Udyam Registration and Udyog Aadhaar?
   Udyam Registration is the new and simplified process of MSME registration that has replaced the earlier Udyog Aadhaar Memorandum (UAM).
9. I have a Udyog Aadhaar. Do I need to get Udyam Registration?
   Yes, all existing UAM holders are required to migrate to the Udyam Registration portal.
10. What is the CHAMPIONS portal?
    CHAMPIONS (Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength) is an online platform launched by the Ministry of MSME to help and handhold MSMEs.

Scheme-Specific FAQs

Pradhan Mantri Mudra Yojana (PMMY)

11. Who is eligible for a Mudra loan?
    Any Indian citizen who has a business plan for a non-farm sector income-generating activity such as manufacturing, processing, trading, or service sector and whose credit need is less than ₹10 lakh.
12. What is the interest rate for Mudra loans?
    The interest rates are deregulated and are left to the lending institutions to decide.
13. Is there any subsidy on Mudra loans?
    There is no subsidy on Mudra loans.
14. How can I apply for a Mudra loan?
    You can apply for a Mudra loan at any of the lending institutions mentioned above or through the Udyamimitra portal.
15. What is the repayment period for a Mudra loan?
    The repayment period is up to 5 years.

Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS)

16. What is the maximum loan amount that can be covered under the CGS?
    The maximum loan amount that can be covered under the CGS is ₹2 crore.
17. Is there any fee for the guarantee cover?
    Yes, a guarantee fee is charged by the CGTMSE.
18. Who are the eligible lending institutions under the CGS?
    Scheduled commercial banks and select regional rural banks are the eligible lending institutions.
19. Can a trading unit avail of a loan under the CGS?
    Yes, a trading unit is eligible for a loan under the CGS.
20. How do I apply for a loan under the CGS?
    You can approach the eligible lending institutions for a loan under the CGS.

Conclusion: A Bright Future for Indian MSMEs

The MSME sector is poised for a bright future, with the government’s unwavering commitment to creating a more supportive and enabling ecosystem. The schemes and initiatives outlined in this guide are a testament to this commitment. By taking advantage of these opportunities, MSMEs can overcome their challenges, enhance their competitiveness, and contribute to the nation’s economic growth.

This guide is intended to be a living document, and we will continue to update it with the latest information and developments. We encourage you to visit the official websites of the Ministry of MSME and other related organizations for the most up-to-date information.

We hope this guide will serve as a valuable resource for you on your entrepreneurial journey. We wish you all the best in your endeavors.

Disclaimer: The information provided in this guide is for general informational purposes only. While we have made every effort to ensure the accuracy and completeness of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the guide or the information, products, services, or related graphics contained in the guide for any purpose. Any reliance you place on such information is therefore strictly at your own risk. Please consult the official websites of the respective government departments for the latest and most accurate information.