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Chandigarh Government Loan Schemes and Grants for Startups & MSMEs

Are you a startup or MSME in Chandigarh with big ideas but limited capital? You're not alone and more importantly, you're not without support. The Chandigarh administration, alongside the Indian central government, offers a robust lineup of funding, subsidy, and support schemes tailor-made for entrepreneurs like you.

Whether you're just starting up or scaling your MSME, this guide covers everything from Chandigarh-specific incentives to national loan schemes accessible right from the City Beautiful. Let’s break down what's on the table, how to grab your share, and how real entrepreneurs from Chandigarh are already making the most of these programs.

Chandigarh-Specific Support: Startup Policy 2025

Despite being a Union Territory, Chandigarh has launched its own Startup Policy 2025 to promote innovation and entrepreneurship. Here’s what it offers:

Dedicated Startup Fund

  • Annual Budget: ₹10 crore/year (Total ₹50 crore over 5 years)
  • Purpose: Grants, subsidies, and financial incentives
  • Goal: Help local startups access early-stage and growth capital

Incubator Strengthening

  • Support to Incubators: Up to ₹30 lakh (government), ₹20 lakh (private)
  • Annual Operational Aid: ₹7.5 lakh + ₹5 lakh for training/mentorship

Seed and Growth Grants

  • Seed Stage: ₹7 lakh for 20 startups (₹2 lakh extra for women/trans-led)
  • Early-Growth: ₹12 lakh for 20 startups

Startup Competitions & Awards

  • Annual Grand Challenge: ₹90 lakh prize pool
  • Top 20 Startups: ₹2 lakh + incubation
  • Next 50: ₹1 lakh each

Reimbursements & Incentives

  • Office Rent: ₹5,000/month
  • Certifications: Up to ₹1 lakh (ISO, etc.)
  • Patent Filing: ₹10,000
  • Travel Support: ₹50,000–₹2.5 lakh
  • International Programs: ₹2–₹3 lakh support

Focus on Inclusivity

Did You Know? Over 300 startups from Chandigarh are already recognized under Startup India.

Central Government Loan Schemes Available in Chandigarh

Now let’s look at the national-level schemes that you, as a Chandigarh-based entrepreneur, can access easily through banks, DIC, or KVIC offices.

PMEGP (Prime Minister’s Employment Generation Programme)

  • Loan Limit: ₹25 lakh (manufacturing), ₹10 lakh (services)
  • Subsidy: 15% to 35% (higher for SC/ST, women)
  • Purpose: Setting up new micro-enterprises
  • Where to Apply: DIC or KVIC portal

Mudra Yojana (PMMY)

  • Loan Types:
    • Shishu: Up to ₹50,000
    • Kishor: ₹50,000–₹5 lakh
    • Tarun: ₹5–₹10 lakh
  • Collateral: None
  • Ideal For: Traders, service providers, and micro-startups

Stand-Up India

  • Loan Range: ₹10 lakh to ₹1 crore
  • Eligibility: SC/ST or women entrepreneurs
  • Purpose: Greenfield ventures
  • Support: Guidance from SIDBI & online portal

CGTMSE (Credit Guarantee Fund Scheme)

  • Guarantee Cover: Up to ₹2 crore
  • Advantage: Encourages banks to lend without collateral

Sector-Specific and Niche Programs

Janaushadhi Kendras (apply)

  • Run a Generic Medicine Store
  • Incentives: One-time assistance, supply at wholesale rates
  • Chandigarh Update: New Kendras opened in Kajheri and surrounding areas

Agri-Clinics & Agribusiness Centres (ACABC)

  • Who Can Apply: Agri graduates/diploma holders
  • Benefits: 36% subsidy (44% for women), training, credit

Biotechnology Ignition Grant (BIG)

  • Funding: Up to ₹50 lakh
  • Ideal For: Biotech startups from Chandigarh biotech park, IISER, PGIMER, etc.

National Livestock Mission

  • Breeding Units: Subsidy up to ₹50 lakh (goat/sheep), ₹30 lakh (pig farming)
  • Urban-Rural Crossover: Chandigarh-based founders can apply for rural setups

Inclusive Schemes for SC/ST and Women

NBCFDC (OBC Loans)

  • Loan Limit: Up to ₹15 lakh
  • Interest: 6-8% typically

New Swarnima for Women

  • Loan: ₹2 lakh
  • Interest: Just 5%
  • No Margin Money Required

NSFDC for SC Entrepreneurs

  • Loan Support: ₹15 lakh to ₹5 crore
  • Interest Subsidy + Credit Guarantee cover

How Startups in Chandigarh Are Benefiting?

  • PMEGP: In 2017–18 alone, 45 Chandigarh projects funded, 360+ jobs created
  • Mudra Loans: Street vendors and shop owners have accessed loans up to ₹10 lakh
  • Stand-Up India: Women-led cafes, SC-owned factories funded in Mohali/Chandigarh
  • BIG Grants: Startups from IISER and PEC got funding for med-tech and agri-bio tech

Frequently Asked Questions (FAQs)

Q1. Do I need to register my startup to apply?
A: For most schemes, yes. DPIIT-recognized startups or MSMEs with Udyam registration are ideal.

Q2. Where can I apply for these schemes?
A: Through banks, DIC (Sector 17), KVIC, Startup India portal, and specific scheme websites.

Q3. Is collateral required for these loans?
A: Not for Mudra, CGTMSE-backed loans, or Stand-Up India loans under ₹10 lakh.

Q4. Who can apply for Chandigarh Startup Policy benefits?
A: Any startup based in Chandigarh, especially those incubated or DPIIT-recognized.

Q5. Where to get help in Chandigarh?
A: Visit the DIC, reach out to incubators at PU, STPI Mohali, or check the myScheme portal.

Final Thoughts: Why Now is the Best Time

Chandigarh is quietly becoming a launchpad for entrepreneurs who know where to look. With city-specific grants and access to India's largest funding schemes, the support system has never been stronger.

Whether you're a coder with a SaaS idea, a woman starting a café, or a biotech innovator, there’s financial and strategic support waiting for you.

Act Now – Don’t Miss the Wave

If you’re a founder, freelancer, or MSME owner in Chandigarh, explore these schemes now. StartupFlora can help you evaluate eligibility, draft business plans, and apply smartly. Reach out today and turn your startup goals into funded success.

Ready to grow your startup with the right support? Contact StartupFlora and let’s make it happen.

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