Himachal Pradesh Government Loan and Grants Schemes for Startups & MSMEs

Are You a Startup or MSME from Himachal Pradesh?

If yes, this article is your roadmap to explore how you can fund your business dreams. Himachal Pradesh has become a growing hub for eco-tourism, agri-business, handicrafts, and clean energy startups. To support this growth, both the Himachal Pradesh Government and the Central Government of India have launched various funding and subsidy schemes for entrepreneurs, MSMEs, and women-led startups.

How Himachal Pradesh’s Startups Can Take Advantage of It

The state government has simplified access to credit through online applications, startup facilitation centres, and partnership programs with national banks and ministries. Entrepreneurs can apply for subsidies, grants, and loans up to ₹25 lakh depending on their business type and scale.
According to recent reports, over 1,500 startups and MSMEs in Himachal Pradesh have already availed government schemes under the Startup India and PMEGP initiatives. The combined investment support has crossed ₹300 crore in the last few years, helping entrepreneurs expand manufacturing, tourism, and agri-based industries.

State-Wise Schemes and Incentives for Startups in Himachal Pradesh

1. Himachal Pradesh Startup Scheme

The Himachal Pradesh Startup Scheme aims to develop an ecosystem that promotes innovation and entrepreneurship.

• Eligibility: Startups recognized under DPIIT and based in Himachal Pradesh.
• Benefits:
  • Seed capital up to ₹25 lakh.
  • Reimbursement of lease rentals up to ₹5 lakh per year.
  • 100% stamp duty exemption for registered startups.
  • Mentorship support through incubation centers in Solan, Shimla, and Kangra.

2. Himachal Pradesh Industrial Investment Policy

This policy supports MSMEs and new manufacturing units in rural and semi-urban areas.

• Capital Subsidy: Up to 25% for new industries.
• Interest Subsidy: 5% on term loans for 5 years.
• Power Tariff Subsidy: 15% concession for industrial use.
• Women & SC/ST Entrepreneurs: Additional incentives of 10%.

3. Himachal Pradesh Agri & Food Processing Subsidy

For startups in agriculture, dairy, and food processing, the government offers:

• 35% capital investment subsidy up to ₹5 crore.
• 100% reimbursement on quality certification.
• Cold storage and logistics support under NABARD and NAIFF programs.

National-Level Schemes for Startups & MSMEs

1. Pradhan Mantri Bhartiya Janaushadhi Pariyojana

• Ministry: Chemicals & Fertilizers
• Objective: Promote affordable healthcare by setting up Janaushadhi Kendras selling generic medicines.
• Opportunity for Entrepreneurs:
  • Open a Janaushadhi Kendra with low investment.
  • Earn margins up to 20% on medicines.
  • Access to government-approved pharma supply chain.

2. Prime Minister's Employment Generation Programme (PMEGP)

• Ministry: Micro, Small & Medium Enterprises (MSME)
• Loan Limit: Up to ₹25 lakh for manufacturing & ₹10 lakh for service units.
• Subsidy: 15%–35% based on the region.
• Focus: Generate employment and promote micro-enterprises in rural India.

3. Stand-Up India Scheme

• Ministry: Finance
• Loan Support: ₹10 lakh to ₹1 crore for SC/ST and Women Entrepreneurs.
• Purpose: Financing greenfield projects in manufacturing, trading, or services.

4. Biotechnology Ignition Grant (BIG)

• Ministry: Science & Technology
• Grant: Up to ₹50 lakh for biotech startups.
• Purpose: To support innovative biotech ideas from concept to proof-of-concept stage.

5. New Swarnima Scheme for Women

• Ministry: Social Justice & Empowerment
• Loan: Up to ₹2 lakh at 5% interest for women entrepreneurs from backward classes.
• Aim: Encourage women to start small businesses and gain financial independence.

6. NBCFDC General Loan Scheme

• Beneficiary: Backward Class Entrepreneurs
• Loan Amount: Up to ₹15 lakh for income-generating activities.
• Subsidy: Interest rate below market average for economic upliftment.

7. Credit Based Schemes for SC Entrepreneurs

• Purpose: Provide low-interest loans for Scheduled Caste entrepreneurs.
• Loan Limit: ₹10 lakh to ₹50 lakh depending on business type.
• Implemented by: National Scheduled Castes Finance and Development Corporation (NSFDC).

8. Agri-Clinics and Agri-Business Centres Scheme

• Ministry: Agriculture & Farmers Welfare
• Support: Training, loans, and subsidies for agricultural graduates and rural youth.
• Objective: Generate employment through agribusinesses like seed supply, equipment rental, and consultancy.

9. National Livestock Mission – Piggery & Sheep Farming

• Ministry: Fisheries, Animal Husbandry and Dairying
• Support:
  • Subsidy up to ₹30 lakh for piggery units.
  • Assistance for goat and sheep breed development.
• Impact: Promotes sustainable animal husbandry and meat production.

10. Coir Vikas Yojana

• Ministry: MSME
• Objective: Boost coir industry through Skill Upgradation, Women Training, and Export Promotion.
• Subsidy: Support for machinery, export fairs, and marketing assistance.

How MSME Verified Certification Users Get Early Access to Himachal Pradesh Schemes?

MSME verified certification gives entrepreneurs quick access to state and central funding schemes in Himachal Pradesh. Verified startups get priority in loan approvals, faster subsidy disbursal, and eligibility for government tenders, ensuring early access to financial benefits and startup growth opportunities.

How to Apply for These Schemes

Entrepreneurs in Himachal Pradesh can apply through:

• https://msme.gov.in – For central MSME schemes
• https://startuphimachal.hp.gov.in – For Himachal Startup Schemes
• https://pmegp.gov.in – For PMEGP application
• District Industries Centres (DICs) – For offline registration and assistance

Impact of These Schemes on Himachal’s Entrepreneurial Growth

The number of registered startups in Himachal Pradesh has doubled in the last three years. More than ₹150 crore in loans and grants have been disbursed through PMEGP and Startup Himachal. The state’s startup ecosystem is now growing beyond tourism expanding into health tech, food processing, renewable energy, and handicrafts.

With initiatives like incubation centres at IIT Mandi and NIT Hamirpur, entrepreneurs are receiving expert guidance, funding mentorship, and market linkages that ensure long-term business sustainability.

FAQs on Himachal Pradesh Government Loan Schemes for Startups & MSMEs

Q1. What is the Himachal Pradesh Startup Scheme?
It is a state government program offering up to ₹25 lakh seed funding, rental reimbursement, and tax benefits to registered startups.

Q2. Can women entrepreneurs apply for these schemes?
Yes. Schemes like New Swarnima Scheme and Stand-Up India are specially designed for women entrepreneurs.

Q3. What is the eligibility for PMEGP loans?
Any Indian citizen above 18 years with a viable business idea and no prior subsidy availed under a similar scheme.

Q4. How can I apply for the Biotechnology Ignition Grant?
You can apply online via www.birac.nic.in under the BIG scheme for biotech-based startups.

Q5. What sectors are prioritized in Himachal Pradesh?
Agro-based industries, tourism, renewable energy, handicrafts, food processing, and IT-enabled services.

Conclusion

Government loan schemes have opened new doors for Himachal Pradesh’s entrepreneurs and MSMEs. Whether you’re a farmer, manufacturer, woman entrepreneur, or biotech innovator, these programs offer affordable funding, subsidies, and mentorship to grow your dream business.
So, if you’re ready to start your entrepreneurial journey Himachal Pradesh’s Startup and MSME Loan Schemes are the right place to begin!