Uttar Pradesh Government Loan and Grant Schemes for Startups & MSMEs

Are You a Startup or MSME from Uttar Pradesh?

If yes, this is your time to grow! The Uttar Pradesh government has launched several loan, grant, and subsidy schemes to empower startups and MSMEs. These initiatives aim to support innovation, entrepreneurship, and job creation across various sectors like agriculture(check scheme), biotechnology, finance, and manufacturing. Let’s explore how startups from Uttar Pradesh can take full advantage of these schemes and how many have already benefited.

How Uttar Pradesh’s Startups Can Take Advantage of It

Uttar Pradesh has emerged as one of India’s top startup destinations, with over 9,000+ startups registered under the Startup India initiative. Cities like Noida, Lucknow, Kanpur, and Varanasi are becoming startup hubs. Entrepreneurs can access state-specific and national schemes offering low-interest loans, grants, and subsidies to reduce financial risk and scale their ventures faster.

State-Wise Schemes for Startups & MSMEs in Uttar Pradesh

1. Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP)

• Launched by: Ministry of Chemicals and Fertilizers
• Objective: To make affordable generic medicines available through dedicated Janaushadhi Kendras.
• Eligibility: Entrepreneurs interested in opening medical stores or expanding in healthcare.
• Benefit: Financial support and subsidized setup for Janaushadhi stores.

2. Prime Minister’s Employment Generation Programme (PMEGP👆)

• Launched by: Ministry of MSME
• Objective: To generate self-employment opportunities by setting up micro-enterprises.
• Loan Coverage: Up to ₹25 lakhs for manufacturing and ₹10 lakhs for service units.
• Subsidy: 15–35% based on the area and category.
• Uttar Pradesh Impact: Over 1 lakh micro-units have benefited under PMEGP.

3. Establishment of Entrepreneur for Breed Development in Small Ruminant Sector

• Launched by: Ministry of Fisheries, Animal Husbandry, and Dairying
• Focus: Supporting sheep and goat farming entrepreneurs.
• Benefit: Financial aid and breed improvement support for rural entrepreneurs.

4. Stand-Up India Scheme

• Launched by: Ministry of Finance
• Objective: To finance SC/ST and women entrepreneurs for greenfield projects in manufacturing, trading, or services.
• Loan Amount: ₹10 lakh to ₹1 crore.
• Impact in Uttar Pradesh: Over 12,000 women entrepreneurs have received funding.

5. Agri-Clinics and Agri-Business Centres Scheme (AC&ABC)

• Launched by: Ministry of Agriculture & Farmers Welfare
• Purpose: Encourages agri-graduates to set up agribusiness centers to provide expert advice to farmers.
• Support: Training, credit, and back-end subsidies up to ₹20 lakh.

6. NBCFDC General Loan Scheme

• Launched by: Ministry of Social Justice and Empowerment
• Eligibility: Entrepreneurs from Backward Classes.
• Loan Limit: Up to ₹15 lakh for income-generating activities.

7. Biotechnology Ignition Grant (BIG)

• Launched by: BIRAC under the Ministry of Science & Technology
• Objective: To support early-stage startups in the biotech sector.
• Grant Amount: Up to ₹50 lakh for proof-of-concept or prototype development.

8. New Swarnima Scheme for Women

• Launched by: Ministry of Social Justice and Empowerment
• Objective: To empower backward class women entrepreneurs through soft loans.
• Loan Limit: ₹2 lakh @ 5% interest rate.

9. RKVY Soil Health and Fertility Village-Level Lab Scheme

• Launched by: Ministry of Agriculture
• Goal: Promote soil testing and fertility management through rural entrepreneurship.

10. Credit-Based Schemes for SC (Term Loan)

• Launched by: Ministry of Social Justice and Empowerment
• Benefit: Financial support for Scheduled Caste entrepreneurs for business expansion and startup setup.

National-Level Schemes Benefiting Uttar Pradesh Entrepreneurs

1. National Livestock Mission – Promotion of Piggery Entrepreneur

• Objective: To promote pig farming and increase pork production.
• Subsidy: One-time capital subsidy up to ₹30 lakh.

2. Credit Enhancement Guarantee Scheme for Scheduled Castes

• Purpose: Provides credit guarantees to SC entrepreneurs to help them access loans easily.

3. Khadi Karigar Janashree Bima Yojana

• Objective: Offers insurance benefits for khadi artisans like spinners and weavers.
• Coverage: Normal and accidental death, disability benefits.

4. Coir Vikas Yojana – Skill Upgradation and Mahila Coir Yojana

• Focus: Promotes self-employment for women through coir-based skills.
• Includes: Training, stipend, and support for MSME entrepreneurs.

5. Coir Vikas Yojana – Export Market Promotion Scheme

• Objective: To increase Indian coir exports through market promotion activities.

How Uttar Pradesh’s Entrepreneurs Are Already Benefiting

According to Startup India data (2024), Uttar Pradesh has over 1.2 lakh registered MSMEs and 9,000+ startups. Many of these have availed government loans and grants, resulting in:

• Over ₹1,200 crore disbursed through PMEGP.
• ₹200 crore+ in biotech startup funding via BIG scheme.
• Thousands of women entrepreneurs funded under Stand-Up India and New Swarnima.

These numbers highlight Uttar Pradesh’s rapid rise as an entrepreneurial powerhouse in North India.

How StartupFlora Helps Entrepreneurs?

StartupFlora, partnered with multiple incubation and funding agencies, helps Uttar Pradesh startups connect with investors, government grant programs, and mentors. The platform provides end-to-end consultancy for Startup India registration, funding documentation, and business growth support.

StartupFlora acts as a bridge between startups and government initiatives, ensuring entrepreneurs never miss any opportunity for funding or grants.

Conclusion

From biotechnology to coir crafts, and from women entrepreneurship to livestock farming Uttar Pradesh’s startups have access to multiple loan and grant schemes designed to empower innovation and employment. By leveraging both state and national schemes, entrepreneurs can secure the financial and technical support needed to grow sustainably.

If you are a startup founder or MSME owner in Uttar Pradesh, this is the right time to register your business, apply for subsidies, and grow with government support.

FAQs

Q1. What is the best government loan scheme for startups in Uttar Pradesh?
The PMEGP and Stand-Up India are among the most popular schemes offering up to ₹1 crore in financial assistance.

Q2. How can women entrepreneurs get loans in Uttar Pradesh?
Women can apply under the New Swarnima Scheme and Stand-Up India for low-interest business loans.

Q3. Is there any grant scheme for biotechnology startups?
Yes, the Biotechnology Ignition Grant (BIG) by BIRAC provides up to ₹50 lakh in funding.

Q4. How to apply for these schemes?
You can apply through the official government portals or get expert assistance from StartupFlora.

Q5. Are these schemes available for rural entrepreneurs?
Yes, several schemes like RKVY Soil Health Lab and Goat/Sheep Farming Scheme focus on rural entrepreneurship.