Introduction
The Indian government under Prime Minister Narendra Modi has introduced several well-known loan schemes like Mudra Yojana and PM Awas Yojana. However, beyond the headlines, there are many lesser-known but highly beneficial loan schemes designed to support students, farmers, women entrepreneurs, small business owners, and rural youth.
These hidden schemes often go unnoticed due to lack of promotion but offer significant financial support with easy repayment terms and low interest. This blog highlights seven such underrated government-backed loan schemes in 2025 that you should know about.
1. Stand-Up India Scheme
Stand-Up India provides loans to Scheduled Caste, Scheduled Tribe, and women entrepreneurs for starting a greenfield enterprise in manufacturing, services, or trading sectors.
Key features:
- Loan amount: ₹10 lakh to ₹1 crore
- Repayment period: Up to 7 years
- Minimal collateral due to guarantee support
Why it’s useful:
Ideal for women and SC/ST individuals launching a new business in 2025.
2. PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)
This scheme is designed for street vendors who lost their income during the pandemic and want to revive their small businesses.
Key features:
- Initial loan: ₹10,000 (collateral-free)
- Interest subsidy on timely repayment
- Higher loan amounts in 2nd and 3rd cycles
Why it’s useful:
Perfect for small street vendors looking to re-establish their livelihood.
3. Dairy Entrepreneurship Development Scheme (DEDS)
Implemented through NABARD, this scheme supports farmers and entrepreneurs involved in the dairy sector.
Key features:
- Subsidy up to 33% for SC/ST and 25% for others
- Loan covers dairy infrastructure, milch animals, and equipment
Why it’s useful:
Highly beneficial for rural youth or families interested in dairy farming.
4. CGTMSE Loan Scheme
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides credit guarantees for collateral-free loans to small businesses.
Key features:
- Loan up to ₹2 crore without collateral
- Coverage for manufacturing and service units
- Available through approved banks and NBFCs
Why it’s useful:
Best for small startups that don’t have assets for security.
5. Education Loan under Vidya Lakshmi Portal
While education loans are offered by banks, the Vidya Lakshmi Portal aggregates and connects students to government-backed loans and subsidies.
Key features:
- Apply to multiple banks with one application
- Interest subsidy available for low-income families
- Covers tuition, hostel, books, and more
Why it’s useful:
Simplifies the process for students seeking loans for higher studies.
6. Venture Capital Assistance Scheme
This scheme supports agri-business startups with equity-based funding and working capital loans.
Key features:
- Assistance through NABARD and SFAC
- Offers soft loans to bridge funding gaps
- Focus on rural and agriculture-linked industries
Why it’s useful:
Excellent for agri-tech startups or rural entrepreneurs in 2025.
7. Pradhan Mantri Rozgar Yojana (PMRY)
Though lesser-known today, this scheme provides financial support for unemployed youth to start self-employment ventures.
Key features:
- Target group: 18–35 years old with basic education
- Subsidy up to 15% of project cost
- Available for both urban and rural applicants
Why it’s useful:
Encourages self-employment and small business creation in semi-urban areas.
Conclusion
These hidden loan schemes under the Modi government are designed to empower different sections of society — from women entrepreneurs and rural youth to students and small traders. While they may not make daily headlines, they offer real financial help with accessible terms and long-term benefits.
If you are planning to start a business, pursue higher education, or revive a small trade in 2025, exploring these lesser-known schemes could be the smartest financial move you make this year