Low Interest Rate Business Loan 2026: Starting one’s own business has become a passion and dream for today’s youth. There are many examples in India of people who have started their own businesses at a young age and have made their names in the list of top rich people. Nowadays, the biggest problem that the youth is facing for their business or for starting a business is money. To overcome this problem, the government is encouraging the youth of the country to start their own business. There are many such schemes in India through which direct loans are being provided at low interest rates (Low Interest Rate Business Loan 2026).
Dear readers, let us learn through this blog post how to take a business loan at very low interest and what are the schemes available. And the things you need to keep in mind along with the documents required for the loan, terms, conditions and other important information.
What are Low Interest Rate Business Loans 2026
The Government of India is providing loans to the youth of the country to set up their own business through various schemes at low interest rates and you can avail these loans at very low interest rates as compared to the private schemes of banks. Due to which the youth of the country can immediately take a loan to start their own business and can get the loan directly without going around any banks. Complete information has been given, let us know.
Who can take a loan?
Let’s discuss these government business loan schemes in detail, including who can and cannot take a loan under these schemes.
• The age limit of the applicant taking the loan should be more than 18 years, under which the government will consider him/her as an adult and will provide the loan.
• Both men and women can avail the loan and must be citizens of India.
• The applicant must not be under heavy debt, bankrupt, or insane before applying for the loan.
• You must have detailed information about your business, such as certificates or any business credentials.
• All the required documents that are required must be valid.
Benefits of Business Loans
Nowadays, all the youth who want to do something for themselves can start their own business by taking loan from these loan schemes and through this process, you do not need to beg in front of any moneylender, you will get the loan directly from the bank.
Now you don’t have to hassle any banks or run around people like before because now you can also apply online, which will get your loan approved directly without any unnecessary hassle. Complete information about the necessary documents you must have to avail a business loan is provided below.
Low Interest Rate Business Loan 2026 Following Scheme
1. CGTMSE Loan Scheme 2026
MSME Loan Without Guarantee: Anyone seeking a loan for their own business can avail a business loan directly from this MSME loan scheme. This scheme has an important contribution of the Government of India in promoting business in the country and strengthening the foundation of a developed India. Let us know how you will get a loan under this scheme and what things you should keep in mind in it.
• CGTMSE Interest Rate – Talking about the interest rate, the interest rate charged in this scheme ranges from 7.5% to 10%, which is much lower than all other loan schemes.
• CGTMSE Loan Amount – According to some estimates, the loan amount is up to ₹2 crore i.e.
• CGTMSE Benefits- This is a type of no collateral loan, the big thing is that the government itself covers 75% to 85% of the risk.
• CGTMSE Application Process- After knowing the rules, policies and detailed information from the official site of MSME department, you can apply online and can apply for loan from any nearby bank. There are online and offline applications in the scheme.
2. MSME Loans by SIDBI (4E, SMILE Scheme, etc.)
SIDBI offers MSME loans with low interest rates and loan amounts. Those who want to start their own small business can avail this facility.
• Interest Rates – Depending on the scheme, the interest rates range from 6.5% to 9.5%, allowing you to avail a large loan.
• Loan Amount – MSME Loans (4E, SMILE Scheme, etc.) by SIDBI range from ₹25 lakh to ₹1 crore.
• Benefits: The biggest advantage of this scheme is that it offers low interest rates, quick loan availability, and has special schemes for MSMEs.
3. Stand Up India Loan
All Indian citizens who wish to take out a loan to expand their business or start a business are immediately provided loans under this scheme.
• State Up India Loan – Loan amounts under this scheme range from ₹10 lakh to ₹1 crore.
• Loan interest rates – Interest rates can be around 8% to 10%, similar to the MCLR, with a small spread, compared to other loan schemes.
• Benefits- It will be very beneficial for taking a large amount, because it provides a large loan amount, government guarantee will be provided, it is the best scheme for opening a new business.
4 Prime Minister’s Employment Generation Programme (PMEGP)
The PMEGP scheme, developed for India’s unemployed youth and business owners, is a major scheme through which everyone can easily avail loans.
• PMEGP Interest Rates- Interest rates range from 11 to 12% but the good news is that the government also provides you subsidy of 25% to 35%.
• PMEGP loan amount – ₹25 lakh (manufacturing) and ₹8 lakh (service sector).
• The main objective is to advance the rural youth of the country and provide easy access to loans with a large subsidy.
5. Pradhan Mantri Mudra Loan Yojana (PMMY)
The Pradhan Mantri Mudra Loan Yojana offers three types of loans: teen loans, youth loans, and large-capital loans. This scheme is available to all the citizens of the country.
• PMMY Interest Rates 2026- PMMY offers interest rates ranging from 8% to 10%, which is much more affordable than other schemes.
• PMMY Loan Amount 2026 – Loans range from ₹50,000 to ₹10 lakh.
• The scheme provides instant loans for small and large projects, making it easy for people across the country to avail loans.
Low Interest Rate Business Loan 2026 Required Documents
• Aadhaar Card for Identity Proof
• PAN Card
• Bank account information required, such as bank statements,
• Business certificate or scheme information,
• Residence certificate
• Caste certificate or special category certificate if belonging to a special category,
How to fill out the 2026 Loan Scheme Form?
Fill out the loan form for the following scheme. Visit your nearest bank to obtain complete loan information from the bank manager. Then, prepare your file, which will be based on your loan application.
Conclusion
A variety of reliable and secure schemes are being implemented to provide low-interest business loans to small and medium-sized entrepreneurs in India. Under these schemes, anyone can easily obtain loan approval. But you must have the required documents and eligibility, the complete details of the following scheme are given above which you can easily read and consider.
If you want to start a small business then Mudra Loan can be the easiest and most beneficial scheme and you can consider other loan schemes which are being run by the Government of India.
FAQs
1 Names of the schemes of Low Interest Rate Business Loan 2026?
MSME Loans by SIDBI (4E, SMILE Scheme, etc.), Pradhan Mantri Mudra Loan Yojana (PMMY), CGTMSE Loan Scheme 2026, Stand Up India Loan 2026.
2. PM Mudra Loan 2026?
Interest: 8%–12% • Loan Amount: ₹50,000 – ₹10 lakh.
3. PMEGP Loan 2026?
Interest: 11%–12% (government provides 15–35% subsidy) • Loan Amount: ₹8 lakh – ₹25 lakh
4. Stand-Up India Loan 2026?
Interest: Approximately 8%–10% • Loan Amount: ₹10 lakh – ₹1 crore
5. CGTMSE Loan (MSME) 2026?
Interest: 7.5%–10% • Loan Amount: ₹10 lakh – ₹2 crore
6. SIDBI MSME Loan 2026?
Interest: 6.5%–9.5% • Loan Amount: ₹25 lakh – several crores
