5 Most Utilized MSME Government Schemes in 2025

For millions of small business owners, government schemes are the rocket fuel that turns big ambitions into real growth.

From collateral-free loans to export support, India’s MSME ecosystem was quite buzzing in 2025 with new opportunities.

However, as we approach 2026, there’s something that most entrepreneurs still miss out on. Not because they’re ineligible, but because they’re unaware of which scheme fits their business or how to apply for it the right way.

This blog breaks down the most impactful & utilized MSME government schemes in 2025, who they’re for, and how to claim their benefits moving forward in the coming year.
 

• 5 Most Utilized MSME Government Schemes in 2025
• How to avail these MSME Schemes? Using Udyam Registration
• How to Apply for MSME Schemes
• Conclusion

5 Most Utilized MSME Government Schemes in 2025

Ranging from funding to exports and skill development, these MSME government schemes proved the most beneficial in 2025. 

Their benefits offered small businesses the push they needed to go national and global.

Check out the list below:

1. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

At a glance: ₹5.33 lakh crore+ guarantees extended to ~79.5 lakh MSMEs since inception.

Why it matters:
No collateral? No problem. CGTMSE backs your loan so you can focus on scaling and not scrambling for security.

Key Features:

• Collateral-free loans up to ₹10 crore for manufacturing, services & trade sectors.
• Covers term loans and working capital from banks/NBFCs.
• Available for both new and existing MSMEs.

Best for you if:

• You’re an MSME without property or fixed assets for collateral.
• You’re expanding operations or purchasing machinery.
• You have limited or no credit history.

Bullit Tip:
Keep your financials GST- and ITR-compliant. A clean record increases your credit eligibility and faster approval under the CGTMSE scheme.

2. Pradhan Mantri Mudra Yojana (PMMY)

At a glance: 54 crore+ loans worth ₹55,280.18 crore sanctioned as of October 2025.

Why it matters:
A single idea shouldn’t need collateral to come alive. MUDRA Yojna ensures your micro business never stalls for want of cash.

Key Features:

• Collateral-free loans up to ₹20 lakh for non-farm, non-corporate enterprises.
• Categorised as Shishu (up to ₹50,000), Kishor (₹50,000–₹5 lakh), Tarun (₹5–₹20 lakh), and Tarun Plus (above ₹10 lakh and up to ₹20 lakh).
• Focused on traders, service providers, small manufacturers, and street vendors.

Best for you if:

• You’re running a small-scale business like poultry, food processing, or retail.
• You need affordable working capital or startup funds.
• You lack collateral or a formal credit history.

Bullit Tip:
Maintain consistent digital transaction records (UPI, bank transfers). It strengthens your Mudra loan eligibility and future credit upgrades.

3. International Cooperation (IC) Scheme

At a glance: Financial assistance of up to 95% on airfare and exhibition space rent for MSMEs to explore global markets, participate in trade fairs, and forge international collaborations..

Why it matters:
If your product can compete globally, this scheme ensures the world notices.

Key Features:

• Offers marketing development assistance by reimbursing costs for exhibitions, buyer-seller meets, and business delegations.
• Supports capacity building for first-time exporters through certification, testing, and packaging assistance.
• Assists first-time exporters with certification, packaging, and product testing.
• Builds global linkages and capacity for MSMEs entering new markets.

Best for you if:

• You want to expand your MSME’s global reach.
• You’re attending trade fairs or building B2B export partnerships.
• You’re a first-time exporter seeking certification support.

Bullit Tip:
Before applying, get your IEC (Import Export Code) and GST records updated. It smoothens verification under the IC MSME Scheme reimbursements.

4. Entrepreneurship Skill Development Programme (ESDP) Scheme

At a Glance:
In FY 2024-25, over 12,489 programs trained 5.67 lakh entrepreneurs under this initiative, boosting India’s entrepreneurial backbone.

Key Features:

• EDSP focuses on technical, managerial, and business skills for new and existing entrepreneurs.
• Promotes an entrepreneurial mindset to help individuals set up, manage, and expand MSMEs.

Best for you if:

• You want to gain practical, product-oriented skills such as project preparation, market analysis, financing, etc.
• You want self-employment guidance, plus access to information on flagship MSME initiatives like MUDRA and Startup India.

5. Micro & Small Enterprises Cluster Development Programme (MSE-CDP)

At a Glance:
As of December 2023, 580 projects (including 227 Common Facility Centres) were approved under the MSE-CDP scheme, with 307 already completed, strengthening MSME ecosystems across India.

Key Details:

• Provides financial assistance for cluster-based projects, enabling MSMEs to share infrastructure and services.
• Encourages collaboration, innovation, and cost-sharing among enterprises in the same sector.

Why You Should Get This Scheme:

• You want to access testing labs, R&D units, training centres, and waste treatment facilities that are too costly for single units.
• You want skill-building, exposure visits, and marketing support that enhance the entire cluster’s competitiveness.

How to avail these MSME Schemes? Using Udyam Registration

At a Glance: As per the Press Information Bureau, India had 5.7crore active Udyam registrations in June 2025, marking a major leap in MSME formalisation.

Key Details:

• Udyam Registration is the official identity for your MSME, replacing older systems like EM-II and UAM.
• It’s the gateway to access all major government benefits and priority lending programs.

Why You Should Register:

• You want to get formally recognised as an MSME to unlock credit, subsidies, and government tenders.
• You want to access Priority Sector Lending (PSL), collateral-free loans, tax rebates, and GST concessions.

How to Apply for MSME Schemes

Here’s a quick step-by-step roadmap:

1. Register on the Udyam Portal: It’s mandatory for most MSME schemes.
    
2. Identify a Suitable Scheme: Match your business size, sector, and financial needs.
    
3. Prepare Documents: Keep Aadhar, PAN, GST details, and financial statements ready.
    
4. Apply Online: Through official MSME portals or designated government centres.

Conclusion

These five MSME government schemes in 2025 form the backbone of small business growth in India, covering credit, marketing, exports, skills, and cluster development.

By aligning your business goals with the right programs and applying them smartly, you can save costs, scale faster, and stay compliant.

Platforms like Bullit help you register for Udyam, track compliance, and stay updated on every MSME scheme that matters. This way, your business never misses a growth opportunity.

Want to accelerate your business growth and boost sales? Contact us today!