Loans to rural entrepreneurs are provided by banks and Financial Institutions (FIs). Government have several schemes for assisting rural entrepreneurs through interest subvention or capital subsidy to effectively reduce the extent of repayments. These inter-alia include, Prime Minister’s Employment Generation Programme (PMEGP), Credit Linked Capital Subsidy Scheme (CLCSS), Amended Technology Upgradation Fund Scheme (ATUFS), etc.

Government have also taken several measures to increase lending to rural entrepreneurs which inter-alia include, priority sector lending targets to banks for Micro, Small and Medium Enterprises (MSMEs) and weaker sections, Pradhan Mantri Mudra Yojana (PMMY) Scheme, Stand up India Scheme, Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE), Differential Rate of Interest (DRI) Scheme, etc

This information was given by Minister of State for Finance Shri. Santosh Kumar Gangwar  in written reply to a Lok Sabha question.

Loans to rural entrepreneurs supported by government schemes and lending measures to expand credit access and reduce repayment burden. Loans to rural entrepreneurs are provided by banks and financial institutions and supported by government interest subvention and capital subsidy schemes to reduce repayment burdens. Core schemes include employment generation, credit-linked capital subsidy and amended technology upgradation support. Complementary measures to boost lending comprise priority sector lending targets for MSMEs and weaker sections, targeted credit schemes, credit guarantee arrangements, differential rate lending, and initiatives to facilitate small-enterprise finance, collectively aiming to expand credit access and mitigate lender risk.