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
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