How to Get a MUDRA or PMEGP Loan for Your Candle Business India 2026

Most Indian candle entrepreneurs do not know that the Government of India has multiple loan and subsidy schemes specifically designed for small artisan manufacturing businesses like handmade candle making. MUDRA loans, PMEGP grants, and Stand-Up India schemes have funded thousands of candle, incense, and home fragrance businesses across India with zero-collateral or low-collateral capital.

If you are planning to invest in equipment, raw material stock, or a small production unit for your candle business, this guide tells you exactly which government schemes are available, how much funding you can access, and what the application process looks like in 2026.

MUDRA Loan - Micro Units Development and Refinance Agency

MUDRA (Micro Units Development and Refinance Agency) provides loans to micro and small businesses without requiring collateral. For candle makers, MUDRA is the most accessible and widely available funding source.

How to Apply for a MUDRA Loan for Your Candle Business

1.    Complete your Udyam MSME registration at udyamregistration.gov.in. This is mandatory for MUDRA applications.

2.    Prepare a simple project report: what your business does, what you will use the loan for, expected revenue, and how you will repay. A 3-5 page document is sufficient for Shishu and Kishor categories.

3.    Visit your nearest nationalized bank (SBI, PNB, Bank of Baroda) or regional rural bank. Submit MUDRA loan application form with: Aadhaar, PAN, Udyam certificate, bank statements (6 months), and project report.

4.    For Shishu loans (up to Rs.50,000), approval can come within 7-15 working days at many banks. For Kishor and Tarun, allow 30-45 days.

5.    Funds are disbursed to your registered business bank account. Begin procurement immediately after receipt.

PMEGP - Prime Minister's Employment Generation Programme

PMEGP is a credit-linked subsidy scheme that provides both a loan AND a government subsidy for setting up a manufacturing or service business. For candle makers, this is more advantageous than a pure MUDRA loan because 15-35% of the project cost is provided as a non-refundable subsidy.

For a woman candle entrepreneur in an urban area: a PMEGP project of Rs.5 lakh costs her only Rs.3.75 lakh in repayable loan (Rs.1.25 lakh is the government subsidy). This is a significant advantage over a pure commercial loan.

How to Apply for PMEGP

6.    Go to kviconline.gov.in (Khadi and Village Industries Commission portal). Create an account and fill the PMEGP e-application.

7.    Submit your project report, identity documents, and business plan. The KVIC/KVIB/DIC office in your district will process the application.

8.    A bank will evaluate your proposal. If approved, the subsidy is placed in a fixed deposit linked to your business account for 3 years (while the loan is active).

9.    After the 3-year lock-in, the subsidy is transferred directly to your loan account, reducing your outstanding balance.

Stand-Up India - For SC/ST and Women Entrepreneurs

Stand-Up India provides loans between Rs.10 lakh and Rs.1 crore specifically to SC/ST and women entrepreneurs setting up greenfield manufacturing or service enterprises. For women setting up a serious candle production unit (with a small workspace, production equipment, and staff), Stand-Up India is the highest-value government scheme available.

Apply through your nearest scheduled commercial bank or at standupmitra.in.

How Your Loan Money Should Be Deployed in a Candle Business

For bulk raw material sourcing after loan approval, contact Karessa Candles for wholesale jar pricing at karessacandles.com/collections/concrete-candle-jars. Pack of 48-96 pricing available on WhatsApp.