The Pradhan Mantri Mudra Yojana(PMMY) scheme doesn’t provide subsidies for any loans availed. However, it would be an exception, if the loan proposed by the applicant is linked to a government scheme and given a government capital subsidy. This will be eligible under the PMMY. A subsidy is money provided by the government to businesses. The price of the product made by the business will be reduced. And this will be done for the welfare of society.
These subsidies are provided for social security programs like petroleum and fertilizers. India has one of the largest food subsidy programs in the world. Subsidies are aimed to induce higher consumption or production and there are subsidies for education and health sectors too.