# Do bank loans to start-ups count as priority sector lending in India?

Canonical: https://senseible.earth/answers/startup-loan-priority-sector-50-crore

Yes, up to ₹50 crore per start-up, with start-up as defined by the Ministry of Commerce and Industry. The loan sits in the category that fits the business: agriculture and allied services, MSME if the start-up meets the MSME definition, or the Others category for start-ups outside both.

## Three places a start-up loan can sit

- Agriculture, ancillary services: loans up to ₹50 crore to start-ups engaged in agriculture and allied services (para 9.3).
- MSME: loans up to ₹50 crore to start-ups that conform to the MSME definition (para 10). All bank loans to MSMEs already qualify, so Udyam registration is what the bank will check.
- Others: loans up to ₹50 crore to start-ups in activities other than agriculture or MSME (para 16).

## What defines a start-up here

The Directions use the definition set by the Ministry of Commerce and Industry, not a separate RBI test. Ask your bank which recognition document it wants on file, and keep it with your loan papers.

## MSME thresholds to check

Under the notification of 21 March 2025, a micro enterprise has up to ₹2.5 crore in plant and machinery and ₹10 crore turnover, a small enterprise up to ₹25 crore and ₹100 crore, and a medium enterprise up to ₹125 crore and ₹500 crore.

## What it does for you

A loan that counts towards a bank's priority sector target is one the bank is keen to make. It does not by itself mean a lower rate or a smaller collateral demand.

## What Senseible does here

Senseible gives a climate or hardware start-up a bill-based energy and emissions record that lenders and investors can trace, without a consultant building it by hand.

- [Udyam registration for bank loans](https://senseible.earth/answers/udyam-registration-needed-for-bank-loan)
- [Do all MSME loans count as priority sector](https://senseible.earth/answers/do-all-msme-loans-count-as-priority-sector)
- [Carbon data investors ask start-ups for](https://senseible.earth/answers/startup-carbon-data-for-investor-due-diligence)

Sources: [RBI, Master Directions (Priority Sector Lending, Targets and Classification) Directions, 2025, updated 11 September 2026: paras 9.3, 10 and 16](https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12799), [RBI, Master Direction, Lending to Micro, Small and Medium Enterprises (MSME) Sector, updated 9 February 2026: para 2.1 (MSME definition under S.O. 1364(E), 21 March 2025)](https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=11060)

Last reviewed 2026-10-24.