Debt funding lets Indian startups borrow for working capital, equipment and growth without giving up equity. Options include MUDRA loans, collateral-free lending backed by CGTMSE and the Credit Guarantee Scheme for Startups, SIDBI programmes, Stand-Up India for women and SC/ST founders, PMEGP, and the soft loans many state startup policies offer. Venture debt funds also lend to startups that have already raised equity.