Mukhya Mantri Swarojgar Yojana
By Department of MSME, Government of Madhya Pradesh
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Quick Answer
Madhya Pradesh scheme offering bank loans up to ₹10 lakh, plus margin money, interest subsidy and training, to citizens starting a self-employment venture.
- Funding amount
- ₹50,000 – ₹10L
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Madhya Pradesh
About this loan
Citizens of Madhya Pradesh can get a bank loan of ₹50,000 to ₹10,00,000 to start a self-employment venture, with margin money, an interest subsidy, a loan guarantee facility and training. The Department of Micro, Small & Medium Enterprises, Government of Madhya Pradesh, launched the scheme on August 1, 2014. Repayment runs up to 7 years.
Margin money is 15% of the project cost (maximum ₹1,00,000) for the general category. It is 30% (maximum ₹2,00,000) for BPL, SC, ST, OBC (excluding creamy layer), women, minority and disabled applicants. Liberated nomadic and semi-nomadic tribes get 30% (maximum ₹3,00,000), and Bhopal gas victim family members get an additional 20% (maximum ₹1,00,000).
The interest subsidy is 5% per annum on the project cost, 6% for women, for up to 7 years, capped at ₹25,000 per annum. The scheme also covers loan guarantee fees (CGTMSE/CGFMU) for up to 7 years at prevailing rates.
You must be a permanent resident of Madhya Pradesh, aged 18 to 45, and have passed the 5th class. You must not be a bank defaulter, and your family must not be an income taxpayer.
Eligibility
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Grant providers
The Department of Micro, Small and Medium Enterprises of the Government of Madhya Pradesh runs the state's startup policy and the assistance that comes with it. The Madhya Pradesh Startup Centre (MPSC) is the nodal agency for implementation, and MPLUN disburses the sanctioned…
Learn moreBenefits & Funding
- Amount
- ₹50,000 – ₹10L
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
The Mukhya Mantri Swarojgar Yojana provides financial assistance through bank loans ranging from ₹50,000 to ₹10,00,000 to help citizens establish their own businesses. Beneficiaries receive margin money assistance, which covers a portion of the project cost:
- 15% of the project cost (maximum ₹1,00,000) for the general category.
- 30% of the project cost (maximum ₹2,00,000) for Below Poverty Line (BPL), Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC) (excluding creamy layer), Women, Minority, and Disabled applicants.
- Special provisions include 30% of project cost (maximum ₹3,00,000) for liberated nomadic and semi-nomadic tribes, and an additional 20% (maximum ₹1,00,000) for Bhopal gas victim family members.
An interest subsidy is provided at 5% per annum on the project cost (6% per annum for women entrepreneurs) for a maximum period of 7 years, capped at ₹25,000 per annum. The scheme also covers loan guarantee fees (CGTMSE/CGFMU) for up to 7 years at prevailing rates, reducing risk for entrepreneurs. Additionally, beneficiaries receive training to equip them with necessary entrepreneurial skills.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications submitted online are typically subject to an initial screening to verify eligibility criteria. Eligible applications are then forwarded to relevant departments and financial institutions (banks) for further assessment. The bank evaluates the project proposal, financial viability, and the applicant's creditworthiness. Once the bank approves the loan, the government's margin money and interest subsidy components are processed. The selection essentially involves successful validation of application details and final approval from the financing bank.
Application Process
- 1
Visit Website
Applicant visits the official MSME MP portal.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the maximum loan amount I can avail under the Mukhya Mantri Swarojgar Yojana?
Under this scheme, beneficiaries can avail loans ranging from ₹50,000 up to a maximum of ₹10,00,000 for establishing their self-employment ventures.
Who is eligible to apply for the Mukhya Mantri Swarojgar Yojana?
Applicants must be permanent residents of Madhya Pradesh, have passed the 5th class, be between 18 and 45 years of age, not have family members who are income taxpayers, and not be defaulters of any bank.
Are there special benefits for women or other specific categories?
Yes, women entrepreneurs receive an interest subsidy at 6% per annum (compared to 5% for others). Additionally, categories like BPL, SC, ST, OBC (non-creamy layer), Women, Minority, and Disabled applicants receive a higher margin money assistance of 30% of project cost (up to ₹2,00,000).
What kind of support is provided in addition to the loan?
Apart from the loan, the scheme offers margin money assistance, an interest subsidy for up to 7 years, a loan guarantee, and essential training to help beneficiaries successfully run their businesses.
How do I apply for the Mukhya Mantri Swarojgar Yojana?
Applications can be submitted online by visiting the official MSME Madhya Pradesh website. You will need to register on the portal, choose the relevant department, and then proceed with filling out the application form after logging in.
What is the repayment period for the loan?
Beneficiaries are provided a flexible repayment period for the loan, ranging from a minimum of 6 months to a maximum of 7 years, depending on the project and agreement with the bank.
Sources
Data on this page is compiled from official program and provider references.
