Mukhyamantri Aarthik Kalyan Yojana
By Department of MSME, Government of Madhya Pradesh
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Quick Answer
Madhya Pradesh scheme for Scheduled Caste entrepreneurs below the poverty line: margin money of 50% of project cost, up to ₹15,000, plus a bank loan with interest subsidy.
- Funding amount
- Up to ₹50,000
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Madhya Pradesh
About this loan
Scheduled Caste entrepreneurs in Madhya Pradesh who live below the poverty line can get help to set up a new micro-enterprise. The project cost can be up to ₹50,000. The government pays margin money of 50% of the project cost, up to ₹15,000, directly to you. The scheme also arranges a bank loan with an interest subsidy. Repayment starts after a 6-month moratorium and runs over 5 years. Aid covers low-cost equipment and working capital.
The Department of Industrial Policy and Investment Promotion, Government of Madhya Pradesh, launched it in August 2014. The MP State Cooperative Scheduled Caste Finance and Development Corporation Limited, Bhopal, is the nodal agency. District Endeavour Cooperative Development Committees help at the local level. The Scheduled Caste Welfare Department provides the funds.
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 moreFunder
Tribal Welfare and Scheduled Caste Welfare Department, Government of Madhya PradeshMadhya Pradesh · India
Benefits & Funding
- Amount
- Up to ₹50,000
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
The Mukhyamantri Aarthik Kalyan Yojana provides substantial financial backing for new micro-enterprises. Beneficiaries can secure funding for a project with a maximum cost of ₹50,000. A significant feature is the margin money assistance, covering 50% of the project cost, up to a maximum of ₹15,000, which is directly paid by the government to the beneficiary, thereby reducing the upfront financial burden. Additionally, the scheme facilitates bank loans with an interest subsidy to ensure affordability. New entrepreneurs benefit from an initial moratorium period of 6 months before loan repayments commence, providing a crucial breathing space for stabilizing their ventures. The loan repayment schedule is structured over a manageable 5-year period, designed to support sustainable business operations.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications submitted online are initially screened by the District Endeavour Cooperative Development Committees. These committees review applications for eligibility criteria such as residency, Scheduled Caste status, age, and financial history. Eligible applications are then forwarded to the Managing Director, MP State Cooperative Scheduled Caste Finance and Development Corporation Limited, Bhopal, for final approval. The process involves verifying the project proposal, ensuring it aligns with the scheme's objectives, and assessing the applicant's suitability for establishing a new micro-enterprise. Final selection is based on the comprehensive evaluation of the application and adherence to all scheme guidelines.
Application Process
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Visit Portal
Applicant visits the official MSME Madhya Pradesh 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 primary objective of the Mukhyamantri Aarthik Kalyan Yojana?
The main objective of this scheme is to provide financial assistance, including low-cost equipment and working capital, along with margin money assistance and interest subsidy, to Below Poverty Line (BPL) beneficiaries from Scheduled Castes in Madhya Pradesh, enabling them to establish new industries and businesses and achieve self-employment.
Who is eligible to apply for this scheme?
Applicants must be natives of Madhya Pradesh, belong to the Scheduled Caste category, and be between 18 and 55 years of age. They should not be a defaulter of any bank or financial institution and must not be receiving assistance under any other government entrepreneurship or self-employment scheme. The benefit can only be availed once.
What kind of financial assistance can a beneficiary expect?
The scheme supports projects with a maximum cost of ₹50,000. It provides margin money assistance of up to ₹15,000 (50% of project cost) paid by the government, facilitates bank loans, and offers an interest subsidy. A minimum 6-month moratorium period is provided before loan repayment, which extends over 5 years.
Are there any restrictions on the type of business or location?
The scheme is open to the industry and service business sectors. Its working area covers the entire state of Madhya Pradesh, meaning benefits are specifically for enterprises established within the state's geographical limits.
How does the application process work?
The application process is entirely online. Applicants need to visit the official MSME website of MP Online, select the Mukhyamantri Aarthik Kalyan Yojana, sign up by filling in mandatory details, and then log in to complete and submit the detailed application form after verification.
What happens in case of default or misleading information?
Criminal action can be taken against beneficiaries who provide wrong or misleading information or receive assistance improperly. In case of loan or interest payment default, the previously given assistance becomes recoverable as arrears of land revenue, and no further assistance will be provided under the scheme.
Sources
Data on this page is compiled from official program and provider references.
