Chief Minister Rural Path Vendor Loan Scheme — ₹10,000 Interest-Free Loan — Frequently Asked Questions

You can receive a loan of up to ₹10,000. It is sanctioned as working capital or for purchasing low-cost equipment for your business, and it is routed through a bank. The scheme is run by the Panchayat and Rural Development Department of the Government of Madhya Pradesh.

Yes on both counts. No interest is charged on the amount, but it remains a loan, so the principal must be repaid. One of the scheme's stated objectives is to encourage beneficiaries to repay on time and develop a healthy borrowing habit.

You need to be a resident of Madhya Pradesh living in a rural area, and you should be a small trader or vendor from the rural poor class. You must also have a clean record with government loans — anyone who has defaulted on an earlier government loan is not eligible.

There is no fixed deadline. Applications run on a rolling basis, so you can apply at any point during the year.

No. This is a debt scheme — a loan, not an equity investment — so the government does not take any ownership stake or shares in your venture.

The scheme covers the informal trades rural vendors typically run: selling ice cream, fruits, snacks, packaged foods, clothes, small utensils or shoes, and service work such as barbering or tool repair.

Yes. The Entrepreneurship Development Programme (EDP) is delivered by Self Employment Training Institutes (RSETs) and is designed for rural migrant workers and aspiring entrepreneurs. Completing the training is a prerequisite — the interest-free loan becomes available only after you finish it.

Apply online through the official Street Vendor Portal at https://kamgarsetu.mp.gov.in/. Register, verify your mobile number with an OTP and select the "Rural Path Vendor" option, then authenticate your Aadhaar with the OTP sent to your Aadhaar-linked mobile. If your mobile is not linked to Aadhaar, you may need to visit a kiosk for biometric verification. After that, fill in all mandatory fields, upload the required documents in the prescribed format and size, review everything and submit. An SMS confirmation follows.

The scheme does not publish a fixed document list here — the portal asks you to upload the documents it specifies, in the format and size it prescribes. Aadhaar and an active mobile number are needed for the verification steps, and your residency and vendor status will both be checked.

Your identity and residency are verified, your eligibility is assessed, and eligible applicants are sent for EDP training. The bank then takes the final decision on sanctioning the loan after the training is completed. You will get an SMS once the application is submitted, with further communication about training and loan disbursement.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Chief Minister Rural Path Vendor Loan Scheme — ₹10,000 Interest-Free Loan, though having it can strengthen your application and unlock other benefits.

Chief Minister Rural Path Vendor Loan Scheme — ₹10,000 Interest-Free Loan is offered by Panchayat and Rural Development Department, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.