Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP
A Madhya Pradesh government scheme that covers 7% of the annual interest on bank loans of ₹10,000 to ₹1 lakh for Scheduled Caste entrepreneurs, for up to five years, along with a 12-day entrepreneurship training.
- Funding amount
- ₹10,000 – ₹1L (subsidy)
- Funding type
- Subsidy
- Provider
- Tribal Welfare and Scheduled Caste Welfare Department, Government of Madhya Pradesh (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
This Yojana is run by the Tribal Welfare and Scheduled Caste Welfare Department of the Government of Madhya Pradesh. It is built for Scheduled Caste residents of the state who want to earn a living from their own enterprise instead of depending on wage employment.
The design is an interest subsidy, not a cash handout. A beneficiary takes a loan from a bank, and the state absorbs 7% of the annual interest on that borrowing, continuing the support for as long as five years. Projects are sanctioned in the ₹10,000 to ₹1 lakh band, which keeps the scheme pointed at small, first-time ventures rather than large businesses.
Eligible activity covers manufacturing (industry), services and general business. Lending flows through Public Sector banks, Private Sector banks and Regional Rural Banks that are enrolled as Member Lending Institutions (MLIs) with CGTMSE, so the borrowing carries a bank guarantee and lenders carry less risk in saying yes.
Funding is only one half of the offer. Every beneficiary also goes through a 12-day online entrepreneurship development training, which builds the business-management and financial skills a new owner needs to keep the venture alive.
Applications are accepted on a rolling basis, so there is no closing date to race against, and the whole process is offline and handled at the department's office.
Highlights
- 7% annual interest subsidy on a bank loan, provided for up to 5 years
- Project and loan size between ₹10,000 and ₹1 lakh
- Open to Scheduled Caste applicants in Madhya Pradesh aged 18 to 55
- Includes a 12-day online entrepreneurship development training
- Covers manufacturing (industry), services and general business ventures
- Rolling applications — no fixed deadline
Who can apply
Who can apply
- Age: the applicant must be between 18 and 55 years old.
- Community: the scheme is meant for Scheduled Caste beneficiaries in Madhya Pradesh.
- Income tax status: a person who pays income tax is not eligible.
- Repayment record: anyone declared a defaulter by a bank or another financial institution cannot apply.
- Other schemes: you should not already be drawing benefits from any other self-employment programme of a state government or the central government.
How family income is counted
For an unmarried applicant, the family unit is the applicant plus dependent parents. For a married applicant, it covers the applicant, the spouse and dependent children — and a dependent, unmarried child is counted regardless of age.
Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
Interest subsidy
The main benefit is a 7% annual interest subsidy on a bank loan, given for a maximum of five years. It pulls down the repayment load each month and gives a young venture more breathing room to turn profitable.
Loan size
The borrowing tied to the subsidy can range from ₹10,000 to ₹1 lakh, and the same band applies to the project cost.
Entrepreneurship training
Beneficiaries also attend a 12-day online entrepreneurship development training. It covers the practical side of running a business — management, financial literacy and an understanding of the market.
Bank guarantee cover
Loans are extended by Public Sector, Private Sector and Regional Rural Banks registered as Member Lending Institutions (MLIs) with CGTMSE, which makes the borrowing eligible for a bank loan guarantee and eases access to formal credit.
About the provider
Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP is offered by Tribal Welfare and Scheduled Caste Welfare Department, Government of Madhya Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
Documents you’ll need
Before you apply to Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP is best suited for startups in India seeking non-dilutive funding of ₹10,000 – ₹1L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What is the Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana?
It is a self-employment scheme from the Tribal Welfare and Scheduled Caste Welfare Department of the Madhya Pradesh government. Rather than giving out a direct grant, it makes bank borrowing cheaper for Scheduled Caste entrepreneurs by covering 7% of the annual interest on a loan, for a period of up to five years.
How much funding does the scheme provide?
The support is linked to a bank loan. Eligible projects are those between ₹10,000 and ₹1 lakh, and the state pays an interest subsidy of 7% per year on that loan for up to five years. The benefit reaches you as a reduction in your loan interest, along with the training component.
Who is eligible to apply?
Applicants must be Scheduled Caste residents of Madhya Pradesh aged between 18 and 55 years. You must not be an income tax payer, you must not be a defaulter with any bank or financial institution, and you must not currently be receiving benefits from another self-employment scheme of a state or the central government. Family income criteria also apply.
How is 'family' defined for the income criteria?
For an unmarried applicant, the family consists of the applicant and dependent parents. For a married applicant, it covers the applicant, the spouse and dependent children — and a dependent, unmarried child is included irrespective of age.
Is there a last date to submit the application?
No. The scheme runs on a rolling basis and applications are accepted throughout the year at the Scheduled Caste Welfare Department office during working hours, so there is no fixed closing date.
Does the scheme take equity or a stake in my business?
No. This is an interest subsidy on a bank loan that you repay to the lender. The state does not take shares, ownership or a share of profits in your venture, so your business stays entirely yours.
Which kinds of businesses are covered?
Ventures in manufacturing (industry), services and general business are all covered. The project must fall within the ₹10,000 to ₹1 lakh band and be eligible for a bank loan guarantee under CGTMSE through a Member Lending Institution.
Which banks are involved in the scheme?
Loans are routed through Public Sector banks, Private Sector banks and Regional Rural Banks that are registered as Member Lending Institutions (MLIs) with CGTMSE. Because these lenders are MLIs, the loan is eligible for a bank guarantee.
What documents do I need to submit?
You fill the prescribed application form, paste a passport-sized photograph (signed across it, if required) and attach self-attested copies of identity proof such as Aadhaar and PAN, address proof, caste certificate, age proof, income certificate, details of the project you propose, and a declaration that you are not a bank defaulter and not a beneficiary of any other scheme.
How do I apply for the scheme?
The process is offline. Visit the Scheduled Caste Welfare Department during office hours and ask the concerned authority for a hard copy of the prescribed form. Complete it, attach the documents, submit it to the authority, and make sure you collect a receipt or acknowledgement showing the date and time of submission and, ideally, a unique identification number. The official notification is available at https://govtpressmp.nic.in/pdf/extra/2022-05-13-Ex-249.pdf
What else do beneficiaries receive besides the subsidy?
Along with the interest subsidy, beneficiaries get access to a 12-day online entrepreneurship development training. It is meant to sharpen business management skills, financial literacy and market understanding before and while the venture is launched.
Is DPIIT recognition required for Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP, though having it can strengthen your application and unlock other benefits.
Who offers Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP?
Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP is offered by Tribal Welfare and Scheduled Caste Welfare Department, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.
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