Dr. Bhimrao Ambedkar Aarthik Kalyan Yojana — 7% Interest Subsidy, MP — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.