Madhya Pradesh Startup Policy 2022: Margin Money & Interest Subsidy Scheme — Frequently Asked Questions

You can get margin money assistance of up to 15% of your term loan, capped at ₹12 lakh, and an annual interest subsidy of 5% on the loan, capped at ₹5 lakh per year for up to seven years. If your startup is majority-owned by SC/ST/OBC/women founders, the interest subsidy is 6% per year.

This is a rolling scheme with no fixed deadline. Applications are accepted on an ongoing basis through the MP Startup portal.

To apply, your startup must be DPIIT-recognized and registered in Madhya Pradesh. You must have a sanctioned term loan from a scheduled bank, NBFC, or approved financial institution. The loan should be in the startup's name for business operations or setup costs.

Yes, DPIIT recognition is mandatory. There is no specific requirement for MSME registration mentioned.

No, this is a subsidy scheme. It provides margin money and interest subsidy, which are non-dilutive. You do not give up any equity.

You need to submit the DPIIT recognition certificate, the loan sanction letter from the financial institution, a loan repayment schedule, bank account details (account number and IFSC code), and, if applying for enhanced benefits, category certificates (SC/ST/OBC) or proof of women majority ownership.

Apply online through the MP Startup portal at startup.mp.gov.in. Upload the required documents and submit the application.

The scheme does not restrict by industry. It is open to any DPIIT-recognized startup in Madhya Pradesh with a qualifying term loan.

Madhya Pradesh Startup Policy 2022: Margin Money & Interest Subsidy Scheme is offered by Department of MSME, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.