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

The scheme provides two main financial benefits: margin money assistance of up to 15% of your sanctioned term loan, capped at ₹12,00,000, and an annual interest subsidy of 5% on the term loan, capped at ₹5,00,000 per year for up to seven years.

Eligible applicants are DPIIT-recognized startups that are officially registered and operating within Madhya Pradesh. They must also have a sanctioned term loan from an approved financial institution for their business operations or setup. The scheme is open to revenue-stage startups registered as private limited companies, LLPs, or partnerships.

Yes, it is a mandatory requirement. Your startup must hold valid recognition from the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, to be considered eligible.

Yes, startups with verified majority ownership by founders belonging to Scheduled Caste (SC), Scheduled Tribe (ST), Other Backward Classes (OBC) categories, or by women entrepreneurs are eligible for an enhanced annual interest subsidy of 6%.

The funding supports a wide range of business operations and setup costs that are typically covered by a conventional term loan. This includes acquiring assets, setting up infrastructure, and managing operational expenses essential for growth.

No, this program provides funding in the form of a grant and an interest subsidy. It is non-dilutive, meaning the Department of MSME, Government of Madhya Pradesh, will not take any equity stake in your startup.

Applications for the Madhya Pradesh Startup Policy 2022: Margin Money & Interest Subsidy Scheme are accepted on a rolling basis, meaning there is no specific deadline and you can apply at any time.

The interest subsidy is disbursed annually, calculated based on the interest paid by the startup on its term loan. The margin money is disbursed according to the terms of the sanctioned loan and the scheme's specific guidelines.

You can find more information and apply for the Madhya Pradesh Startup Policy 2022: Margin Money & Interest Subsidy Scheme through the official portal at startup.mp.gov.in.

Madhya Pradesh Startup Policy 2022: Margin Money & Interest Subsidy Scheme provides ₹47L (up to) as grant. Always confirm the exact amount and any conditions on the official site, as figures can change between cohorts.

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.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.