Mukhya Mantri Krishak Udyami Yojana: ₹50,000–₹10L Loans
A Madhya Pradesh government loan scheme for farmer's children aged 18-45, offering ₹50,000 to ₹10 lakh along with capital cost and interest subsidies.
- Funding amount
- ₹50,000 – ₹10L (debt / loan)
- Funding type
- Debt / Loan
- Provider
- Department of MSME, Government of Madhya Pradesh (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Mukhya Mantri Krishak Udyami Yojana is a debt-based programme run by the Department of Micro, Small and Medium Enterprises, Government of Madhya Pradesh. It is built for the children of farming households who want to set up a business of their own rather than continue depending on agriculture for a living.
Capital is the obstacle the scheme is designed to remove. Support comes in two layers: a business loan of ₹50,000 to ₹10 lakh, and subsidies that pull down the real cost of the project — a subsidy on capital cost and a yearly interest subsidy. The guarantee fee on the loan is also borne under the scheme.
The larger purpose is employment. By helping young people from agricultural families launch their own ventures, the state expects new jobs to be created and a stronger culture of entrepreneurship to take root in rural and semi-rural Madhya Pradesh. The scheme is also framed as a route to self-reliance for households with limited financial means.
Applications are accepted on a rolling basis, so there is no closing date to work against. A founder can apply online through the state MSME portal, or offline by submitting a physical form to the Farmer Welfare Department or the District Trade and Industry Centre.
Highlights
- Loan of ₹50,000 to ₹10 lakh to set up a new business
- Capital cost subsidy going up to ₹18 lakh for BPL applicants
- Interest subsidy of 5% for men and 6% for women, for up to 7 years
- Open to Madhya Pradesh residents aged 18 to 45 with 10th class education
- Parents must not own agricultural land and the applicant must not pay income tax
- Rolling applications, with no fixed deadline
Who can apply
The conditions here are personal rather than business-based, and they are fairly narrow.
- Residency: the applicant has to hold permanent residency in Madhya Pradesh.
- Age: between 18 and 45 years.
- Education: at least 10th class passed.
- Family land: the applicant's parents must not own agricultural land.
- Income tax: the applicant must not be an income taxpayer.
The last two conditions do most of the filtering. Because the parents cannot hold farmland and the applicant cannot have income-tax liability, the scheme is aimed at households with very little financial cushion — the economically weaker farming families the programme was created for.
The scheme does not publish a restricted list of industries or business types in its eligibility criteria. What it funds is the creation of a new enterprise that supports self-employment and adds to the local economy.
Mukhya Mantri Krishak Udyami Yojana: ₹50,000–₹10L Loans 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
Mukhya Mantri Krishak Udyami Yojana: ₹50,000–₹10L Loans 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
Support under the scheme comes in three parts: the loan, a subsidy on capital cost, and a running interest subsidy, with the guarantee fee also taken care of.
The loan
A term loan of ₹50,000 to ₹10 lakh forms the base of the package and is meant to fund the setting up of the new business.
Capital cost subsidy
The rate depends on the applicant's category and on the size of the project.
- General category: 15% of capital cost, up to ₹12 lakh.
- BPL category: 20% of capital cost, up to ₹18 lakh.
- Projects costing below ₹10 lakh, general category: 15%, capped at ₹1 lakh.
- Projects costing below ₹10 lakh, for BPL, SC, ST, OBC, women, minorities and disabled applicants: 30%, capped at ₹2 lakh.
- Liberated nomadic and semi-nomadic tribes: an additional 30%, up to ₹3 lakh.
- Bhopal Gas victim families: an additional 20%, up to ₹1 lakh.
Interest subsidy
Male entrepreneurs get 5% per annum; women entrepreneurs get 6% per annum. This benefit runs for up to 7 years, subject to a ceiling of ₹5 lakh per annum for projects above ₹10 lakh and ₹25,000 per annum for projects below ₹10 lakh.
Guarantee fee
The guarantee fee is covered at the prevailing rate for up to 7 years, which lowers the cost of arranging security against the loan.
Because this is a debt product, the money is repaid rather than exchanged for a share of the business.
About the provider
Mukhya Mantri Krishak Udyami Yojana: ₹50,000–₹10L Loans is offered by Department of MSME, Government of Madhya Pradesh, a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Both routes — the online portal and the offline form — lead to the same place: a document verification desk.
Officers of the Department of Farmer Welfare, or of the District Trade and Industry Centre, examine the application along with the papers filed with it. The purpose of the check is to confirm that the applicant actually matches the scheme's conditions: permanent residency in Madhya Pradesh, the 18 to 45 age band, 10th class education, parents who do not own agricultural land, and no income-tax liability.
When the documents stand up to that scrutiny, the application is approved and the applicant begins receiving the scheme's benefits. Applications that do not clear verification are not approved.
Documents you’ll need
Before you apply to Mukhya Mantri Krishak Udyami Yojana: ₹50,000–₹10L Loans, 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
Mukhya Mantri Krishak Udyami Yojana: ₹50,000–₹10L Loans is best suited for startups in India seeking non-dilutive funding of ₹50,000 – ₹10L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much funding does the Mukhya Mantri Krishak Udyami Yojana offer?
The base support is a loan of ₹50,000 to ₹10 lakh. On top of that comes a capital cost subsidy — 15% of project cost up to ₹12 lakh for the general category and 20% up to ₹18 lakh for BPL applicants — along with an interest subsidy of 5% a year for men and 6% a year for women for up to 7 years. The guarantee fee on the loan is also covered.
Who is eligible to apply?
You must hold permanent residency in Madhya Pradesh, be between 18 and 45 years of age, and have passed at least 10th class. Your parents should not own agricultural land, and you should not be paying income tax. All of these conditions apply together.
Is there a last date to submit the application?
No. The scheme is described as rolling or always open, which means there is no closing date. You can apply whenever your business plan is ready, either through the online MSME portal or by submitting the offline form.
Does the scheme take equity or a share in my business?
No. This is a debt scheme, so the assistance is a loan that is repaid. The loan, along with the subsidy components, is designed to reduce the cost of setting up the business rather than to give the government an ownership stake in it.
Are there extra benefits for SC, ST, OBC, women, minority or disabled applicants?
Yes. For projects costing under ₹10 lakh, the general category gets 15% of capital cost up to ₹1 lakh, while BPL, Scheduled Caste, Scheduled Tribe, Other Backward Class, women, minority and disabled applicants get 30% up to ₹2 lakh. Women also receive a higher interest subsidy of 6% a year instead of 5%.
Are there additional benefits for nomadic tribes and Bhopal Gas victim families?
There are. Liberated nomadic and semi-nomadic tribes can receive an additional 30% of capital cost, capped at ₹3 lakh. Families of Bhopal Gas victims can receive an additional 20%, capped at ₹1 lakh.
How long do the interest subsidy and guarantee fee coverage last?
Both run for a maximum of 7 years. For projects above ₹10 lakh the interest subsidy is capped at ₹5 lakh per annum, and for projects below ₹10 lakh the cap is ₹25,000 per annum.
What kind of business can I start with this funding?
The scheme does not publish a list of restricted industries. Its stated aim is to help beneficiaries establish their own business, generally at micro, small or medium enterprise scale, in a way that supports self-reliance and creates employment.
How do I apply online?
Go to the official MSME Madhya Pradesh portal and open the application link for the Mukhya Mantri Krishak Udyami Yojana. Choose the department that matches your business interest, then register as a new applicant by entering your name, mobile number, password and the captcha code. Once registration is complete, log in with those credentials and fill in and submit the application form.
Can I apply offline instead?
Yes. Download the offline application form or collect it from the Farmer Welfare Department or the District Trade and Industry Centre office. Fill it in completely, attach the supporting documents that are required, and submit the set to the Department of Farmer Welfare or the District Trade and Industry Centre. Officers will verify the form and documents, and after successful verification you can begin receiving the scheme's benefits.
Do I need DPIIT recognition or MSME (Udyam) registration?
The eligibility conditions published for this scheme do not include DPIIT recognition or Udyam/MSME registration as a requirement. The criteria that are spelled out are residency in Madhya Pradesh, age, education, the parents' land ownership position and the applicant's income-tax status.
Who offers Mukhya Mantri Krishak Udyami Yojana: ₹50,000–₹10L Loans?
Mukhya Mantri Krishak Udyami Yojana: ₹50,000–₹10L Loans is offered by Department of MSME, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.
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