Mukhya Mantri Swarojgar Yojana — Loans up to ₹10 Lakh for MP Residents — Frequently Asked Questions

A bank loan of anywhere between ₹50,000 and ₹10,00,000 can be sanctioned for your venture. On top of the loan, you may also receive margin money assistance, an interest subsidy, and cover for the loan guarantee fee.

You need to be a permanent resident of Madhya Pradesh, have completed at least Class 5, and be between 18 and 45 years of age. In addition, no member of your family should be an income taxpayer, and you must not be a defaulter at any bank. All of these conditions have to be met.

No. The scheme runs on a rolling basis and accepts applications throughout the year, so there is no closing date to plan around. It has been in operation since 1 August 2014, and you can apply whenever your project is ready.

No. The funding is structured as debt, so you retain full ownership of your venture and give up no stake. What you take on is a repayment obligation to the bank, with a tenure of between six months and seven years.

Besides the loan, beneficiaries get margin money assistance towards the project cost, an interest subsidy that runs for up to seven years, coverage of the loan guarantee fee under CGTMSE/CGFMU, and training to build the skills needed to run the business.

Yes. Women entrepreneurs receive an interest subsidy at 6% per annum instead of the standard 5%. Applicants from BPL, SC, ST, OBC (non-creamy layer), women, minority and disabled categories get margin money at 30% of project cost, up to ₹2,00,000. Liberated nomadic and semi-nomadic tribes can receive 30% of project cost up to ₹3,00,000, and Bhopal gas victim family members get an extra 20%, up to ₹1,00,000.

The repayment period is flexible and depends on your project and the arrangement with your bank. The tenure can be as short as six months or as long as seven years.

Applications are made online through the MSME Madhya Pradesh portal. You first register by entering your name and mobile number, creating a password and filling in the captcha code. Once registered, log in with those credentials, select the department that matches your business interest, and complete and submit the application form.

The application is first screened to confirm you satisfy the eligibility conditions. If it clears that check, it is forwarded to the relevant departments and to a bank, which then appraises the project proposal, its financial viability and your creditworthiness. Once the bank sanctions the loan, the margin money and interest subsidy components are processed.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Mukhya Mantri Swarojgar Yojana — Loans up to ₹10 Lakh for MP Residents, though having it can strengthen your application and unlock other benefits.

Mukhya Mantri Swarojgar Yojana — Loans up to ₹10 Lakh for MP Residents is offered by Department of MSME, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.