Mukhya Mantri Yuva Udyami Yojana — Loans up to ₹2 Crore for MP Youth — Frequently Asked Questions

It is a financing scheme from the Department of MSME, Government of Madhya Pradesh, that helps young residents of the state set up new industries. It has been running since 1 August 2014 and combines a term loan, margin money assistance and an interest subsidy rather than offering only a single form of funding.

Loans range from ₹10,00,000 to ₹2,00,00,000. On top of the loan, you can receive margin money assistance of 15% of the capital cost (up to ₹12,00,000) if you belong to the general category, or 20% (up to ₹18,00,000) if you are a BPL applicant.

You need to be a permanent resident of Madhya Pradesh, have passed Class 10th, and be between 18 and 40 years of age. The benefit can be taken only once, so a second application from the same person is not possible.

No. The eligibility conditions listed for this scheme are residency in Madhya Pradesh, Class 10th qualification, and an age between 18 and 40 years. DPIIT recognition and MSME registration do not appear among the requirements.

You receive an annual interest subsidy of 5% on the capital cost, payable for up to 7 years. Women entrepreneurs get a higher rate of 6%. In either case the subsidy is capped at ₹5,00,000 per year. The scheme also covers the guarantee fee at the prevailing rate for up to 7 years.

It is a debt-based scheme. The support comes as a term loan together with margin money assistance, an interest subsidy and a guarantee fee payment — so it does not dilute your ownership. No equity stake is involved.

No. The benefit of the scheme can be availed only once by an applicant, so plan your project application accordingly.

No fixed deadline has been specified. The scheme operates on a rolling basis, with applications accepted through both the online MSME portal and the offline route at the District Trade and Industry Center.

You can apply online at msme.mponline.gov.in — register with your name, mobile number and password, log in, and complete the scheme application. For the offline route, fill the form available on the mpmsme.gov.in portal or collect it from the District Trade and Industry Center, attach the supporting documents listed in the form, and include a General Project Report (GPR) for your proposed activity. The center registers every application it receives.

Within 15 days of submission, the applicant is informed whether the application is complete or incomplete. If it is incomplete, that intimation tells you what still needs to be sorted out before the review can move ahead.

Mukhya Mantri Yuva Udyami Yojana — Loans up to ₹2 Crore for MP Youth is offered by Department of MSME, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.