Mukhyamantri Aarthik Kalyan Yojana — ₹50,000 Loan for MP SC Entrepreneurs — Frequently Asked Questions

It is a Madhya Pradesh government scheme, in operation since August 2014, that provides credit-linked support to Scheduled Caste families below the poverty line so they can set up a new micro-enterprise. The Department of MSME administers it, funds are allocated by the Scheduled Caste Welfare Department, and the MP State Cooperative Scheduled Caste Finance and Development Corporation Limited in Bhopal acts as the nodal agency.

A project can cost at most ₹50,000. Of that, the government pays margin money equal to 50% of the project cost, capped at ₹15,000, directly to you. The remaining cost is arranged as a bank loan that carries an interest subsidy. You get a six-month moratorium before repayments begin, and the loan runs for five years.

You need to be a native of Madhya Pradesh, belong to the Scheduled Caste category, and be between 18 and 55 years of age on the application date. You must not be a defaulter or insolvent with any nationalized bank, financial institution or cooperative bank, and you cannot be receiving help under another government entrepreneurship or self-employment scheme at the same time. The benefit can be taken only once.

The scheme is targeted at the Below Poverty Line segment of the Scheduled Caste community in Madhya Pradesh. It is designed for people from that group who would otherwise struggle to raise commercial credit for a first venture.

No. The scheme runs on a rolling basis and is always open, so applications are accepted and processed through the year.

No. This is a debt-based scheme. The support comes as margin money plus a bank loan with an interest subsidy, so no shares or ownership stake in your enterprise pass to the government or the lender.

The eligibility conditions listed for this scheme do not include DPIIT recognition or MSME/Udyam registration. What gets checked is your domicile in Madhya Pradesh, your Scheduled Caste status, your age, the absence of any bank default or insolvency, and whether you are already receiving support under another government entrepreneur or self-employment scheme.

Both the industry and service sectors are open under the scheme, and the working area is the whole of Madhya Pradesh — the enterprise has to be established within the state's boundaries. The scheme supports new ventures rather than existing businesses.

Applications are made online. Visit the Madhya Pradesh MSME portal at https://msme.mponline.gov.in/Portal/Services/msme2019/landing.html, choose the Mukhyamantri Aarthik Kalyan Yojana, and select the relevant department scheme. Complete the sign-up with your personal and contact details, then log back in with those credentials to fill the full application form with your business and personal information. Verify every detail before submitting.

Beneficiaries who give wrong or misleading information, or who receive assistance improperly, can face criminal action. If you default on the loan or on interest payments, the assistance already given becomes recoverable as arrears of land revenue, and no further assistance is provided under the scheme.

Mukhyamantri Aarthik Kalyan Yojana — ₹50,000 Loan for MP SC Entrepreneurs is offered by Department of MSME, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.