Rajasthan Chief Minister Small Industries Promotion Scheme

Scheme Introduction: A Brief Overview

Rajasthan Chief Minister Small Industries Promotion Scheme (Mukhyamantri Laghu Udyog Protsahan Yojana - MLUPY) is a business loan scheme of the Rajasthan government that makes bank loans cheaper for people who want to start a new business or grow an existing one. Under this scheme, the state government pays a part of the interest on your loan, so you repay less to the bank. The Industries and Commerce Department runs it through the District Industries Centre (DIC) in every district. It came into force on 17 December 2019.

Many people in Rajasthan have a good business idea but cannot afford the high interest on bank loans. The state government launched Mukhyamantri Laghu Udyog Protsahan Scheme to solve this problem and to create new jobs across the state. The main objective of the scheme is to give interest-subsidised loans to people from all sections of society, so they can set up manufacturing, service or trade businesses, or expand, diversify and modernise the units they already run. 

The biggest benefit of MLUPY is the interest subsidy of 8%, 6% or 5%, depending on the loan amount. You can get a loan of up to ₹10 crore for a new manufacturing or service unit, and up to ₹1 crore for a trading business or for expanding an existing unit. The government pays the subsidy for up to 5 years, as long as you repay your loan on time. Loans of up to ₹10 lakh come without any collateral, and weavers and artisans with a valid card get 100% interest reimbursement on small loans.

This scheme is open to micro and small enterprises only. Anyone aged 18 years or above can apply, along with Self Help Groups, societies, partnership firms, LLPs and companies. You can apply online through the Rajasthan SSO portal or an e-Mitra Kendra. For loans below ₹10 lakh, the DIC sends your application straight to the bank without any interview. For bigger loans, a district-level committee meets you first. The bank gives the final loan approval, and the DIC later pays the subsidy against your loan account every quarter.

Like the Chief Minister Small Industries Promotion Scheme, the Rajasthan government is also running the Rajasthan Vishwakarma Yuva Udyami Protsahan Yojana and the Rajasthan Mukhyamantri Yuva Swarojgar Yojana to promote enterprises in the state. Vishwakarma Yuva Udyami Protsahan Yojana (loans up to ₹2 crore with up to 8% interest subsidy for youth) and Mukhyamantri Yuva Swarojgar Yojana (interest-free loans up to ₹10 lakh for youth).

Scheme Benefits

The Mukhyamantri Laghu Udyog Protsahan Yojana cuts down the cost of your business loan and gives you support at every step. following benefits are provided under the scheme.

• Interest subsidy: Up to 8% of the interest is paid by the government.
• Full interest waiver on low-rate loans: If the bank's interest rate is equal to or lower than the subsidy rate, you get 100% subsidy.
• Special benefit for weavers: 100% interest reimbursement on loans up to ₹1 lakh for weaver card holders.
• Special benefit for artisans: 100% interest reimbursement on loans up to ₹3 lakh for handicraft and artisan cardholders.
• No collateral: Loans up to ₹10 lakh need no security or guarantee.
• Credit guarantee: Loans above ₹10 lakh can be covered under the CGTMSE guarantee scheme.
• Subsidy for 5 years: You get the subsidy for up to 5 years, even if your loan runs longer.
• Repayment break: Banks can give a break of up to 6 months before repayment starts, and the subsidy continues during this time.
• Land cost included: Up to 25% of the loan used for land also gets the subsidy.
• Free guidance: The DIC helps with project reports, mentoring, and follow-up after the loan.

How Much Interest Subsidy Will You Get?

The subsidy rate depends on how much loan you take:

How Much Loan Can You Get?

The maximum loan amount depends on the type of business:

Eligibility Requirements

You can apply for the Mukhyamantri Laghu Udyog Protsahan Yojana only, if you meet the following conditions.

• The applicant must be 18 years or above.
• The business must be established in Rajasthan.
• Only micro and small enterprises are eligible.
• The enterprise can be engaged in manufacturing, service, or trade activities.
• Individuals, Self Help Groups (SHGs), societies, partnership firms, LLPs and companies can apply.
• Groups, firms, LLPs and companies must be registered as per applicable rules.

Extra Conditions for Self Help Groups and Societies

Groups and societies must also meet these conditions:

• The group must be formed under a Rajasthan government department.
• All members must live in Rajasthan.
• The group must not be a defaulter of any bank or government department.
• The group must be at least one year old and active for at least one more year, with proper records of savings and loans.
• Cooperative societies must be registered with the Cooperative Department, get their accounts audited, and run a production activity.

Who Cannot Apply?

You cannot get the benefit of the scheme in the following cases:

• Someone in your family took a capital or interest subsidy under any central or state scheme in the last 5 years.
• Someone in your family is a defaulter of any bank or financial institution (family means husband, wife and minor children).

Businesses Not Covered Under the Scheme

The Chief Minister Small Industries Promotion Scheme does not give loans for the following activities:

• Products made from meat, liquor or intoxicants
• Explosives
• Transport vehicles costing more than ₹10 lakh on road
• Non-recyclable polythene and harmful plastic products
• Products banned by the central or state government
• Mining and real estate
• Schools, colleges and coaching centres
• Activities run by NGOs and trusts

Required Documents

Keep the following documents ready before you fill the online form for MLUPY.

• Self-assessment form
• Udyog Aadhaar
• Caste Certificate
• Project report (Details of your business plan, cost, and loan need)
• Education Qualification Markshheet/Certificate
• Registration certificate (For SHGs, societies, firms, LLPs and companies)
• Land or building papers (If you own land or a building for the business)
• Passport-size photo

Steps to Apply

The application process of Mukhyamantri Laghu Udyog Protsahan Yojana is fully online. You can apply yourself on the SSO portal or take help from a nearby e-Mitra Kendra. The steps to apply are as follows:

Apply Yourself on the SSO Portal

Follow these steps to apply online on your own:

• Prepare your project report and fill out a printed copy of the blank MLUPY form first.
• Go to the Rajasthan SSO portal.
• Log in with your SSO ID. If you do not have one, register first.
• Open the MLUPY application from the SSO dashboard.
• Enter your personal, business, project cost, and loan details correctly.
• Select the concerned District Industries Centre (DIC) and your preferred financial institution.
• Complete the self-assessment section.
• Upload the required documents as specified in the application.
• Review all the information carefully and submit the application.
• Save your application/reference number for future status tracking.

Apply Through e-Mitra

If you need help with the online form, visit an e-Mitra Kendra:

• Go to your nearest e-Mitra Kendra with your project report, filled paper form, and documents.
• Ask the operator to fill the MLUPY application online.
• Check every detail before final submission.
• Pay the service fee. e-Mitra cannot charge more than ₹30.
• Take the application receipt and keep it safe.

Important: e-Mitra only fills the form and has no role in loan approval. Do not pay any middleman who promises a loan. Report such demands on the 181 helpline.

Free Help Camps at DIC

Every District Industries Centre holds a free help camp every Wednesday. You can visit to learn about the scheme, get help with your form, and prepare a project report without any agent.

What Happens After You Apply?

Your application goes through these steps after submission:

• Loan below ₹10 lakh: The DIC checks your documents and sends the application to the bank. No interview is needed.
• Loan above ₹10 lakh: A district committee led by the DIC General Manager calls you for an interview.
• Interview: The committee checks your experience, skills, business plan, market potential, and repayment ability.
• Bank approval: The bank checks your project and decides whether to approve and release the loan.
• SMS updates: Applicants can receive SMS updates regarding their application, so they should keep their registered mobile number active.

How Will You Receive the Interest Subsidy?

The government does not send the subsidy as cash to your bank account; it adjusts the subsidy against your loan interest.

• Your bank sends an interest claim to the DIC at the end of every quarter.
• The DIC processes the claim and releases the eligible subsidy as per the prescribed procedure.
• The subsidy is subject to the conditions and eligibility requirements prescribed under the scheme.
• For eligible cases, the subsidy is adjusted against the interest liability of the loan. The DIC may verify the status of the business and other prescribed requirements while processing subsidy claims.

Relevant Links

• Mukhyamantri Laghu Udyog Protsahan Yojana Login
• Rajasthan SSO Portal
• Rajasthan Chief Minister Small Industries Promotion Scheme Notification
• Rajasthan Chief Minister Small Industries Promotion Scheme Revised Notification
• Mukhyamantri Laghu Udyog Protsahan Yojana - MLUPY Details
• Guidelines of Mukhyamantri Laghu Udyog Protsahan Yojana

Contact Information

• Rajasthan CM Small Industries Promotion Scheme Nodal Agency Helpline Number: 0141-2227727
• CM Small Industries Promotion Scheme Nodal Agency Helpdesk Email: [email protected]