Madhya Pradesh Mukhyamantri Udyam Kranti Yojana

Scheme Introduction: A Brief Overview

The Madhya Pradesh Mukhyamantri Udyam Kranti Yojana (MMUKY) is a flagship self-employment scheme launched by the Government of Madhya Pradesh to encourage entrepreneurship among the state's youth. The scheme aims to support aspiring entrepreneurs who wish to establish their own manufacturing, service, or retail trade enterprises but face difficulties in accessing affordable finance. Through bank-linked financial assistance, the scheme helps eligible applicants start new businesses and become self-reliant while contributing to employment generation and economic growth in the state.

Under the scheme, eligible beneficiaries receive a 3% annual interest subsidy on outstanding bank loans, including both term loans and working capital loans, for a maximum period of seven years. In addition, the State Government reimburses the CGTMSE/NCGTC loan guarantee fee at prevailing rates, significantly reducing the financial burden on new entrepreneurs. These benefits make it easier for individuals to obtain collateral-free business loans and manage the cost of setting up an enterprise.

The revised guidelines have expanded the scheme's reach by allowing projects ranging from ₹50,000 to ₹50 lakh for manufacturing enterprises and ₹50,000 to ₹25 lakh for service and retail trade enterprises. Eligible startups notified under the scheme can also avail its benefits. Applicants must be between 18 and 45 years of age, have passed at least Class 8, and belong to a family with an annual income not exceeding ₹12 lakh. The scheme is available through eligible public sector banks, private sector banks, and regional rural banks that are registered as Member Lending Institutions (MLIs) under CGTMSE.

Beyond financial support, the scheme also includes a 12-day Entrepreneurship Development Programme (EDP) delivered through online modules. This training equips aspiring entrepreneurs with practical knowledge of business management, financial planning, and enterprise operations. The application process is facilitated through participating banks, the SAMAST Portal, and District Trade and Industry Centres (DTICs). After loan sanction and disbursement, eligible subsidy benefits are transferred directly to the beneficiary's loan account through the Direct Benefit Transfer (DBT) system. By combining financial assistance, skill development, and institutional support, the Mukhyamantri Udyam Kranti Yojana plays an important role in promoting entrepreneurship and creating sustainable livelihood opportunities across Madhya Pradesh.

Scheme Benefits

1. Interest Subsidy

Eligible beneficiaries receive:

• Interest subsidy at the rate of 3% per annum.
• Applicable on the outstanding bank loan (Term Loan and Working Capital Loan).
• Available for a maximum period of 7 years, including the moratorium period.
• Subsidy is reimbursed by the government through the prescribed mechanism.
• No subsidy is available during any period when the loan account becomes NPA (Non-Performing Asset).

2. Loan Guarantee Fee Reimbursement

The State Government reimburses:

• CGTMSE/NCGTC Loan Guarantee Fee.
• Reimbursement at prevailing rates.
• Available for a maximum period of 7 years, including moratorium period.

Project Cost Limits

After amendments issued by the Government, the following project limits are applicable:

• Manufacturing Enterprises Minimum Project Cost: ₹50,000
• Maximum Project Cost: ₹50 lakh
• Service Enterprises Minimum Project Cost: ₹50,000
• Maximum Project Cost: ₹25 lakh
• Retail Trade Enterprises Minimum Project Cost: ₹50,000
• Maximum Project Cost: ₹25 lakh

In cases where project cost exceeds the above limits, projects may still be considered by banks. However, government assistance under the scheme will be restricted proportionately up to the eligible loan limit of ₹50 lakh for manufacturing units and ₹25 lakh for service/retail units. Such loans must be fully collateralized by the bank.

Eligibility Requirements

• Age Limit
  • Minimum Age: 18 years
  • Maximum Age: 45 years
• Educational Qualification
  • Must have passed at least 8th Class.
• Income Limit
  • Family annual income should not exceed ₹12 lakh.

Income Tax Related Condition

If the applicant's family is an income tax payer, copies of Income Tax Returns (ITR) for the previous three years may be required with the application.

Other Eligibility Conditions

The applicant:

• Must not be a defaulter of any bank or financial institution.
• Must not be a beneficiary of any other self-employment scheme of the Central or State Government at the time of application.

Eligible Activities

The scheme covers projects in:

• Manufacturing Sector
• Service Sector
• Retail Trade Sector
• Eligible Startups approved under the notified provisions
• Projects eligible for CGTMSE-backed bank finance

Eligible Banks

Financial assistance can be availed through:

• Public Sector Banks
• Private Sector Banks
• Regional Rural Banks

The bank should be a registered Member Lending Institution (MLI) under CGTMSE.

Partnership Firms Eligibility

• Individual proprietorship enterprises.
• Partnership firms established by eligible applicants.
• Other eligible enterprises permitted under the scheme guidelines.

Entrepreneurship Development Training

• 12-day Entrepreneurship Development Programme (EDP)
• Training delivered through online training modules

The training helps applicants understand enterprise management, financial planning and business operations.

Required Documents

• Mobile Number linked with Aadhaar
• PAN Card
• Residence Proof
• Educational Qualification Certificate (Minimum 8th Pass)
• Income Certificate
• Bank Account Details
• Passport-size Photograph
• Business Project Report
• Three years' Income Tax Returns (where applicable)
• Any other documents required by the lending bank

Agricultural Activities Excluded

Activities Not Covered

The scheme does not cover primary agricultural activities such as:

• Animal Husbandry
• Poultry Farming
• Fishery Activities
• Other activities excluded under the scheme guidelines

Steps to Apply

• Step 1: Prepare the Business Proposal
  • The applicant should identify the business activity and prepare a project report.
• Step 2: Approach a Participating Bank
  • Submit the loan proposal and required documents to an eligible bank branch.
• Step 3: Verification by Bank
• The bank verifies:
  • Applicant details
  • Educational qualification
  • Income eligibility
  • KYC documents
  • Project viability
• Step 4: Loan Sanction
  • If the proposal is approved, the bank sanctions the loan.
• Step 5: Loan Disbursement
  • The sanctioned amount is released as per banking norms.
• Step 6: Subsidy Claim
  • The subsidy claim is processed through the SAMAST Portal and submitted to the District Trade and Industries Centre (DTIC).
• Step 7: Approval by DTIC
  • DTIC examines the claim and approves eligible cases.
• Step 8: Direct Benefit Transfer (DBT)
  • After approval, subsidy benefits are transferred directly to the beneficiary's loan account.

Important Conditions

• Benefits are available only for eligible enterprises.
• Subsidy is not admissible during periods when the loan account becomes NPA.
• Banks must complete KYC verification before processing the application.
• Government assistance is provided only after approval of the claim through the prescribed process.
• The scheme is implemented through the SAMAST Portal and participating banks.

Relevant Links

• Madhya Pradesh Mukhyamantri Udyam Kranti Yojana Online Application Form
• Madhya Pradesh Mukhyamantri Udyam Kranti Yojana 2026
• Madhya Pradesh Mukhyamantri Udyam Kranti Yojana Registration
• Madhya Pradesh Mukhyamantri Udyam Kranti Yojana Login
• Madhya Pradesh SAMAST Portal
• Madhya Pradesh Mukhyamantri Udyam Kranti Yojana Application Status
• Department of Micro, Small and Medium Enterprises, Madhya Pradesh

Contact Information

• Directorate of Industries, Madhya Pradesh
• Phone: 07552677988, 07552677966
• Email: [email protected]
• Contact Details of the Department of Micro, Small and Medium Enterprises, Madhya Pradesh.