Rajasthan Vishwakarma Yuva Udyami Protsahan Yojana

Scheme Introduction: A Brief Overview

Building a successful business starts with a great idea, but turning that idea into reality often requires financial support. For many aspiring entrepreneurs, arranging funds for machinery, equipment, infrastructure, and working capital becomes one of the biggest obstacles. Without affordable financing, even promising business ideas can remain unrealized. To encourage self-employment and create more employment opportunities across Rajasthan, the Government of Rajasthan has launched the Vishwakarma Yuva Udyami Protsahan Yojana. Under this scheme, eligible young entrepreneurs can avail loans of up to ₹2 crore through approved financial institutions along with margin money assistance and interest subsidy from the State Government. The scheme not only supports individuals who wish to establish a new manufacturing or service enterprise but also helps existing Micro and Small Enterprises (MSEs) expand, diversify, or modernize their businesses.

Unlike a regular business loan, this scheme reduces the financial burden on entrepreneurs by providing interest subsidy of up to 8%, margin money assistance of up to ₹5 lakh, and an additional 1% interest subsidy for eligible categories such as women entrepreneurs, SC/ST entrepreneurs, benchmark persons with disabilities, enterprises established in rural areas, eligible weavers, and registered artisans. The scheme also promotes sustainable business growth by enabling entrepreneurs to access other Central and State Government schemes after successfully establishing their enterprises.

The scheme follows a transparent online application and approval process through the prescribed government portal, making it easier for eligible entrepreneurs to apply and access financial assistance.

If you're planning to start a business or expand an existing enterprise, this guide covers everything you need to know about the Vishwakarma Yuva Udyami Protsahan Yojana, including its benefits, eligibility, loan amount, interest subsidy, required documents, and application process. You may also find other Government entrepreneurship schemes useful, such as the Mukhyamantri Yuva Swarozgar Yojana, Gaon Gwala Yojana, Mukhyamantri Nari Shakti Udyam Protsahan Yojana, and Dr. Bhimrao Ambedkar Rajasthan Dalit, Adivasi Udyam Protsahan Yojana, which provide financial assistance and support to different categories of entrepreneurs across the state.

Scheme Benefits

The scheme offers multiple financial benefits to eligible entrepreneurs.

Loan Assistance

• Financial institutions can provide loans of up to ₹2 crore for manufacturing and service sector enterprises.
• The loan can be used for establishing a new enterprise or expanding, diversifying, or modernizing an existing enterprise.

Interest Subsidy

The Rajasthan Government provides interest subsidy based on the sanctioned loan amount.

If the lending institution charges an interest rate equal to or lower than the applicable subsidy rate, the beneficiary will receive 100% interest subsidy.

Additional 1% Interest Subsidy

An additional 1% interest subsidy is available for loans above ₹1 crore and up to ₹2 crore to:

• Women entrepreneurs
• SC entrepreneurs
• ST entrepreneurs
• Persons with Benchmark Disabilities (PwBD) (more than 40%)
• Enterprises established in rural areas
• Weavers holding a valid Weaver Card issued by the Government of India or District Industries & Commerce Centre
• Artisans holding a valid Handicraft/Artisan Card

For institutional applicants, this additional benefit is available only when all members forming the required 51% ownership belong to the eligible category.

Margin Money Assistance

Eligible beneficiaries can receive:

• 25% of the sanctioned loan amount, or
• ₹5 lakh, (whichever is lower).

The margin money assistance is deposited as a Short-Term Deposit with the lending financial institution. After the enterprise has been successfully operated for three continuous years and the borrower is not declared a defaulter, the amount is adjusted in the beneficiary's loan account after departmental verification.

If the enterprise is not operated continuously for three years, the financial institution will return the entire margin money assistance to the Department of Industries & Commerce without interest.

Eligibility Criteria

To apply for the Rajasthan Vishwakarma Yuva Udyami Protsahan Yojana, applicants must meet the eligibility conditions prescribed by the Government of Rajasthan.

Eligible Applicants

The following applicants are eligible to apply under the scheme:

• Individual entrepreneurs.
• Hindu Undivided Families (HUFs).
• Registered Societies.
• Registered Partnership Firms.
• Limited Liability Partnerships (LLPs).
• Registered Companies.

Applicants must also fulfil the following conditions:

• The applicant should be 18 to 45 years of age.
• The proposed enterprise must be established within Rajasthan.
• The enterprise must qualify as a Micro or Small Enterprise (MSE) as per the Government of India guidelines at the time of application.
• The project should relate to an eligible manufacturing or service activity.
• The applicant must contribute at least 10% of the total project cost from their own resources.
• The loan must be obtained only after approval under the prescribed scheme process.
• The applicant should not be a defaulter of any bank or financial institution.
• The enterprise should not have received capital subsidy or interest subsidy for the same purpose under any Central or
• State Government scheme during the last five years.

Additional Eligibility for Institutional Applicants

Institutional applicants such as HUFs, Societies, Partnership Firms, LLPs, and Companies must also meet the following conditions:

• The institution must be legally registered.
• At least 51% ownership of the institution must be held by persons aged 18 to 45 years.
• A Chartered Accountant (CA) Certificate confirming the ownership pattern is mandatory.
• To claim the additional 1% interest subsidy, all members forming the required 51% ownership must belong to the eligible category, such as Women, SC, ST, or Persons with Benchmark Disabilities, as applicable under the scheme.
• The institution should not have been declared a defaulter by any Government department or financial institution

Who is Not Eligible?

The following applicants are not eligible under the scheme:

• Applicants who are declared as defaulters by any bank or financial institution.
• Enterprises that have already received capital subsidy or interest subsidy for the same purpose under any Central or
• State Government scheme during the previous five years.
• Applicants who do not fulfil the prescribed eligibility conditions of the scheme.
• Enterprises engaged in activities that are specifically declared ineligible under the scheme.

Eligible Activities under the Scheme

Financial assistance under the Vishwakarma Yuva Udyami Protsahan Yojana is available for establishing new manufacturing and service enterprises as well as for expanding, diversifying, or modernizing existing Micro and Small Enterprises (MSEs). Eligible enterprises must be established within the State of Rajasthan.

The loan can be utilized for the following purposes:

• Purchase of land (subject to the prescribed limit).
• Construction of work shed, factory building, or commercial building required for the project.
• Purchase and installation of plant and machinery.
• Purchase of furniture, fixtures, and equipment.
• Purchase of tools and other assets required for manufacturing or service activities.
• Working capital requirements.
• Establishment of a new manufacturing enterprise.
• Establishment of a new service enterprise.
• Expansion of an existing enterprise.
• Diversification of business activities.
• Modernization of existing units.
• Expansion, Diversification and Modernization

Existing enterprises can also avail benefits under the scheme for business growth.

Expansion

For manufacturing units:

• Existing investment must increase by at least 25%.
• Production capacity must increase by at least 20%.
• For projects up to ₹25 lakh, production capacity can be self-certified.
• For projects above ₹25 lakh, the production capacity certificate must be issued by a Chartered Accountant (CA) or Chartered Engineer.

For service sector enterprises:

• Existing investment must increase by at least 25%.
• Diversification and Modernization

For diversification or modernization projects:

• Existing investment must increase by at least 25%.

Expansion, diversification, or modernization will be considered eligible only when the enterprise obtains additional loan assistance from the financial institution for the investment proposed in the approved project report.

Interest subsidy will be available only on the additional term loan and eligible working capital sanctioned for the expanded, diversified, or modernized project.

Loan Details

• Loan Tenure: The maximum repayment period for the loan shall be up to 7 years.
• Interest Subsidy Duration: Interest subsidy shall be payable for a maximum period of 5 years from the commencement of commercial production/operations, even if the loan tenure extends beyond 5 years.
• Moratorium Period: A moratorium period of up to 6 months may be allowed on loan repayment, as decided by the financial institution based on the nature of the enterprise, its profitability, and the borrower's repayment capacity. Interest subsidy remains payable during the moratorium period if interest is paid regularly.

Interest Subsidy Eligibility

• Interest subsidy will be available only on the loan amount sanctioned for the first time based on the project report submitted by the applicant.
• If the financial institution subsequently enhances the loan amount, the increased portion will not be eligible for interest subsidy under the scheme.

Lending Financial Institutions

Loans under the scheme can be availed from the following financial institutions:

• Nationalised Commercial Banks
• Scheduled Private Sector Banks
• Small Finance Banks
• Regional Rural Banks (RRBs)
• Rajasthan Financial Corporation (RFC)
• SIDBI
• Urban Cooperative Banks
• Central Cooperative Banks

Note: Eligible loans may also be covered under the CGTMSE guarantee scheme. Collateral-free loans are available wherever applicable as per RBI guidelines.

Implementing Agency

District Level Task Force Committee (DLTFC)

Before your loan application is sent to the bank, it is reviewed by the District Level Task Force Committee (DLTFC).

Loan Amount Selection Process

• Up to ₹10 lakh Application and documents are verified.
• Above ₹10 lakh Application is verified, followed by an interview to assess the business proposal.

Note: Only applications approved by the DLTFC are forwarded to the bank for loan sanction.

Meetings

• The DLTFC shall hold at least one meeting every month.

Note: Only applications recommended by the DLTFC are forwarded online to the concerned financial institution for loan sanction and disbursement.

Required Documents

Applicants may be required to submit the following documents while applying under the scheme:

• Aadhaar Card.
• Jan Aadhaar Number
• PAN Card.
• Passport-size Photograph.
• Rajasthan Domicile Certificate (where applicable).
• Educational Qualification Certificates (if applicable).
• Technical Qualification or Skill Certificate (if applicable).
• Detailed Project Report (DPR).
• Project Cost Estimate.
• Bank Account Details.
• Udyam Registration Certificate (where applicable).
• Caste Certificate (for SC/ST applicants claiming additional benefits).
• Disability Certificate for Persons with Benchmark Disabilities.
• Weaver Card issued by the Government of India or District Industries & Commerce Centre (where applicable).
• Handicraft/Artisan Card (where applicable).
• Self-certified Rural Area Certificate (for enterprises claiming rural area benefit).
• Registration Certificate of HUF, Society, Partnership Firm, LLP, or Company (for institutional applicants).
• CA Certificate confirming that at least 51% ownership is held by persons aged 18–45 years (for institutional applicants).
• Partnership Deed, LLP Agreement, Memorandum & Articles of Association, Society Registration Certificate, or other relevant constitutional documents.
• Any additional documents required by the District Industries & Commerce Centre, DLTFC, or the lending financial institution during processing.

Ineligible Activities

The following activities are not eligible for financial assistance under the Vishwakarma Yuva Udyami Protsahan Yojana:

• Manufacturing or sale of meat and meat products.
• Manufacturing or sale of liquor, alcohol, or intoxicating products.
• Manufacturing or sale of explosive materials.
• Commercial transport vehicles having an on-road price exceeding ₹15 lakh.
• Commercial transport vehicle projects where the vehicle is not a part of the main project.
• Projects involving more than one commercial transport vehicle.
• Purchase of only a commercial transport vehicle without any eligible enterprise project.
• Products or activities prohibited by the Central Government or the Government of Rajasthan from time to time.
• Agriculture and allied activities, including:
• Animal Husbandry
• Poultry Farming
• Fisheries
• Mining activities.
• Real estate-related activities. Activities carried out by non-profit organisations such as NGOs and Trusts.

Steps to Apply

• Step 1: Register on the Rajasthan SSO Portal

• Go to the official Rajasthan SSO (Single Sign-On) portal
• New users need to create an account first to register, which can be done using either a Jan Aadhaar ID or a Google account
• During sign-up, you'll be asked to enter basic details such as name, number, email id and password.
• Once registration is complete, log in using your registered mobile number and password
• Complete the registration on the portal, then log in using your registered mobile number and password.
• Step 2: Log In
• After logging in, you will be redirected to the Dashboard. Click on the "Other Apps" option.
• A list of available schemes will appear.

• Use the search bar to search for "Vishwakarma Yuva Udyami Protsahan Yojana", or find the scheme manually from the list and click on it.

• 

  • Once the scheme page opens, click on the "Naya Avedan" (New Application) button available in the top-right corner.

  

  • The application form for the Vishwakarma Yuva Udyami Protsahan Yojana will open on your screen. You can now start filling in the required details.
• Step 3: Select District and Application Type
  • Choose your District Industries Centre (e.g., Rajsamand, Jaipur, etc.)
  • Select application type: Individual or Institutional
  • Select enterprise type: Manufacturing or Service
  • Select applicant category
  • Fill in enterprise sub-category and activity details (what work you'll do, how many people will get employment)
  • Enter PAN number and Udyam Registration number
• Step 4: Applicant Details
  • Enter name of establishment/shop
  • Enter Aadhaar number and verify it
  • Enter Jan Aadhaar number and complete authentication (OTP will be sent to the mobile number linked with Jan Aadhaar — this is mandatory)
  • Name and date of birth will auto-fill from Aadhaar
  • Fill in category (SC/ST/OBC etc.), disability status (if any), gender, educational qualification, and religion Click "Save Details" to proceed
• Step 5: Current Address
  • Select district, tehsil, and rural/urban area
  • If rural, select block and gram panchayat, and enter village name
  • Postal address will auto-fill; enter your pin code
  • Mobile number and email ID will be shown
  • Select your Lok Sabha and Vidhan Sabha (assembly) constituency
  • If permanent address is different from current address, enter it separately (otherwise it auto-fills if same)
  • Save and proceed
• Step 6: Proposed Business Location
  • Enter the complete address of the place where you will run your business (tehsil, village, block, etc.)
  • Enter mobile number, email ID, and select assembly/parliamentary constituency for this location
  • Save and proceed
• Step 7: Proposed Project Details
  • Describe your products/services in detail
  • Enter current employment (if any people already working), annual production capacity and turnover (in rupees)
  • Enter proposed (future) production capacity and additional investment required
  • Specify amount needed as Term Loan and Working Capital Loan separately (total loan amount cannot exceed ₹2 crore)
  • Fill in the complete project report, what equipment/materials you'll purchase, expected expenses, and how the loan amount will be utilized
  • Save and proceed
• Step 8: Select Bank/Financial Institution
  • Select your district
  • A list of available banks in that district will appear
  • Choose your preferred nearby bank
  • Confirm and save
• Step 9: Upload Documents and Final Submission
  • Upload applicant's photo (JPG format), Aadhaar card copy (both sides), Project Report
  • Upload other documents: Udyam Aadhaar, PAN Card, etc.
  • Tick the declaration checkbox
  • Click "Final Submit"
• Step 10: Confirmation
  • On successful submission, you'll receive an on-screen confirmation along with an application number
  • A confirmation message will also be sent to your registered mobile number.
  • The application will be reviewed within approximately 30 days, after which you'll be informed whether your loan is approved or the file is being processed further.

Loan Approval & Subsidy Process

Bank Change (Before Loan Sanction)

Before the loan is sanctioned, applicants can request a change of the lending bank by submitting a written request to the concerned District Industries & Commerce Centre (DIC).

Loan Approval

After the District Level Task Force Committee (DLTFC) approves the application, the concerned financial institution processes the loan as per RBI guidelines and its internal policies.

• Scheme benefits are available only on the loan amount approved by the DLTFC.
• Loans sanctioned before DLTFC approval are not eligible under the scheme.
• Applications and subsidy claims are processed on a First Come, First Served basis, subject to budget availability.

Loan Takeover

A loan takeover from one financial institution to another is permitted only once under the scheme.

• The proposal must be recommended by the DLTFC and approved by the Commissioner, Industries & Commerce.
• Loan takeover is not permitted during the Moratorium Period.

Margin Money & Interest Subsidy Claim

After loan disbursement, the financial institution submits the Margin Money and Interest Subsidy claims through the online portal.

• Margin Money Assistance is kept as a Short-Term Deposit and adjusted in the borrower's loan account after the enterprise operates successfully for 3 years, departmental verification is completed, and the borrower is not a defaulter. Interest Subsidy is claimed every quarter.
• For loans above ₹50 lakh, the enterprise is inspected before the first and final subsidy claims to verify that the enterprise is operational, the loan account is regular, and all scheme conditions are fulfilled.

Important Conditions

• The loan must be used only for the approved purpose.
• Interest subsidy is available only after the enterprise starts commercial operations and the borrower repays the loan on time.
• No subsidy is payable during the NPA (Non-Performing Asset) period. However, if the loan account is regularized later, eligible benefits may be released as per the scheme guidelines.
• The scheme is implemented and monitored by the Department of Industries & Commerce, Government of Rajasthan.

Penalty Provisions

If a beneficiary receives scheme benefits by providing incorrect information or violating the scheme conditions:

• The entire Interest Subsidy will be recovered along with 18% penal interest.
• Any benefit received under Margin Money Assistance will also be recovered along with 18% penal interest.

Appeal Process

• Applicants who are not satisfied with the decision of the District Level Task Force Committee (DLTFC) can file an appeal through the online portal within 30 days.
• The appeal will be decided by the Commissioner, Industries & Commerce, whose decision will be final and binding

Relevant Links

• Official portal of Rajasthan Single Single Sign On
• Offcial Website of Department of Industries & Commerce, Government of Rajasthan
• The Guidelines of the Rajasthan Vishwakarma Yuva Udyami Protsahan Yojana
• Official oder of the Rajasthan Vishwakarma Yuva Udyami Protsahan Yojana

Contact Information

Department of Industries & Commerce Government of Rajasthan

• Office Address: Government of Rajasthan, Jaipur – 302005
• Phone: 01412940327
• Email: [email protected]