Mukhyamantri Laghu Udyog Protsahan Yojana (MLUPY): Interest Subsidy on Bank Loans up to Rs 10 Crore
MLUPY helps people start or grow a micro or small business in Rajasthan with a bank loan and an interest subsidy of up to 8% for up to 5 years. Individuals, SHGs, societies, firms, LLPs and companies can apply. Here is the full guide.
Scheme at a Glance
| Item | Details |
|---|---|
| Scheme name | Mukhyamantri Laghu Udyog Protsahan Yojana (MLUPY) |
| Launched | 17 December 2019 |
| Benefit | Interest subsidy on a bank business loan, up to 5 years |
| Beneficiaries | Eligible micro and small enterprises in Rajasthan |
| Nodal department | Industries and Commerce Department, Rajasthan, through the District Industries Centre (DIC) |
| Application | Online on the Rajasthan SSO portal or through e-Mitra |
Interest Subsidy Rates
| Loan amount | Interest subsidy |
|---|---|
| Up to Rs 25 lakh | 8% |
| Above Rs 25 lakh up to Rs 5 crore | 6% |
| Above Rs 5 crore up to Rs 10 crore | 5% |
Maximum Loan
| Type of business | Maximum loan |
|---|---|
| New manufacturing enterprise | Rs 10 crore |
| New service enterprise | Rs 10 crore |
| Trading business (wholesale or retail) | Rs 1 crore |
| Expansion, diversification or modernisation of an existing unit | Rs 1 crore |
Key Benefits
- Interest subsidy of up to 8%, for a maximum of 5 years.
- 100% interest reimbursement if the bank rate is equal to or below the subsidy rate, under scheme conditions.
- Weaver card holders: 100% interest reimbursement on loans up to Rs 1 lakh.
- Handicraft and artisan card holders: 100% reimbursement on loans up to Rs 3 lakh.
- No collateral for loans up to Rs 10 lakh.
- Loan can be linked to CGTMSE credit guarantee where needed.
- Up to 6 months relief in repayment, as set by the lender.
- If land is part of the project, land-related loan up to 25% of the eligible loan also gets the subsidy.
- DIC gives guidance and help with the application.
Who Is Eligible
- Applicant aged 18 or above.
- Business located in Rajasthan.
- Only micro and small enterprises, in manufacturing, services or trade.
- Individuals, SHGs, societies, partnership firms, LLPs and companies. Groups, firms, LLPs and companies must be properly registered.
Extra conditions for SHGs and societies
- Group formed under a Rajasthan Government department, and all members live in Rajasthan.
- Not a defaulter to any bank or government department.
- At least one year old and active for one year, with proper savings and loan records.
- Cooperative societies must be registered with the Cooperative Department, have audited accounts and run production activity.
Who Cannot Apply
- Anyone whose family member got capital or interest subsidy under a central or state scheme in the last 5 years.
- Anyone whose family member is a defaulter to a bank or financial institution. Family means husband, wife and minor children.
Activities not covered
- Meat, liquor or intoxicant products, and explosives
- Transport vehicles with on-road price above Rs 10 lakh
- 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
Documents Required
- Self-assessment form
- Udyog Aadhaar
- Caste certificate
- Project report covering the business, project cost and loan need
- Educational qualification marksheets or certificates
- Registration certificate for SHGs, societies, firms, LLPs and companies
- Land or building documents if you own them
- Passport size photo
How to Apply on the SSO Portal
- Prepare your project report and keep the documents ready.
- Go to the Rajasthan SSO portal and log in with your SSO ID. Register first if you do not have one.
- Open the MLUPY application from the SSO dashboard.
- Enter your personal, business, project cost and loan details correctly.
- Select your District Industries Centre (DIC) and the financial institution of your choice.
- Complete the self-assessment section and upload the required documents.
- Check everything and submit. Keep your application or reference number to track status.
How to Apply Through e-Mitra
- Take your project report, documents and details to the nearest e-Mitra centre.
- Ask the operator to fill in the MLUPY online application.
- Check all details before submission.
- Pay the service fee. e-Mitra cannot charge more than Rs 30.
- Collect and keep the receipt.
- e-Mitra only helps fill the form. It has no role in loan approval.
- Do not pay any middleman who promises a loan. Report such demands on 181.
- DICs hold free guidance camps on Wednesdays, according to the official portal.
What Happens After You Apply
- Loan below Rs 10 lakh: the DIC checks the documents and forwards the application to the bank. No interview is needed.
- Loan above Rs 10 lakh: a district level committee may call you for evaluation of the application and project.
- Bank decision: the bank examines the project and decides whether to sanction and release the loan. The final decision is the bank's.
- SMS updates: keep the mobile number in your application active.
How You Get the Interest Subsidy
- The subsidy is not paid to you in cash. In eligible cases it is adjusted against your loan interest.
- The lender sends the interest subsidy claim to the DIC at the end of each quarter.
- The DIC verifies and processes the claim and may check the business status and other requirements.
- The subsidy depends on meeting the scheme's eligibility and conditions.
Related Schemes
- Rajasthan Vishwakarma Yuva Udyami Protsahan Yojana: loans up to Rs 2 crore for youth with up to 8% interest subsidy.
- Mukhyamantri Yuva Swarozgar Yojana: interest-free loans up to Rs 10 lakh for youth.
Important Government Links
The scheme notification, amended notification and guidelines are available on the official portals.
Helpline and Contact
Nodal agency helpline0141-2227727
Helpdesk emailindraj@rajasthan.gov.in
To report a middleman demanding money, call 181.
Frequently Asked Questions
How much subsidy can I get?
- 8% up to Rs 25 lakh, 6% up to Rs 5 crore and 5% up to Rs 10 crore of loan, for up to 5 years.
Is collateral needed?
- Not for loans up to Rs 10 lakh, as per the scheme provisions.
Who approves the loan?
- The bank or financial institution. The scheme only gives the interest subsidy.
Can I apply offline?
- Applications are online, on the SSO portal or through e-Mitra.
Important Points
- Scheme rules, rates and limits can change. Check the latest notification before applying.
- Emitrawala.com is not a government website. This page is for information only.
- Loan approval is decided only by the bank. Nobody can guarantee a loan.
Need Help?
If you need help with forms, documents, SSO or Jan Aadhaar, contact Emitrawala.com. Our team will be happy to help you.
