Rajasthan Vishwakarma Yuva Udyami Protsahan Yojana: Loan up to ₹2 Crore, 8% Interest Subsidy and ₹5 Lakh Margin Money

Every business starts with an idea, but turning it into reality needs money for machinery, equipment, infrastructure and working capital. To promote self-employment and create more jobs, the Government of Rajasthan runs the Vishwakarma Yuva Udyami Protsahan Yojana. Eligible young entrepreneurs can get a loan of up to ₹2 crore from approved financial institutions, along with interest subsidy and margin money assistance from the state government. The scheme is for new manufacturing and service units as well as existing micro and small enterprises (MSEs) that want to expand, diversify or modernise. Applications are made online through the Rajasthan SSO portal.

Scheme Overview

Benefits of the Scheme

1. Loan support: Financial institutions can provide a loan of up to ₹2 crore to manufacturing and service enterprises. It can be used to set up a new unit or to expand, diversify or modernise an existing one.

2. Interest subsidy: The state government gives interest subsidy based on the sanctioned loan amount.

3. Additional 1% interest subsidy: On loans above ₹1 crore and up to ₹2 crore, these categories get an extra 1%:

• Women entrepreneurs
• Scheduled Caste (SC) entrepreneurs
• Scheduled Tribe (ST) entrepreneurs
• Persons with benchmark disability (40% or more)
• Enterprises set up in rural areas
• Weavers holding a valid Weaver Card issued by the Government of India or the District Industries and Commerce Centre
• Artisans holding a valid Handicraft/Artisan Card

4. Margin money assistance: Eligible beneficiaries get margin money equal to the lower of 25% of the sanctioned loan or ₹5 lakh.

• The amount is kept as a Short-Term Deposit with the lending institution.
• If the enterprise runs successfully for 3 continuous years and the borrower is not declared a defaulter, the amount is adjusted into the loan account after departmental verification.
• If the enterprise is not run for 3 continuous years, the institution returns the full margin money to the Department without interest.

Eligibility Criteria

Who can apply: Individual entrepreneurs, Hindu Undivided Family (HUF), registered society, registered partnership firm, LLP and registered company.

• Age of the applicant must be 18 to 45 years.
• The enterprise must be set up within Rajasthan.
• At the time of application, the enterprise must be a Micro or Small Enterprise (MSE) as per Government of India norms.
• The project must be an eligible manufacturing or service activity.
• The applicant must contribute at least 10% of the total project cost from own resources.
• The loan must be taken only after approval under the scheme's sanction process.
• The applicant must not be a defaulter of any bank or financial institution.
• The enterprise must not have received capital subsidy or interest subsidy under any Central or State scheme for the same purpose in the last 5 years.

Extra conditions for institutional applicants (HUF, society, firm, LLP, company):

• The entity must be legally registered.
• At least 51% ownership must be with persons aged 18 to 45 years.
• A Chartered Accountant (CA) certificate confirming the ownership structure is mandatory.
• For the extra 1% subsidy, all members holding the 51% ownership must belong to an eligible category (woman, SC, ST or PwBD).
• The entity must not be declared a defaulter by any government department or financial institution.

Who is not eligible:

• Applicants declared defaulters by any bank or financial institution.
• Enterprises that already received capital or interest subsidy for the same purpose under any Central/State scheme in the last 5 years.
• Applicants who do not meet the scheme's eligibility conditions.
• Enterprises engaged in activities declared ineligible under the scheme.

Eligible Activities and Use of Loan

The loan can be used for the following purposes:

• Purchase of land (within the prescribed limit)
• Construction of work shed, factory building or commercial building needed for the project
• Purchase and installation of plant and machinery
• Furniture, fixtures and equipment
• Tools and other assets needed for manufacturing or service activity
• Working capital requirement
• Setting up a new manufacturing or service enterprise
• Expansion, diversification and modernisation of existing units

Expansion, Diversification and Modernisation (existing MSEs):

Loan Details

Financial Institutions That Give the Loan

• 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

Eligible loans can also be covered under the CGTMSE guarantee scheme. As per RBI guidelines, collateral-free loans are provided where applicable.

Implementing Agency and Selection Process

Before your loan application goes to the bank, it is examined by the DLTFC, which meets at least once every month.

Documents Required

• Aadhaar card and Jan Aadhaar number
• PAN card and passport size photo
• Rajasthan domicile certificate (where applicable)
• Educational qualification and technical/skill certificates (if applicable)
• Detailed Project Report (DPR) and project cost estimate
• Bank account details
• Udyam Registration Certificate (where applicable)
• Caste certificate (for SC/ST applicants claiming extra benefit)
• Disability certificate (for persons with benchmark disability)
• Weaver Card or Handicraft/Artisan Card (where applicable)
• Self-certified rural area certificate (for the rural area benefit)
• For institutions: registration certificate, CA certificate of 51% ownership (18 to 45 years), and Partnership Deed / LLP Agreement / MoA & AoA / society registration certificate
• Any additional documents asked by the DIC, DLTFC or the lending institution

Activities Not Eligible

• Manufacturing or sale of meat and meat products
• Manufacturing or sale of liquor, alcohol or other intoxicants
• Manufacturing or sale of explosive materials
• Commercial transport vehicles with an on-road price above ₹15 lakh
• Projects where the commercial transport vehicle is not the main part of the project, projects with more than one commercial transport vehicle, or purchase of a vehicle alone without an eligible enterprise project
• Products or activities banned by the Government of India or Rajasthan from time to time
• Agriculture and allied activities: animal husbandry, poultry farming and fisheries
• Mining-related activities
• Real estate-related activities
• Activities run by non-profit organisations such as NGOs and trusts

How to Apply Online (Step by Step)

1. Register on the Rajasthan SSO portal. New users must create an account using Jan Aadhaar ID or a Google account, and enter name, mobile number, email and password. Then log in with your registered mobile number and password.
2. Find the scheme. On the dashboard click "Other Apps", search for "Vishwakarma Yuva Udyami Protsahan Yojana" and open it. Click the "Naya Avedan" (New Application) button at the top right.
3. District and application type. Select your District Industries Centre, application type (Individual or Institutional), enterprise type (Manufacturing or Service), applicant category, sub-category and activity details (what you will do and how many people will get jobs). Enter your PAN and Udyam Registration number.
4. Applicant details. Enter the name of your firm/shop, verify your Aadhaar and Jan Aadhaar (an OTP goes to the mobile linked with Jan Aadhaar). Name and date of birth fill in from Aadhaar. Add category, disability status, gender, qualification and religion, then click "Save Details".
5. Current address. Select district, tehsil and rural/urban area (block, Gram Panchayat and village if rural), enter PIN code, choose Lok Sabha and Vidhan Sabha constituency, and add the permanent address if it is different.
6. Proposed business location. Enter the full address of the place where the unit will be set up, with its contact details and constituencies.
7. Project details. Describe products/services, current employment, annual production capacity and turnover, proposed capacity and additional investment. Enter term loan and working capital separately (total not above ₹2 crore), plus project report, equipment, estimated expenses and use of the loan.
8. Select the bank. Choose your district, view the list of banks and select your preferred bank. Confirm and save.
9. Upload documents and submit. Upload your photo (JPG), Aadhaar copy (both sides), project report, Udyam Aadhaar, PAN and other papers. Tick the declaration and click "Final Submit".
10. Confirmation. You get an Application Number on screen and a confirmation message on your mobile. Your application is reviewed in about 30 days, after which you are informed whether your loan is sanctioned or still in process.

Loan Sanction and Subsidy Process

• Change of bank: Before the loan is sanctioned, you can ask your District Industries and Commerce Centre (DIC) in writing to change the lending bank.
• Sanction: After the DLTFC approves your application, the institution completes the loan process as per RBI guidelines and its own policy. Benefits are available only on the loan amount approved by the DLTFC. Loans sanctioned before DLTFC approval are not eligible.
• First come, first served: Applications and subsidy claims are settled on this basis, subject to the available budget.
• Loan takeover: One-time takeover from one institution to another is allowed. It must be recommended by the DLTFC and approved by the Commissioner, Industries and Commerce. Takeover is not allowed during the moratorium period.
• Claims: After disbursement, the institution claims margin money and interest subsidy through the online portal. Interest subsidy is claimed every quarter.
• Inspection: For loans above ₹50 lakh, the unit is inspected before the first and final subsidy claim to confirm it is operational, the loan account is regular and the scheme conditions are followed.

Important Rules, Penalty and Appeal

• The loan must be used only for the sanctioned purpose.
• Interest subsidy is given only after the unit starts commercial operations and the borrower repays on time.
• No interest subsidy is payable during the NPA (Non-Performing Asset) period. If the account is regularised later, eligible benefits may be released as per the guidelines.
• Penalty: If someone gets the benefit by giving false information or breaking the rules, the full interest subsidy and any margin money benefit will be recovered with 18% penal interest.
• Appeal: If you are not satisfied with the DLTFC decision, you can appeal online through the portal within 30 days. The Commissioner, Industries and Commerce decides the appeal and the decision is final and binding.

Important Links and Contact

Frequently Asked Questions (FAQ)

Note: This information is based on the official scheme guidelines published by the Government of Rajasthan. Rules, limits and portal steps may change, so please read the official guidelines and confirm with your District Industries Centre before applying.