About the Scheme

The Rajasthan Government's Mukhyamantri Yuva Swarojgar Yojana helps native youth start or grow their own enterprise. Banks and financial institutions give the loan, while the state pays the interest, provides margin money and reimburses the CGTMSE fee. The aim is to set up micro enterprises and give self-employment to 1 lakh youth.

The scheme covers new and existing units in manufacturing, services and trade, for both individuals and institutions (HUF, society, partnership firm, LLP, company, self-help group). It is effective from the notification date until 31 March 2029.

Loan Limit and Margin Money

Interest subsidy is paid on the loan amount first sanctioned as per your project report. Any later increase in the loan does not qualify.

Key Benefits

• 100% interest subsidy for up to 5 years from the first loan disbursement.
• Margin money support of 10% of the loan, up to ₹35,000 or ₹50,000.
• Annual CGTMSE guarantee fee is paid by the state government.
• No collateral security is demanded up to the limit set by the RBI.
• Up to 6 months moratorium; subsidy applies to interest paid regularly during it.
• Free short-term skill training with RSLDC.
• Beneficiaries can also claim other state government schemes as eligible.

Eligibility Criteria

• The applicant must be aged 18 to 45 years and the enterprise must be in Rajasthan.
• HUF, society, partnership firm, LLP and company applicants must be duly registered.
• At least 51% ownership of the institution must be with persons aged 18 to 45.
• Applicant must not be a defaulter of any bank or financial institution.

Lending Institutions

• Nationalised commercial banks
• RBI-authorised private scheduled banks and small finance banks
• Regional Rural Banks
• Rajasthan Financial Corporation
• SIDBI
• Urban and Central Co-operative Banks

Loans are covered under CGTMSE, so no collateral is asked up to the RBI limit.

How to Apply - Step by Step

1. Apply online on the department's portal for the scheme (SSO ID or e-Mitra), addressed to your District Industries & Commerce Centre (DIC).
2. A 3-member committee at the DIC reviews your application within 7 days of receipt.
3. The committee selects applicants on qualification, experience, interest, viability and market prospects.
4. If objections are raised, correct them within 15 days or the application is rejected automatically.
5. Selected applications go to the lending bank through the portal for loan sanction and disbursement.
6. Subsidy claims are then processed online through the portal. You can appeal to the Commissioner, Industries if rejected.

Important Conditions

• Margin money stays with the bank as a short-term deposit and is adjusted in your loan account after 2 years of running the unit without default.
• If the unit is not run for 2 years, the margin money goes back to the department without interest.
• Wrong information means the subsidy is recovered with 18% penal interest.
• Interest subsidy also stops if the loan becomes an NPA.

Activities not eligible:

• Commercial transport vehicles with on-road price above ₹15 lakh
• Products or activities restricted by the Central or State Government
• Mining and real estate activities
• Activities run by non-profits such as NGOs and trusts

Important Links