MP Mukhyamantri Udyam Kranti Yojana — 3% Subsidy Loan

What is MP Mukhyamantri Udyam Kranti Yojana?

Mukhyamantri Udyam Kranti Yojana (MUKY) is the Madhya Pradesh government's self-employment scheme providing loans with 3% interest subvention and no guarantor requirement to youth for starting new businesses in manufacturing, service, or retail sectors.

Launched to boost entrepreneurship among educated unemployed youth, the scheme connects applicants with banks and provides government-backed interest relief.

Loan Details

Key features:

• No collateral / guarantor for loans up to ₹25 lakh (CGTMSE-backed)
• Interest subvention of 3% for 7 years from the date of first disbursement
• Margin money (down payment): 10% of project cost (to be contributed by applicant)

Who is Eligible?

• Age: 18 to 45 years
• Education: Must have passed Class 12 (Higher Secondary)
• Residence: Permanent resident of Madhya Pradesh
• Not holding a government/regular private job
• Not a defaulter on any previous government loan
• Annual family income: Below ₹12 lakh per year (broad income limit)

Priority Categories

• SC/ST applicants — preference
• Women — preference
• Differently-abled

New Business Only

MUKY is for new ventures only — it does not support expansion of existing businesses. If you already run a business, look at CGTMSE or MSME expansion loans.

How to Apply

1. Go to samast.mponline.gov.in
2. Click "Mukhyamantri Udyam Kranti Yojana"
3. Register with Aadhaar + mobile OTP
4. Fill application:
   • Personal and education details
   • Business type and project description
   • Project cost estimate
   • Preferred bank
5. Upload documents
6. Submit → Application goes to district MSME office
7. After DIC verification → forwarded to selected bank
8. Bank sanctions loan → government releases 3% subsidy into loan account annually

Documents Required

1. Aadhaar card
2. Class 12 mark sheet / certificate
3. MP domicile / residence certificate (or Aadhaar with MP address)
4. Business project report (1-2 pages describing business idea, cost estimate, expected revenue)
5. Affidavit — that the applicant is unemployed and not a defaulter
6. Caste certificate (SC/ST for priority consideration)
7. Bank account details
8. Passport-size photograph

MUKY vs Yuva Swarozgar (MYSY in UP) — for context

MUKY is MP's equivalent of UP's Yuva Swarozgar Yojana. Both offer government-backed loans for youth entrepreneurship:

• MUKY: 3% interest subvention, larger loan (up to ₹50L for manufacturing)
• UP MYSY: 25% margin money, up to ₹25L

Frequently Asked Questions

Can I apply for a shop or grocery store under MUKY?

Yes — retail/trading sector is covered up to ₹25 lakh. A grocery shop, clothing store, or general store qualifies.

Is 10% margin money mandatory?

Yes — you need to bring 10% of the project cost as your own contribution. Example: ₹10 lakh project → you pay ₹1 lakh, bank gives ₹9 lakh.

I am a Class 10 pass (10th). Am I eligible?

No — the minimum educational qualification is Class 12 (12th pass). Class 10 only does not qualify.

Can women start a beauty parlour or tailoring centre under MUKY?

Yes — beauty parlours and tailoring centres fall under the service sector. Women applicants also get priority processing.

How is the 3% interest subsidy credited?

The bank charges you the full interest rate (e.g., 10%). At the end of each year, the government pays 3% directly to the bank from the subsidy account, reducing your effective interest to ~7%.

Official Links

• Apply: samast.mponline.gov.in
• MP MSME Department: msme.mponline.gov.in
• District Industries Centre: Contact your district DIC
• Helpline: 0755-6720200 (MP MSME helpdesk)