Mukhyamantri Udyam Kranti Yojana is a self-employment scheme launched by the MSME Department, Government of Madhya Pradesh on 10 January 2021 that provides collateral-free bank loans from Rs. 1 lakh to Rs. 50 lakh to the youth of all categories aged 18 to 45 years for establishing new manufacturing or service enterprises, along with a 3% annual interest subsidy for up to 7 years.
Madhya Pradesh Mukhyamantri Udyam Kranti Yojana Highlights | |
|---|---|
| Scheme Name | Mukhyamantri Udyam Kranti Yojana |
| Launch Date | 10 January 2021 |
| Nodal Department | MSME Department, Government of Madhya Pradesh |
| Designated Officer | General Manager, District Trade and Industries Centre (DTIC) |
| Eligible Categories | All – General, OBC, SC, and ST |
| Age Limit | 18 to 45 years |
| Minimum Qualification | Class 8 pass |
| Income Limit | Annual family income up to Rs. 12 lakh |
| Loan for Manufacturing Units | Rs. 1 lakh to Rs. 50 lakh |
| Loan for Service Units | Rs. 1 lakh to Rs. 25 lakh |
| Interest Subsidy | 3% per annum for up to 7 years |
| Guarantee Fee | Borne by the Government for up to 7 years, including a moratorium |
| Collateral Required | No – collateral-free loan |
| Subsidy Payment Mode | DBT directly into the beneficiary’s loan account annually |
| Bank Decision Timeline | Maximum 6 weeks as per RBI guidelines |
| Loan Disbursement Timeline | Within 1 month of approval |
| Enterprises Covered | New enterprises only |
| Application Mode | Online only |
| Application Portal | samast.mponline.gov.in |
| MSME Department Portal | msme.mponline.gov.in |
Introduction of Madhya Pradesh Mukhyamantri Udyam Kranti Yojana: A Brief Insight
Thousands of educated young men and women in Madhya Pradesh want to start their own business but struggle to get bank loans, either because they lack collateral or because high interest rates make repayment look impossible. To solve both problems at once, the Government of Madhya Pradesh launched the Mukhyamantri Udyam Kranti Yojana on 10 January 2021 under the MSME Department.
Unlike community-specific self-employment schemes, this scheme is open to all categories – General, OBC, SC, and ST. The MSME Department of the Government of Madhya Pradesh implements the scheme through the District Trade and Industries Centre (DTIC) network across all districts.
Under the MP Government’s Mukhyamantri Udyam Kranti Yojana, eligible applicants aged 18 to 45 years with a minimum Class 8 qualification can avail collateral-free bank loans from Rs. 1 lakh to Rs. 50 lakh for manufacturing enterprises and from Rs. 1 lakh to Rs. 25 lakh for service sector units. The government provides a 3% annual interest subsidy for up to 7 years and also bears the bank loan guarantee fee. The subsidy transfers directly into the beneficiary’s loan account through DBT every year. Only those applicants are eligible whose Annual family income is not more than Rs. 12 lakh.
Applications of Mukhyamantri Udhyam Kranti Yojana are submitted entirely online through the SAMAST Portal.
SC entrepreneurs in Madhya Pradesh who want a higher loan specifically for their community can explore the Sant Ravidas Swarojgar Yojana, which provides loans up to Rs. 50 lakh with 5% interest subsidy for SC applicants. ST applicants planning larger enterprises can check the Bhagwan Birsa Munda Swarojgar Yojana. Entrepreneurs who need central government collateral-free loan support can explore the Pradhan Mantri Mudra Yojana, which provides loans up to Rs. 10 lakh through empanelled banks without any collateral requirement.
Young entrepreneurs and anyone looking for more self-employment schemes available under the Madhya Pradesh Government can explore all available programmes on our Madhya Pradesh Government Welfare Schemes page.
Benefits Provided to Eligible Beneficiaries
The MSME Department provides the following financial benefits to eligible applicants under the Mukhyamantri Udyam Kranti Yojana through empanelled banks:
Loan Assistance
| Project Type | Loan Amount |
|---|---|
| Manufacturing and Industrial Units | Rs. 1 lakh to Rs. 50 lakh |
| Service Sector Units | Rs. 1 lakh to Rs. 25 lakh |
Interest Subsidy
- Interest subsidy at the rate of 3% per annum on sanctioned loan for a maximum period of 7 years
- Interest subsidy reimbursed on an annual basis directly to the beneficiary’s loan account through DBT
- No interest subsidy provided for the period during which the beneficiary’s account remains NPA (Non-Performing Asset)
Additional Benefits
- Collateral-free loan – no security or guarantee required from the applicant
- Government bears the bank loan guarantee fee at the prevailing rate for a maximum of 7 years, including the moratorium period
- The bank decides on the application within a maximum of 6 weeks as per RBI guidelines
- The bank disburses the loan within 1 month of approval
- Scheme provisions are the same for all categories – General, OBC, SC, and ST
Eligibility Conditions Required to be Fulfilled
The Government of Madhya Pradesh has defined the following eligibility conditions for the Mukhyamantri Udyam Kranti Yojana. The scheme is open to all categories – General, OBC, SC, and ST. Applicants must fulfil all conditions before applying through the SAMAST Portal:
- The applicant must be a permanent resident of Madhya Pradesh
- The age of the applicant must be between 18 years and 45 years on the date of application
- The applicant must have passed a minimum of Class 8
- Annual family income must not exceed Rs. 12 lakh
- Income taxpayers are eligible; however, they must submit their last 3 years Income Tax Returns with the application
- The applicant must not be a defaulter of any bank, MFI, NBFC, SFB, or PACS
- The applicant must not be currently receiving benefits under any other state or central government self-employment scheme
- The scheme covers new enterprises only, existing businesses are not eligible
Who Is Not Eligible
- Non-residents of Madhya Pradesh
- Applicants below 18 years or above 45 years of age
- Applicants who are bank defaulters
- Applicants already receiving benefits under any government self-employment scheme
- Applicants seeking loan support for an existing business
Documents Required to be Attached
Applicants must submit the following documents while applying for the Mukhyamantri Udyam Kranti Yojana through the SAMAST Portal. Keep all documents ready before starting the online application:
- Aadhaar Card
- PAN Card
- Class 8 pass marksheet as minimum educational qualification proof
- Domicile or Residence Certificate confirming permanent residency in Madhya Pradesh
- Samagra ID
- Bank passbook with account number and IFSC code
- Project report describing the proposed enterprise, estimated cost, and expected income
- Passport size photograph of the applicant
- Mobile number linked to Aadhaar Card
- Last 3 years Income Tax Returns – mandatory only for applicants who are income taxpayers
How Beneficiaries Can Apply to Avail the Benefit of this Scheme
Mukhyamantri Udyam Kranti Yojana accepts applications online only through the SAMAST Portal at samast.mponline.gov.in. The entire process from application to loan disbursement happens online.
Step 1: Open samast.mponline.gov.in and create a new profile using your Aadhaar-linked mobile number. Complete OTP verification to activate your account.
Step 2: Log in and select Mukhyamantri Udyam Kranti Yojana from the scheme list. Fill in your personal details, educational qualification, enterprise type, proposed location, and loan amount required.
Step 3: Upload all required documents, Aadhaar Card, PAN Card, Class 8 marksheet, domicile certificate, Samagra ID, bank passbook, project report, and photograph. Income taxpayers must also upload the last 3 years’ Income Tax Returns. Verify every uploaded document is clear before proceeding.
Step 4: Submit the application. The MSME Department verifies your eligibility and forwards the application online to your chosen bank branch.
Step 5: The bank reviews your project report and assesses viability. As per RBI guidelines, the bank decides within 6 weeks. If approved, the bank disburses the loan within 1 month and updates the portal.
Step 6: After loan disbursement, the bank claims the 3% annual interest subsidy and guarantee fee online from the District Trade and Industries Centre (DTIC). The General Manager, DTIC, then transfers the subsidy directly into your loan account through DBT on an annual basis.
Important: No interest subsidy is provided for periods when your loan account is classified as NPA. Maintain regular repayments to continue receiving the subsidy for the full 7-year period. For any queries, contact the General Manager at your nearest District Trade and Industries Centre. Visit msme.mponline.gov.in for scheme guidelines.
What Businesses Can Be Started Under Mukhyamantri Udyam Kranti Yojana
| Manufacturing Units (Up to Rs. 50 lakh) | Service Units (Up to Rs. 25 lakh) |
|---|---|
| Food processing unit | Computer centre |
| Engineering workshop | Mobile and electronics repair shop |
| Fabrication unit | Automobile repair shop |
| Agro-processing unit | Consultancy service |
| Packaging unit | Logistics and transport service |
| Garment manufacturing unit | Retail trade business |
| Printing unit | Beauty and wellness centre |
Important: Only new enterprises qualify under this scheme. The enterprise must be established within Madhya Pradesh. Submit your application at samast.mponline.gov.in after preparing a clear project report for your chosen business.
Important Links Available
- SAMAST Portal – Apply for Mukhyamantri Udyam Kranti Yojana
- Mukhyamantri Udyam Kranti Yojana Application Status
- MSME Department, Government of Madhya Pradesh Official Portal
- Mukhyamantri Udyam Kranti Yojana Scheme Details
Contact Details in Case of Help Needed
- Designated Officer: General Manager, District Trade and Industries Centre (DTIC) of your district
- District Office: Visit the DTIC office at your district Collectorate during working hours for application assistance and scheme-related queries
Important: The District Trade and Industries Centre is the primary point of contact for all queries related to Mukhyamantri Udyam Kranti Yojana. For scheme information and circulars, visit msme.mponline.gov.in. For grievances, visit cmhelpline.mp.gov.in.
Frequently Asked Questions (FAQs)
Q. What is Mukhyamantri Udyam Kranti Yojana?
Ans. Mukhyamantri Udyam Kranti Yojana is a self-employment scheme launched by the MSME Department, Government of Madhya Pradesh, on 10 January 2021. It provides collateral-free bank loans to educated youth of all categories for establishing new manufacturing or service enterprises, along with a 3% annual interest subsidy and government-backed loan guarantee fee support for up to 7 years.
Q. Who can apply under this scheme?
Ans. Any permanent resident of Madhya Pradesh aged between 18 and 45 years who has passed a minimum of Class 8, has an annual family income of Rs. 12 lakh or less, is not a bank defaulter, and is not currently receiving benefits under any other government self-employment scheme can apply. The scheme is open to all categories – General, OBC, SC, and ST.
Q. What is the maximum loan amount under this scheme?
Ans. For manufacturing and industrial units, loans from Rs. 1 lakh to Rs. 50 lakh is available. For service sector units, loans from Rs. 1 lakh to Rs. 25 lakh are available.
Q. What is the interest subsidy under this scheme?
Ans. The government provides a 3% annual interest subsidy on the sanctioned loan for a maximum period of 7 years. The subsidy transfers directly into the beneficiary’s loan account through DBT on an annual basis. No subsidy is provided for periods when the loan account is classified as NPA.
Q. How does the 3% interest subsidy work?
Ans. The government does not pay the subsidy upfront as cash. After loan disbursement, the bank claims the 3% annual interest subsidy from the District Trade and Industries Centre (DTIC). The General Manager, DTIC, then transfers this amount directly into the beneficiary’s loan account every year. This reduces the effective interest burden on the entrepreneur. The subsidy continues for up to 7 years as long as the loan account remains regular.
Q. Is collateral required for the loan?
Ans. No. Mukhyamantri Udyam Kranti Yojana provides collateral-free loans. The government bears the bank loan guarantee fee under the applicable guarantee scheme so that applicants can access loans without providing security or collateral.
Q. What is the age limit for this scheme?
Ans. The applicant must be between 18 years and 45 years of age on the date of application.
Q. Can income taxpayers apply under this scheme?
Ans. Yes. Individual taxpayers can apply under the scheme. However, they must submit their last 3 years’ Income Tax Returns along with the application as a mandatory document.
Q. How long does the bank take to decide on the loan application?
Ans. As per RBI guidelines, the bank takes a maximum of 6 weeks to decide on the application. If the loan is approved, the bank disburses the amount within 1 month of approval and updates the SAMAST Portal.
Q. Can existing business owners apply?
Ans. No. The scheme covers new enterprises only. Applicants seeking loan support for an existing business are not eligible.
Q. How can I apply for this scheme?
Ans. Applications are accepted online only through the SAMAST Portal at samast.mponline.gov.in. Create a profile, log in, select Mukhyamantri Udyam Kranti Yojana, fill in all details, upload the required documents, and submit. The application is then forwarded online to the chosen bank branch for appraisal.
Q. What documents are required to apply?
Ans. Required documents include Aadhaar card, PAN card, Class 8 pass marksheet, domicile certificate, Samagra ID, bank passbook, project report, and passport-size photograph. Income taxpayers must additionally submit the last 3 years of ITR.
Q. Is this scheme only for specific castes?
Ans. No. Mukhyamantri Udyam Kranti Yojana is open to all categories – General, OBC, SC, and ST. The scheme provisions are the same for all categories. This is the key difference from community-specific schemes like Sant Ravidas Swarojgar Yojana (SC only) and Bhagwan Birsa Munda Swarojgar Yojana (ST only).
Q. Who should I contact for help with this scheme?
Ans. Contact the General Manager at the District Trade and Industries Centre (DTIC) of your district. The DTIC office is located at your district Collectorate. For online assistance, visit msme.mponline.gov.in or raise a grievance at cmhelpline.mp.gov.in.
Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.