Uttar Pradesh Mukhyamantri Gramodyog Rojgar Yojana

Mukhyamantri Gramodyog Rojgar Yojana (MMGRY) is a credit-linked interest subsidy scheme launched by the Government of Uttar Pradesh in 2002 to promote self-employment in rural areas. The scheme is implemented by the Uttar Pradesh Khadi and Village Industries Board (UPKVIB) and provides bank loans of up to Rs. 10 lakh for establishing village industry units. Eligible women, SC, ST, OBC, minority communities, ex-servicemen, and persons with disabilities receive a 100% interest subsidy, while General Category beneficiaries pay only 4% annual interest.

Introduction of Uttar Pradesh Mukhyamantri Gramodyog Rojgar Yojana: A Brief Insight

Starting a small business in a village often requires only a practical idea and timely financial support. Many rural youth in Uttar Pradesh have the skills to establish enterprises such as flour mills, tailoring units, pottery workshops, bamboo craft centres, food processing units, or other village industries, but arranging the initial investment remains a major challenge. To encourage self-employment in rural areas, the Government of Uttar Pradesh launched the Mukhyamantri Gramodyog Rojgar Yojana (MMGRY) in 2002. The scheme provides bank finance along with an interest subsidy to help eligible entrepreneurs establish village industry units.

The scheme is implemented by the Uttar Pradesh Khadi and Village Industries Board (UPKVIB) under the Khadi and Village Industries Department, Government of Uttar Pradesh. At the district level, applications are processed through the District Gramodyog Officer under the supervision of the District Magistrate. The primary objective is to generate self-employment, strengthen the rural economy, and create sustainable livelihood opportunities within villages.

Eligible applicants can obtain bank loans of up to Rs. 10 lakh, including both term loans and working capital. Loans up to this limit are generally collateral-free in accordance with RBI guidelines. General Category beneficiaries pay only 4% annual interest, while the remaining interest is borne by the Uttar Pradesh Government. Women, SC, ST, OBC, Minority communities, Ex-servicemen, and Persons with Disabilities receive a 100% interest subsidy, making the loan effectively interest-free. General Category applicants contribute 10% of the project cost, whereas reserved category applicants contribute only 5%.

For the financial year 2026–27, the Government has targeted the establishment of 800 new village industry units through bank credit of around Rs. 40 crore, with the potential to generate employment for more than 16,000 people. Since its launch, the scheme has supported over 5 lakh beneficiaries across Uttar Pradesh.

Permanent residents of Uttar Pradesh aged between 18 and 50 years who reside in notified rural areas, are not bank defaulters, and meet the scheme conditions can apply online through mmgrykhadi.upsdc.gov.in. After registration and submission of the Detailed Project Report (DPR), eligible applications are examined by the District Task Force Committee headed by the District Magistrate and forwarded to banks for sanction. As per RBI guidelines, banks are expected to process eligible loan applications within six weeks. Applicants can also seek assistance through the Gramodyog Samadhan Cell by calling the toll-free helpline 1800-120-7699.

Entrepreneurs planning larger village industry projects may also explore the Pt. Deendayal Gramodyog Rojgar Yojana, which supports projects with higher loan limits. Those looking for assistance to establish manufacturing or service enterprises can also check the Prime Minister Employment Generation Programme (PMEGP), or PM Mudra Yojana, which provides margin money subsidy on eligible bank loans.

You can explore more self-employment, MSME, and village industry initiatives on our Uttar Pradesh Government Schemes page.

Benefits Provided to Eligible Beneficiaries

Eligible rural entrepreneurs approved under the Mukhyamantri Gramodyog Rojgar Yojana receive the following financial assistance and support from the Uttar Pradesh Government through the Uttar Pradesh Khadi and Village Industries Board (UPKVIB):

Loan and Interest Subsidy

• Bank loan of up to Rs. 10 lakh (including Term Loan and Working Capital) for establishing eligible village industry units
• Loans up to Rs. 10 lakh are generally collateral-free as per RBI guidelines
• The Uttar Pradesh Government provides interest subsidy directly to the financing bank on behalf of eligible beneficiaries

Interest Subsidy Details

Beneficiary Contribution

Additional Benefits

• More than 5 lakh entrepreneurs have benefited under the scheme since its launch
• For FY 2026-27, the Government aims to establish 800 new village industry units with bank credit of approximately Rs. 40 crore
• The scheme is expected to generate employment for over 16,000 people during FY 2026–27
• The District Gramodyog Officer issues the eligibility certificate required for the interest subsidy
• The sanctioned interest subsidy is transferred directly to the financing bank through RTGS
• If a unit suffers losses due to a natural calamity or an accident, the bank and the District Gramodyog Officer may jointly assess the case and recommend continuation of the interest subsidy, subject to the scheme guidelines
• Beneficiaries receiving large supply or export orders may be considered for additional working capital as per the applicable provisions
• UPKVIB also conducts awareness and entrepreneurship programmes at the block level to promote the scheme among rural entrepreneurs

Eligibility Conditions Required to be Fulfilled

Applicants must satisfy the following eligibility conditions to avail the benefits of the Mukhyamantri Gramodyog Rojgar Yojana:

• Must be a permanent resident of Uttar Pradesh.
• Must reside in a rural area and establish the proposed village industry unit within a rural area as defined under the Uttar Pradesh Panchayat Raj Act.
• Applicant’s age should be between 18 and 50 years.
• Must be unemployed and willing to establish a new village industry enterprise.
• Must be able to contribute the required share of the project cost:
  • General Category: 10% of the project cost.
  • SC, ST, Women, Minorities, Ex-servicemen and Persons with Disabilities: 5% of the project cost.
• Must not be a defaulter of any bank or financial institution.
• Must be registered with the District Employment Exchange (Rojgar Karyalay).

Preference Will Be Given To

• Technically trained unemployed youth from ITI, Polytechnic and other recognised technical institutions.
• Educated unemployed youth who have crossed the age limit for government employment.
• Candidates trained under SGSY, TRYSEM or other Government-sponsored skill development programmes.
• Traditional artisans engaged in village industries.
• Women interested in establishing self-employment ventures.
• Candidates who passed 10+2 with Gramodyog (Village Industries) as a vocational subject.
• Applicants registered with the Employment Exchange.

Selection Criteria

• At least 50% of the selected beneficiaries should belong to the SC, ST or OBC categories.
• The District Gramodyog Officer assesses the availability of local raw materials before recommending the proposed project.
• Preference is given to village industry units that manufacture goods required for day-to-day local consumption.

Who Is Not Eligible

• Applicants residing in urban areas.
• Applicants below 18 years or above 50 years of age.
• Applicants declared as bank defaulters.
• Applicants who are unable to arrange the required beneficiary contribution.

Documents Required to be Attached

Applicants should upload or submit the following documents while applying for the Mukhyamantri Gramodyog Rojgar Yojana:

• Aadhaar Card.
• PAN Card.
• Domicile Certificate of Uttar Pradesh.
• Rural Residence Certificate issued by the Gram Pradhan or Gram Panchayat Officer.
• Age proof (Birth Certificate, Class 10 Marksheet or any other valid document).
• Educational qualification certificates and marksheets.
• ITI, Polytechnic or any Government-recognised technical training certificate, if applicable.
• Caste Certificate for applicants belonging to the SC, ST or OBC category.
• Employment Exchange Registration Certificate issued by the District Rojgar Karyalay.
• Detailed Project Report (DPR) describing the proposed village industry, project cost, raw material requirements and estimated income.
• Aadhaar-linked bank account details.
• Recent passport-size photographs.

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

Eligible applicants can apply for the Mukhyamantri Gramodyog Rojgar Yojana through the official online portal of the Uttar Pradesh Khadi and Village Industries Board (UPKVIB). Before starting the application, applicants should prepare a Detailed Project Report (DPR) and keep all the required documents ready.

Method 1: Apply Online Through the Official Portal

Step 1: Visit the official Mukhyamantri Gramodyog Rojgar Yojana portal at mmgrykhadi.upsdc.gov.in. You can also access the portal through the UPKVIB website by selecting the Mukhyamantri Gramodyog Rojgar Yojana option under the Online Services section.

Step 2: Click on “Online Application / ऑनलाइन आवेदन के लिए यहाँ क्लिक करें”. Register using your name, Aadhaar number and mobile number. Complete the OTP verification to create your account. The portal will generate your User ID and Password.

Step 3: Sign in using your User ID and Password. Fill in the online application form with all the required information, including personal details, educational qualifications, technical training (if any), rural residence details, proposed village industry, project cost, source of raw materials and other relevant information.

Step 4: Upload scanned copies of all the required documents, including your Aadhaar Card, PAN Card, domicile certificate, rural residence certificate, educational certificates, Employment Exchange registration certificate, caste certificate (where applicable) and the Detailed Project Report (DPR).

Step 5: Select the bank branch from which you wish to obtain the loan, verify all the information entered in the application form and submit it. After successful submission, note down the application reference number for future use.

Step 6: You can track the progress of your application anytime through the Application Status page by entering your application reference number.

Method 2: Apply Through the District Gramodyog Officer

Step 1: Applicants who need assistance can visit the office of the District Gramodyog Officer with all the required documents and the Detailed Project Report (DPR).

Step 2: The District Gramodyog Officer will verify the documents, guide the applicant in selecting a suitable village industry based on local resources and assist in completing the application process, wherever required.

Step 3: Eligible applications are placed before the District Task Force Committee for scrutiny. After approval, the application is forwarded to the selected bank for processing of the loan.

What Happens After Submission?

Step 1: The District Task Force Committee examines eligible applications and recommends suitable proposals to the financing bank. Banks are required to process the loan application within a maximum period of six weeks in accordance with RBI guidelines.

Step 2: Once the loan is sanctioned, the District Gramodyog Officer issues the Interest Subsidy Eligibility Certificate, which enables the beneficiary to receive the interest subsidy available under the scheme. The certificate is renewed every year after verification.

Step 3: After the unit starts functioning, the financing bank claims the interest subsidy from the Uttar Pradesh Government. The subsidy amount is transferred directly to the bank through RTGS and is adjusted against the beneficiary’s loan account at regular intervals as prescribed under the scheme.

For detailed instructions, applicants may download the official scheme guidelines from the MMGRY portal. They may also contact the nearest District Gramodyog Officer or visit the UPKVIB official website for further assistance.

Eligible Village Industries Under Mukhyamantri Gramodyog Rojgar Yojana

The Mukhyamantri Gramodyog Rojgar Yojana supports a wide range of village industries approved by the Khadi and Village Industries Commission (KVIC). Applicants can establish any eligible unit covered under the scheme, subject to project viability and the availability of local raw materials.

The final project is approved by the District Gramodyog Officer after assessing its feasibility, the availability of local raw materials and its conformity with the list of village industries notified by KVIC and the scheme guidelines.

MMGRY vs Pt. Deendayal Gramodyog Rojgar Yojana vs PMEGP

If you are planning to start a small business, the following comparison will help you choose the scheme that best matches your requirements.

Important Links Available

• Apply Online for Mukhyamantri Gramodyog Rojgar Yojana
• Check Application Status
• Applicant Login
• Download General Instructions (PDF)
• Mukhyamantri Gramodyog Rojgar Yojana Official Portal
• Uttar Pradesh Khadi and Village Industries Board (UPKVIB)
• Government of Uttar Pradesh

Contact Details in Case of Help Needed

• Organisation: Uttar Pradesh Khadi and Village Industries Board (UPKVIB)
• Address: 8, Tilak Marg, Lucknow – 226001, Uttar Pradesh
• Phone: 0522-2208321, 0522-2208310, 0522-2208313, 0522-2207004
• Fax: 0522-2208243
• Email: ceoupkvib@gmail.com
• Gramodyog Samadhan Cell (Toll-Free): 1800-120-7699
• Office Hours: Monday to Friday, 9:30 AM to 6:00 PM
• District-Level Assistance: Contact the District Gramodyog Officer for guidance on the application process, project report (DPR), interest subsidy, and other scheme-related assistance.

Frequently Asked Questions (FAQs)

Q. What is Mukhyamantri Gramodyog Rojgar Yojana?

Ans. Mukhyamantri Gramodyog Rojgar Yojana (MMGRY) is a credit-linked interest subsidy scheme launched by the Uttar Pradesh Government in 2002. It helps eligible rural entrepreneurs establish village industry units by providing bank loans of up to Rs. 10 lakh along with interest subsidy through the Uttar Pradesh Khadi and Village Industries Board (UPKVIB).

Q. What is the maximum loan available under this scheme?

Ans. Eligible applicants can avail a bank loan of up to Rs. 10 lakh, including both Term Loan and Working Capital. Loans up to this limit are generally collateral-free as per RBI guidelines.

Q. What interest subsidy is available?

Ans. General Category applicants pay an effective interest rate of 4% per annum, while the Uttar Pradesh Government bears the remaining interest. Eligible SC, ST, OBC, Women, Minorities, Ex-servicemen and Persons with Disabilities receive a 100% interest subsidy, subject to the scheme guidelines.

Q. Who can apply for Mukhyamantri Gramodyog Rojgar Yojana?

Ans. Permanent residents of Uttar Pradesh aged between 18 and 50 years, residing in rural areas, who wish to establish a village industry unit and fulfil the prescribed eligibility conditions, can apply.

Q. Is there any age limit for applicants?

Ans. Yes. Applicants must be at least 18 years old and should not be more than 50 years of age at the time of application.

Q. How much own contribution is required?

Ans. General Category applicants must contribute 10% of the project cost. Applicants belonging to SC, ST, Women, Minorities, Ex-servicemen and Persons with Disabilities are required to contribute only 5% of the project cost.

Q. Which business activities are covered under the scheme?

Ans. The scheme supports village industries approved by the Khadi and Village Industries Commission (KVIC), including food processing, textile and handloom, forest-based industries, mineral-based industries, engineering units and several other rural enterprises.

Q. How can I apply for the scheme?

Ans. Applications can be submitted online through the official MMGRY portal. Applicants may also seek guidance from the District Gramodyog Officer while preparing the application and Detailed Project Report (DPR).

Q. Is a Detailed Project Report (DPR) mandatory?

Ans. Yes. A Detailed Project Report (DPR) is an essential part of the application. It should describe the proposed business, project cost, raw materials, estimated expenditure and expected income.

Q. How can I check my application status?

Ans. Applicants can check their application status online through the Application Status portal using their application reference number.

Q. How long does the bank take to process the loan?

Ans. As per RBI guidelines, the financing bank should process the forwarded loan application within a maximum period of six weeks.

Q. What happens if the unit is damaged due to a natural calamity?

Ans. In such cases, the bank and the District Gramodyog Officer jointly assess the loss. Based on their recommendations and the scheme provisions, the competent authority may allow continuation of the interest subsidy.

Q. Are women eligible for this scheme?

Ans. Yes. Women are eligible to apply and also receive a 100% interest subsidy, subject to the scheme guidelines and fulfilment of all eligibility conditions.

Q. What is the Gramodyog Samadhan Cell?

Ans. Gramodyog Samadhan Cell is the dedicated grievance and assistance helpline of UPKVIB. Applicants can contact the toll-free number 1800-120-7699 for information or assistance related to the scheme.

Q. How many beneficiaries have received assistance under the scheme?

Ans. Since its launch, the Mukhyamantri Gramodyog Rojgar Yojana has benefited more than 5 lakh rural entrepreneurs. For FY 2026–27, the Government aims to establish 800 new village industry units and generate employment for over 16,000 people.

Tabassum

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.