Introduction Mukhyamantri Laghu Udhyog Protsahan Yojana was introduced by the Rajasthan Government on 17 December 2019 to promote entrepreneurship, strengthen small businesses and create employment opportunities. The scheme is implemented by the Industries and Commerce Department through District Industries Centres (DICs). Eligible applicants can seek bank finance to establish a new enterprise or expand, diversify or modernise an existing business. The government provides an interest subsidy for up to five years, subject to the scheme's conditions and applicable repayment requirements. The maximum loan limit is ₹10 crore for eligible new manufacturing and service units and ₹1 crore for trading businesses or the expansion, diversification and modernisation of existing units. Benefits Interest subsidy: Eligible loans receive an interest subsidy of 8%, 6% or 5%, depending on the loan amount. Subsidy period: Interest support is available for up to five years, subject to applicable scheme conditions. Collateral-free loans: Loans up to ₹10 lakh may be provided without collateral, subject to applicable lending rules. Credit guarantee: Eligible loans exceeding ₹10 lakh may qualify for coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Benefits for weavers: Eligible weaver-card holders can receive 100% interest reimbursement on loans up to ₹1 lakh. Benefits for artisans: Eligible handicraft and artisan-card holders can receive 100% interest reimbursement on loans up to ₹3 lakh. Interest relief: Where the bank's applicable interest rate is equal to or below the prescribed subsidy rate, eligible interest may be fully reimbursed under scheme rules. Repayment flexibility: Banks may allow a repayment moratorium of up to six months, subject to their terms and scheme provisions. Land-related expenses: Interest subsidy may cover the eligible portion of a loan used for land, up to 25%, as permitted under the scheme. Business assistance: District Industries Centres can guide applicants with project reports, application procedures and post-loan follow-up. Interest subsidy rates: Loans up to ₹25 lakh: 8% subsidy. Loans above ₹25 lakh and up to ₹5 crore: 6% subsidy. Loans above ₹5 crore and up to ₹10 crore: 5% subsidy. Maximum loan amount by business category: New manufacturing unit: Up to ₹10 crore. New service unit: Up to ₹10 crore. Wholesale or retail trading business: Up to ₹1 crore. Expansion, diversification or modernisation of an existing unit: Up to ₹1 crore. Eligibility Individual applicants must be at least 18 years old. The proposed or existing business must be established in Rajasthan. The enterprise must qualify as a micro or small enterprise under the applicable scheme rules. Eligible business activities may include manufacturing, services and trading. Individuals, Self-Help Groups (SHGs), societies, partnership firms, Limited Liability Partnerships (LLPs) and companies may apply, subject to the prescribed requirements. Groups, societies, firms, LLPs and companies must have the necessary registration under applicable rules. Additional requirements for SHGs and societies: The group must be formed under a Rajasthan Government department, as required by the scheme. All members must be residents of Rajasthan. The group must not be a defaulter of a bank or government department. The group must meet the prescribed minimum operating period and maintain proper savings and lending records. Cooperative societies must be registered with the Cooperative Department, maintain audited accounts and undertake production-related activities. Restrictions and excluded activities: Applicants may be ineligible if a family member—husband, wife or minor child—received a capital or interest subsidy under a Central or State Government scheme during the preceding five years. Applicants may also be ineligible if a family member is a defaulter of a bank or financial institution. Activities involving meat products, liquor or intoxicants, explosives, prohibited products, non-recyclable polythene or harmful plastic products are excluded. Other listed exclusions include transport vehicles costing more than ₹10 lakh on-road, mining, real estate, schools, colleges, coaching centres, and activities operated by NGOs or trusts. Final eligibility depends on the applicable scheme notification, enterprise classification and the lending bank's assessment. Documents Completed self-assessment form. Udyog Aadhaar or applicable enterprise registration details. Caste certificate, where applicable. Business project report outlining the proposed activity, estimated expenditure and loan requirement. Educational qualification marksheets or certificates, where required. Registration certificate for SHGs, societies, partnership firms, LLPs or companies, as applicable. Land or building ownership documents, if relevant to the proposed business. Passport-size photograph. Applicants should check the online form for any additional documents required for their business category or loan application. Process to Apply Eligible applicants can apply online through the Rajasthan SSO portal or seek assistance from an e-Mitra Kendra. Apply through the Rajasthan SSO portal: Prepare the business project report and arrange the required documents. Visit the Rajasthan SSO portal. Create an SSO ID if you are not registered. Sign in through the SSO login page. Open the Mukhyamantri Laghu Udhyog Protsahan Yojana application. Enter your personal details, enterprise information, project cost and requested loan amount. Select the relevant District Industries Centre and preferred financial institution. Complete the self-assessment section and upload the required documents. Review the information and submit the application. Save the application reference number to track its status later. Apply through an e-Mitra Kendra: Visit a nearby e-Mitra Kendra with your project report and supporting documents. Request assistance with completing the online MLUPY application. Check all entered information before final submission. Pay the applicable service charge. The provided scheme information states that the fee should not exceed ₹30. Collect the application receipt and keep it safe. What happens after submission? For loan applications below ₹10 lakh, the DIC checks the documents and forwards the application to the bank without an interview, according to the provided scheme information. For applications above ₹10 lakh, a district-level committee led by the DIC General Manager may call the applicant for an interview. The committee may assess the applicant's experience, business plan, market potential, skills and repayment capacity. The bank makes the final decision regarding loan sanction and disbursement. Applicants should keep their registered mobile number active for application-related SMS updates. How the interest subsidy is processed: The eligible subsidy is adjusted against the interest payable on the loan rather than paid directly to the applicant as unrestricted cash. As described in the provided information, the bank submits interest claims to the DIC quarterly, and the eligible subsidy is processed according to the scheme procedure. Business status and other prescribed conditions may be verified before the subsidy is released. Important: An e-Mitra Kendra assists with application submission but does not approve loans. Do not pay intermediaries who promise loan approval. The provided scheme information lists helpline 181 for reporting such demands. It also states that DICs conduct free assistance camps every Wednesday; confirm the schedule with your local DIC before visiting. Important Links and Contact Scheme login: Mukhyamantri Laghu Udhyog Protsahan Yojana login Rajasthan SSO: Official SSO portal Nodal department: Industries and Commerce Department, Rajasthan Scheme information: MLUPY scheme details Revised notification: Revised scheme notification Helpline number: 0141-2227727 Email address: indraj@rajasthan.gov.in Report unofficial payment demands: 181, as stated in the provided scheme information. Before applying, confirm the latest requirements, subsidy conditions and contact details with the Rajasthan Industries and Commerce Department or your District Industries Centre. FAQs Q1. What is Mukhyamantri Laghu Udhyog Protsahan Yojana?It is a Rajasthan Government scheme that supports eligible businesses through bank loans with an interest subsidy. Q2. Who is eligible to apply for MLUPY?Individuals aged 18 or above, SHGs, societies, partnership firms, LLPs and companies may apply if they satisfy the scheme's conditions. Q3. Which types of businesses are covered?Eligible micro and small enterprises involved in manufacturing, services or trading can apply, subject to activity-specific restrictions. Q4. What is the maximum loan amount under the scheme?Eligible new manufacturing and service units may receive loans up to ₹10 crore, while trading businesses and existing units seeking expansion, diversification or modernisation may receive up to ₹1 crore. Q5. What interest subsidy rates are available?The stated rates are 8% for loans up to ₹25 lakh, 6% for loans above ₹25 lakh and up to ₹5 crore, and 5% for loans above ₹5 crore and up to ₹10 crore. Q6. Are collateral-free loans available under MLUPY?The provided scheme information states that loans up to ₹10 lakh can be provided without collateral, subject to applicable lending conditions. Q7. What documents are needed for the application?Common documents include a self-assessment form, enterprise registration details, project report, photograph and applicable caste, educational, organisational or property documents. Q8. How do I apply for Mukhyamantri Laghu Udhyog Protsahan Yojana?Apply through the Rajasthan SSO portal or visit an e-Mitra Kendra for help completing the online form. Q9. How is the interest subsidy provided?The eligible subsidy is adjusted against the loan's interest liability and processed through the prescribed bank and District Industries Centre procedure. Q10. Where can I contact the scheme department?You can call 0141-2227727, email indraj@rajasthan.gov.in or contact your district's District Industries Centre for assistance.