What this scheme offers
A collateral-free bank loan of up to ₹50 lakh for a manufacturing venture, or ₹25 lakh for a service or retail business, backed by a 3% interest subsidy that meaningfully lowers the effective cost of borrowing for young entrepreneurs in Madhya Pradesh. The scheme is administered through MPOnline in coordination with empanelled banks, aimed at genuinely helping new businesses get off the ground rather than just a token subsidy on a modest loan.
Who is eligible
- Permanent resident of Madhya Pradesh, typically aged 18 to 45 (confirm current age band on the portal).
- Proposing a viable manufacturing, service, or retail business.
- No default history on any earlier government loan scheme.
- Meets the bank's standard creditworthiness assessment for the loan amount sought.
Documents required
- Aadhaar card
- Educational qualification certificate, where relevant
- Detailed project report / business plan
- Bank account details
- Domicile certificate
How to apply
- Apply online through the MPOnline portal (mponline.gov.in).
- Prepare a detailed project report covering your business plan, expected costs, and revenue projections.
- Submit your application along with the project report and required documents.
- Empanelled banks evaluate the proposal and, if approved, sanction the loan with the 3% interest subsidy applied.
- Funds are typically disbursed in stages tied to project setup rather than as one lump sum.