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File No. SS-RJ-BIZ-001 · Rajasthan State Scheme · Commissionerate of Industries

Mukhyamantri Laghu Udyog Protsahan Yojana (Rajasthan)

Five years of state-paid interest on bank loans for Rajasthan enterprises — 8% on loans up to ₹25 lakh, 6% up to ₹5 crore and 5% up to ₹10 crore — with no collateral needed up to ₹10 lakh.

What this scheme offers

The Mukhyamantri Laghu Udyog Protsahan Yojana (MLUPY) does not lend money itself; it pays part of the interest on the loan you take from a bank. For five years the Rajasthan government pays 8% on loans up to ₹25 lakh, 6% on loans from ₹25 lakh to ₹5 crore and 5% on loans from ₹5 crore to ₹10 crore, which can cut a bank's 11% rate to a few per cent. New manufacturing and service units can borrow up to ₹10 crore, and units expanding or modernising up to ₹1 crore. Loans up to ₹10 lakh need no collateral and go to the bank without an interview; larger ones are first scrutinised by a District Level Task Force Committee.

Who is eligible

  • An enterprise set up in Rajasthan — a proprietor aged 18 or above, or a registered firm, LLP, company, society or self-help group.
  • For societies and self-help groups: all members must be Rajasthan residents and the group at least one year old.
  • Finance must come from a nationalised or private bank, scheduled small finance bank, regional rural bank, Rajasthan Financial Corporation or SIDBI.
  • New units: at least 60% of the loan as term loan and at most 40% as working capital; expansion or modernisation: at least 75% term loan.
  • Trading firms can borrow up to ₹1 crore, with loans up to ₹25 lakh limited to working capital.

Documents required

  • Udyam / MSME registration
  • Aadhaar and PAN of the proprietor or partners
  • Project report and quotations
  • Bank sanction letter for the loan
  • Registration or incorporation papers of the firm, LLP, company or society
  • Bank account details

How to apply

  1. Register on the Rajasthan Single Sign-On portal (sso.rajasthan.gov.in) and open the Citizen App.
  2. Click the MLUPY icon and fill in the enterprise, project and loan details.
  3. Upload the documents; loan applications up to ₹10 lakh go straight to the bank without an interview.
  4. Larger applications are scrutinised by the District Level Task Force Committee before being forwarded to the bank.
  5. After the loan is sanctioned and disbursed, claim the interest subvention separately through the SSO portal.

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