MP Mukhyamantri Udyam Kranti Yojana – Loan up to INR 50 Lakh for 8th Pass

The Mukhyamantri Udyam Kranti Yojana (MUKY) is a government-sponsored scheme in Madhya Pradesh implemented by the Department of Micro, Small and Medium Enterprises. Launched by Chief Minister of MP, Shri Shivraj Singh Chouhan in 2022, this scheme aims to empower the youth of Madhya Pradesh with the support of the banking system.

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Under this scheme, collateral-free loan ranging from INR 1,00,000 to INR 50,00,000 is offered to the youth of Madhya Pradesh for setting up manufacturing units and enterprises for the service sector at a 3% interest subsidy rate for 7 years. The scheme provides financial assistance to aspiring individuals who have completed Class 8 to help them establish their enterprises within the state. As part of its financial assistance to beneficiaries, the government offers a Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantee fee subsidy for up to 7 years in addition to the interest subsidy.

This article comprehensively explains the MUKY scheme, including who can apply, how much money can be borrowed, what the interest rates are, and other important information. 

*Interest subsidy is a financial assistance program that helps borrowers people and businesses borrow money at a lower cost and pay some or all of the interest on their loans. The goal is reduce the overall cost of borrowing and make loans more affordable for borrowers.


The *CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) guarantee fee refers to the fee charged to lending institutions (LIs) in exchange for a guarantee on loans that they provide to micro and small enterprises (MSEs). The CGTMSE guarantee covers up to 75% of the loan amount in the event of default by the MSE. The CGTMSE guarantee fee is calculated as a percentage of the guaranteed loan amount and is charged annually. The fee rate varies depending on the type of loan, the size of the loan, and the credit rating of the MSE.

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An Overview of Mukhyamantri Udyam Kranti Yojana

Name of the Scheme Mukhyamantri Udyam Kranti Yojana
Provider Government of Madhya Pradesh
Official Website
Beneficiaries 8th pass  students of Madhya Pradesh
Age Limit 18 to 45 Years
Loan Amount Up to INR 50 lakh
Interest Subsidy on Loan Amount 3% per annum
Application Mode Online
Loan Repayment Period 7 Years
Nature of Facility Working Capital and Term Loan

Aim of Mukhyamantri Udyam Kranti Yojana

The global pandemic severely impacted the employment landscape in Madhya Pradesh, resulting in a significant surge in unemployment. The number of unemployed individuals in Madhya Pradesh increased from 24.72 lakh in 2020 to a staggering 30.23 lakh in 2021. 

Data by Asian Development Bank’s Demand Analysis Summary

Data by Asian Development Bank’s Demand Analysis Summary 2020

Moreover, the annual growth percentage of GDP in 2013 was approximately 12%. However, over time, specifically by the end of the financial year 2019, the state witnessed a gradual decline in GDP to 8%. 

Recognising the urgent need to address this issue, the state government introduced the ‘Mukhyamantri Udyam Kranti Yojana’ to provide immediate attention and relief measures to alleviate the distress caused by unemployment in the state. The MUKY scheme has had a significant impact on the promotion of entrepreneurship in Madhya Pradesh. Since the launch of the scheme in 2018, it has helped to create over 1 lakh new jobs in the state. The scheme has also helped to boost economic growth and improve the standard of living of the people.

Eligibility for Mukhyamantri Udyam Kranti Yojana

The MUKY scheme is specifically open to residents of Madhya Pradesh, ensuring that the scheme’s benefits are accessible to local individuals. The eligibility criteria are as follows:

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    • Age – The scheme is designed specifically for the youth of Madhya Pradesh, between the ages of 18 to 45 years.
    • Education Qualification – Applicants should have at least passed Class 8.
    • Income criteria – 
      • Family Income – The total annual income of the applicant and their family should not exceed INR 12 lakh.
      • Family Definition – For unmarried applicants, the family consists of the applicant and their parents. For married applicants, the family includes the applicant, their spouse, and their children. 
      • Income Tax Payers – If the applicant’s family pays income tax, they must provide the previous three years’ Income Tax Returns (ITRs) along with the application.
    • Business Eligibility – The scheme covers businesses falling under the categories of manufacturing, service, and retail trade, as classified under the CGTSME scheme.
    • Other Requirements – 
      • No Default Record – Applicants should not be self-defaulters of any bank or financial institution like MFI (Micro Finance Institutions), NBFC (Non-Banking Financial Company), SFB (Small Finance Bank), PACS (Primary Agricultural Credit Society), etc.
      • Not Beneficiary of Other Schemes – Applicants should not be beneficiaries of any self-employment schemes offered by the central or state government.
      • Single-time Eligibility – Each applicant is eligible for assistance under this scheme only once.

Benefits of Mukhyamantri Udyam Kranti Yojana

  • For setting up manufacturing units – Loan amounts ranging from INR 1,00,000 to INR 50,00,000
  • For setting enterprises for the service sector – Loan amounts ranging from INR 1,00,000 to INR 25,00,000
  • 3% interest subsidy will be provided under this scheme for 7 years (including the moratorium period)

Note: To avail of the benefits, applicants must not have a default record with any bank or financial institution, and they should not be beneficiaries of any other self-employment scheme offered by the state or central government.

Financial Assistance Under Mukhyamantri Udyam Kranti Yojana

The MUKY scheme provides two types of financial assistance –

  1. Interest Subsidy – Under the scheme, eligible applicants can avail of an interest subsidy on the loan amount obtained from registered banks. It helps reduce the overall cost of borrowing, making it more affordable for the beneficiaries.
  2. CGTMSE Guarantee Fee Assistance – Under the MUKY program, the scheme may cover or subsidise all or a portion of the CGTMSE guarantee fee, which is usually paid by borrowers. 

Note – The specific details of the interest subsidy and CGTMSE guarantee fee assistance under the scheme may vary. It is recommended to refer to the official scheme guidelines or related government documents for accurate and up-to-date information regarding these financial support measures.

Important Aspects of Mukhyamantri Udyam Kranti Yojana

  • The Department of Micro, Small, and Medium Enterprises (MSME) is responsible for carrying out this program.
  • Banks that are registered with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will provide the money for the scheme.
  • The CGTMSE charges, processing fees, interest subsidy, and reimbursement are applied as per the scheme’s rules.

Participating Banks Under Mukhyamantri Udyam Kranti Yojana

The MUKY scheme involves active participation from a total of 22 banks which include: 

  • Bank of India
  • Central Bank of India
  • Bank of Baroda
  • Bank of Maharashtra
  • Union Bank
  • Indian Overseas Bank
  • Punjab National Bank
  • Indian Bank
  • ICICI Bank
  • Federal Bank
  • Dhanlaxmi Bank
  • UCO Bank
  • South Indian Bank
  • Yes Bank
  • Canara Bank
  • Axis Bank
  • IDBI Bank
  • Karur Vysya Bank
  • HDFC Bank
  • Bandhan Bank
  • State Bank of India
  • Punjab and Sind Bank

Documents Required for Mukhyamantri Udyam Kranti Yojana 

The documents required for the MUKY scheme may vary based on the guidelines and requirements. However, here are some commonly requested documents:

  • Duly filled and signed application form for the MMUKY scheme
  • Identity proof (Aadhaar card, Voter ID card, or any other government-issued identification document)
  • Address proof (Aadhaar card, ration card, utility bills, or any other proof of address)
  • Age proof (birth certificate, school leaving certificate, or any other document providing proof of their age.
  • Class  passing certificate
  • Income proof (salary slip, income tax return document, or any other relevant financial documents)
  • A detailed business proposal or plan outlining the nature of the business, investment requirements, expected revenue, market analysis, etc.
  • Bank Account Details (account number, bank name, and branch name)
  • In the case of a partnership firm, a partnership deed outlining the terms and conditions of the partnership
  • If the applicant is a taxpayer, then in this case the income tax details of the last 3 years

Application Process of Mukhyamantri Udyam Kranti Yojana

Interested and eligible students can apply for the scheme by following the below-mentioned application process:

Step 1) Visit the official website at

Application Process of Mukhyamantri Udyam Kranti Yojana

Step 2) Navigate to the ‘Create Profile‘ tab.

Step 3) Candidates will be redirected to the ‘Applicant Profile Form‘.

Mukhyamantri Udyam Kranti Yojana - Applicant Profile Form

Step 4) After filling out the relevant information, click on the ‘Next’ tab and log in with the registered mobile number and date of birth.

Step 5) Now, the application form will appear on the screen. It is advised to fill out the application form correctly and ensure that all necessary documents are enclosed.

Step 6) Click on the ‘Submit’ button and ensure to download the application form for future reference.

Note – The designated authority will verify the submitted application and documents to confirm the candidate’s eligibility and assess the viability of the proposed business venture. This may involve conducting background checks and site visits, if required.

Upon successful verification and approval of the application, the loan amount will be sanctioned by the financial institution involved in the scheme. The loan will be disbursed to the designated bank account.

Mukhyamantri Udyam Kranti Yojana – FAQs

Are there any specific industries targeted under the MUKY scheme?

The Mukhyamantri Udyam Kranti Yojana focuses on specific industries based on the economic priorities of the implementing state government. It can vary from state to state, but common sectors of focus include manufacturing, agriculture, services, technology, tourism, and handicrafts.

Does the MUKY scheme offer any support for sustainable business projects?

Yes, the scheme provides incentives and support for businesses that prioritize sustainable or eco-friendly practices. This includes financial assistance, tax incentives, and subsidies for adopting environmentally friendly technologies or implementing green initiatives.

Are there any subsidies or guarantees provided under the MUKY scheme?

Yes, the scheme provides a 3% per year interest subsidy to reduce the financial burden on loan repayment. Additionally, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantee fee is also covered by the government.

How long is the financial assistance provided under the MUKY scheme?

The government provides financial assistance, including the interest subsidy and CGTMSE guarantee fee, for a maximum period of 7 years.

How long does it take for the loan to be sanctioned and disbursed under the MUKY scheme?

The duration may vary, but once the application is successfully verified and approved, the loan amount will be sanctioned by the financial institution involved. The loan will be disbursed to the candidate’s designated bank account.


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