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Mukhyamantri Laghu Udhyog Protahasan Yojna 2019 (MLUPY-Rajasthan Government)

Overview of the Scheme:

  • Name: Muhyamantri Laghu Udhyog Prohtasahan Yojna.
  • Objective: Main objective of the scheme is to provide low cost loan to establish new business for Manufacturing, Service and Trading or to Expand/ Diversify/ Modernize old business so as to create new opportunities of employment in the state (Rajasthan).
  • Duration: 17 December 2019- 31 March 2024.
  • Area of Business: Rajasthan only.

Benefits Available:

Benefits under the scheme is given in the form of interest subvention that means low cost loan is given. The rate of interest subvention (benefit) depends upon the loan amount which is as follows:

  S. No.  Maximum Loan AmountRate of Interest Subvention
1Upto Rs. 25 Lacs8%
2Rs. 25 Lacs- Rs. 5 Crores6%
3Rs. 5 Crores- Rs. 10 Crores5%


  1. Under the scheme, for the purpose of establishing new business for Manufacturing and Service loan amount of maximum Rs. 10 crores can be provided. For trading purpose, whether wholesale or retail, maximum loan amount would be Rs. 1 crores.
  2. For the purpose of Expanding/ Diversifying/ Modernizing old business loan amount of maximum Rs. 1 crores can be provided. {added later on through amendment}
  3. For the purpose of acquiring land, maximum 25% of the total loan amount would be eligible for interest subvention. {added later on through amendment}
  4. For the purpose of manufacturing or service, loan can be taken in only term loan form or composite form (term loan + CC) and for the purpose of trading, loan can be taken in only term loan form, composite form (term loan + CC) or only in CC form (maximum Rs. 25 lacs in this case). {added later on through amendment}
  5. In composite loan maximum 40% CC Limit is allowed for Manufacturing and Service sector. For Trading sector, maximum 75% CC Limit is allowed in composite loan. {added later on through amendment}
  6. 100% subvention of interest would be given for loan upto Rs. 1 lac to Bunkars holding Bunkar Card.
  7. The subvention/benefit is available for a period of 5 years. Loan can be taken for a higher period but subvention period is maximum for 5 years.
  8. Moratorium period can be taken maximum for 6 months. In moratorium period also, subvention will be available.


Eligible Person:

  • Proprietor: must be 18 or above 18 years of age.
  • Self Help Groups: must be registered in any department of state government.
  • Society, Partnership Firm, L.L.P., Company:  must be registered as per applicable laws.
  • For Self Help Groups and Society some other conditions are also there including that all the members must be resident of Rajasthan and a minimum of 1 year must be passed since their establishment.

Ineligible Person:

  • A person whose other family member has been benefited from any employment generation program/ scheme of central/ state government in last 5 years.
  • A person whose other family member has defaulted to a financial institution/ bank.
  • Family means- husband, wife, minor child.

Eligible Activity:

The purpose of loan can be any activity relating to Manufacturing, Service or Trading industry. The benefit is available to a new enterprise or old enterprise going for Expansion/ Diversification/ Modernization.

Ineligible Activity:

  • Manufacturing or Trading of Meat, Alcoholic and Drugs and Intoxicating substances.
  • Explosive Products.
  • Vehicles whose on-road price is more than 10 Lacs.
  • Non- recyclable polythene and plastics hazardous to environment.
  • Those products/ activities banned by Central Government/ State Government from time to time.
  • Agriculture and related activities. {added later on through amendment}
  • Mining, Real Estate related activities. {added later on through amendment}
  • Coaching institutes and Coaching related activities. {added later on through amendment}
  • Non Profit Organization viz NGO or Trust. {added later on through amendment}


Q: If the interest rate charged by bank is equal or less than the subvention available, then what will be the quantum of subvention?

A: 100% of interest in that case would be covered under subvention.

Q: Is the scheme applicable on loans taken under Mudra Yojna?

A: Yes.

Q: How to apply?

A: Application under this scheme is to be given online.

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4 thoughts on “Mukhyamantri Laghu Udhyog Protahasan Yojna 2019 (MLUPY-Rajasthan Government)

  1. Rajeev says:

    How much minimum percentage contribution required to avail this scheme?

  2. Kailash Mehta says:

    pl send me detail how i can apply

  3. Kailash Mehta says:

    how can i apply pl. send me detail

  4. Usha Kanwar Gopal Singh Rathore says:

    I want Loan through this scheme but don’t know where to apply. I went to bank. They told me panchayat will approve. I went panchayat they told me you are not live in parshad area they are working for villages.

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