Mukhyamantri Yuva Swarozgar Yojana (Rajasthan)

Interest-free loans for young entrepreneurs of Rajasthan — 100% interest subsidy on loans up to ₹10 lakh, margin money grant up to ₹50,000, collateral-free credit with CGTMSE fee reimbursed, and free skill training — aiming to create self-employment for 1 lakh youth.

• •Issued by: Government of Rajasthan · Industries & Commerce (Group-2) Department
• •Notification issued with Finance Department concurrence dated 11/01/2026; digitally signed 15/01/2026
• •Nodal Agency: Office of the Commissioner, Industries & Commerce
• •Valid till 31/03/2029

The Mukhyamantri Yuva Swarozgar Yojana helps native residents of Rajasthan start their own business. A bank or financial institution gives the loan, and the State Government pays 100% of the interest, gives a margin money grant, and reimburses the CGTMSE guarantee fee. The aim is to give self-employment to 1 lakh youth through new micro enterprises.

Individual Applicants

• •Native resident (mool niwasi) of Rajasthan.
• •Age 18 to 45 years.
• •Educational qualification of at least 8th pass — the loan limit depends on the qualification (section 3).

Institutional Applicants (HUF, Society, Partnership, LLP, Company, SHG)

• •Must be registered as per applicable law.
• •51% or more ownership must be held by persons aged 18–45 years.
• •51% or more ownership must also be held by persons who are 8th–12th pass, or graduate / ITI certificate holders, matching the loan category.

Not Eligible

• •Applicants who are defaulters of any bank or financial institution.

Ineligible Activities

A. Maximum Loan with 100% Interest Subsidy

B. Other Assistance

C. Example — Graduate Starting a Manufacturing Unit

• •Use for sanctioned purpose only — the loan can be used only for the work it was sanctioned for.
• •Timely repayment — interest subsidy is paid only if the borrower repays on time. The bank's claim must confirm the borrower is not a defaulter and the project is running; payment follows verification by the DIC General Manager.
• •If the loan turns NPA — interest subsidy and other benefits for that period are payable only after the account is regularised, subject to the sanction order.
• •Margin money is locked for 2 years — it is kept as a short-term deposit with the bank; the bank pays no interest on it and charges none on the equal loan amount. After 2 years of continuous operation without default, and a DIC inspection, it is adjusted into the borrower's loan account.
• •If the unit does not run for 2 years — the bank returns the full margin money to the Department, without interest.
• •Expansion / diversification / modernisation — requires at least a 25% increase in the unit's existing investment.
• •Loan term — maximum 5 years.
• •Timing — benefit is not available if the bank sanctions or disburses the loan before the DIC forwards the application.
• •Higher bank sanction — if the bank sanctions more than the committee approved, benefits apply only to the committee-approved amount.

Penalty for False Information

Mentioned in the Notification

Usually Required (confirm on the portal)

• •Proof of Rajasthan native residence (bonafide certificate)
• •Age proof and Aadhaar
• •Educational qualification certificate (8th/10th/12th marksheet, graduation degree or ITI certificate)
• •PAN, bank account details and photographs
• •Quotations for machinery / equipment and details of premises

• •Step 1 — Apply online: Submit the application to the concerned District Industries & Commerce Centre (DIC) on the Department's online portal.
• •Step 2 — Scrutiny: The committee's member-secretary checks the application and documents.
• •Step 3 — Committee review: A 3-member committee chaired by the DIC General Manager, meeting at least once a week, selects applicants based on education and technical qualification, family / experience-based knowledge, interest and entrepreneurial ability, chances of success and market potential.
• •Step 4 — Forward to bank: Selected applications are sent online to the lending bank branch with the committee's recommendation.
• •Step 5 — Loan sanction & disbursement: The bank sanctions and disburses as per RBI timelines and records the sanction on the portal.
• •Step 6 — Margin money claim: After disbursing a loan of at least the margin money amount, the bank claims the margin money from the DIC; it is kept as a short-term deposit.
• •Step 7 — Interest subsidy claim: The bank claims interest reimbursement from the DIC after every quarter.
• •Step 8 — CGTMSE fee claim: The bank claims the annual CGTMSE fee after each year; the DIC reimburses it online.
• •Step 9 — Margin money adjustment: After 2 years of operation, the bank applies; the DIC inspects and issues the adjustment order, and the amount is credited to the loan account.

Government of Rajasthan, Industries & Commerce (Group-2) Department, Notification — Mukhyamantri Yuva Swarozgar Yojana, with Annexure-A Implementation Guidelines (Finance Department concurrence 11.01.2026; RajKaj Ref. No. 19890347).