MYSY provides interest-free project loans to young entrepreneurs in Rajasthan, with the State bearing the entire interest cost. The loan you can take is not a single figure — it is set by two things together: your education level and whether you are in manufacturing or in service and trade. Getting that pairing right is the whole planning exercise.
At a glance
| Launched | 12 January 2026 |
| Operative period | Until 31 March 2029 |
| Administering department | Industries and Commerce Department, Government of Rajasthan |
| Who it covers | Permanent residents of Rajasthan aged 18 to 45, starting or expanding a micro-enterprise in manufacturing, service or trade |
| Headline benefit | Interest-free project loan up to ₹10 lakh, with 100% of the interest borne by the State |
| Security | Collateral-free, backed under the CGTMSE framework — the State reimburses the credit guarantee fee |
| Repayment | Up to 5 years |
| Apply through | Rajasthan SSO Portal, or any E-Mitra centre |
Check these before you apply
Loan limits by qualification and sector
| Qualification | Sector | Maximum loan | Margin money |
|---|---|---|---|
| Class 8 to Class 12 pass | Service & Trade | ₹3.5 lakh | 10%, capped ₹35,000 |
| Manufacturing | ₹7.5 lakh | ||
| Graduate / ITI / higher | Service & Trade | ₹5 lakh | 10%, capped ₹50,000 |
| Manufacturing | ₹10 lakh |
The two variables that set your ceiling
A graduate opening a trading business gets ₹5 lakh. The same graduate setting up a manufacturing unit gets ₹10 lakh. A Class 12 pass in manufacturing gets ₹7.5 lakh — more than a graduate in trade. Education alone does not determine the limit, and neither does sector: it is the combination. If your business could plausibly be structured as manufacturing rather than trade, that classification is worth settling before the project report is written, not after.
What the State actually pays for
- 100% interest subsidy — the State reimburses the entire interest charged by the bank. You repay principal only.
- Margin money support — 10% of project cost, capped at ₹35,000 or ₹50,000 depending on your tier.
- Credit guarantee fee — reimbursed by the State, so CGTMSE cover costs you nothing.
- No collateral — in line with RBI directives, no third-party security is required.
- Skill training — free short-term entrepreneurial training through the Rajasthan Skill and Livelihoods Development Corporation (RSLDC).
Documents required
- Aadhaar card
- Rajasthan domicile certificate (or Jan Aadhaar)
- Educational certificates — Class 8, 10, 12, ITI or degree, matching the tier you are claiming
- Project report or business plan covering the business idea, setup cost and projected earnings
- Bank passbook first page, or a cancelled cheque of an active account
- Recent passport-size photograph
Where these applications usually come apart
- An existing default or overdue account at any bank — this is checked, and it disqualifies outright.
- Having already taken PMEGP or a similar self-employment subsidy.
- Applying under the graduate tier without the certificate to evidence it.
- Age outside the 18–45 band at the date of application.
- Domicile documentation that does not match the name on other papers.
- A project report that does not support the loan amount sought — the bank still underwrites the proposal on its merits.
One honest caveat
The interest subsidy makes this cheap money, but it is still a loan and the bank still has to sanction it. The State subsidises the cost; it does not underwrite the decision. A weak or unrealistic project report fails here for exactly the reasons it would fail anywhere else — which is where preparation earns its keep.
Compiled from published information on the Mukhyamantri Yuva Swarozgar Yojana, Industries and Commerce Department, Government of Rajasthan. Pending verification against the notification dated 12 January 2026.