Mukhyamantri Krishak Udyami Yojana

Why it matters

Farmers and their educated sons/daughters can get subsidised loans up to ₹2 crore to set up an agro-processing or food business.

What you get

Implemented since 23 April 2018, this scheme promotes self-employment among farmers and the educated children of farmers by financing new agri-based enterprises such as agro-processing, food processing, cold storage, milk processing, cattle feed, and poultry feed units. Project costs can range from ₹50,000 up to ₹2 crore. General-category beneficiaries receive margin-money assistance of 15% of the project cost up to a maximum of ₹12 lakh, while BPL families receive 20% up to ₹18 lakh. An interest subsidy of 5% is offered to male entrepreneurs and 6% to women entrepreneurs, for up to seven years. Applicants must be aged 18–40, be MP residents, and the applicant's family must not own agricultural land that would disqualify them, nor be income-tax payers or loan defaulters.

Eligibility criteria

• Age between 18 and 40 years
• Permanent resident of Madhya Pradesh
• Applicant or family should not be an income-tax payer
• Should not be a defaulter with any bank or financial institution
• Project must fall in an eligible agro/food-processing category

How to apply

1. 1

   Prepare a Chartered-Accountant-certified detailed project report (DPR)

2. 2

   Apply online via the MP Online portal or district MSME facilitation centre

3. 3

   Submit identity, residence, and educational documents along with the DPR

4. 4

   On approval, the bank sanctions the term loan with margin-money and interest subsidy applied

Documents required

• 10th class mark sheet
• Aadhaar card
• Voter ID card
• Ration card
• Income and caste certificate (if applicable)
• Residence certificate
• Bank passbook
• Detailed Project Report (CA-certified)
• Passport-size photograph