If you’re a young person in Rajasthan dreaming of starting your own business but worried about money, here’s some real hope. The state government has launched the Mukhyamantri Yuva Udyami Protsahan Yojana 2025 a scheme designed to support educated, unemployed youth with financial help so they can set up their own enterprises.
Let’s take a moment to break this down together, because this isn’t just another government announcement. For someone who wants to stand on their own feet, this could be life-changing.
When Did the Scheme Start and Who Can Benefit?
The Yuva Udyami Protsahan Yojana was first introduced in 2023. Now in 2025, the government has widened its reach so that more young people can take advantage of it.
But there’s one key point: this benefit is only available to permanent residents of Rajasthan.
Eligibility Rules You Should Know
Before applying, here are the main conditions you need to meet:
- Age should be between 18 and 35 years.
- You must have at least a graduate degree.
- The loan is meant for starting a new business, not for expanding or modernizing an existing one.
Loan Amount and Interest Subsidy
Here’s what’s really going on with the loan facility:
- You can get up to ₹1 crore in financial assistance.
- For loans up to ₹25 lakh, the government will provide an 8% interest subsidy.
- For loans between ₹25 lakh and ₹1 crore, the subsidy will be 6%.
- The subsidy benefit is available for a maximum of seven years.
- The best part? No collateral or guarantee is required.
Margin Money Assistance
To make it easier to raise initial capital, the scheme also provides margin money support:
General category applicants: Up to 10% (maximum ₹5 lakh).
SC/ST applicants: Up to 15% (maximum ₹5 lakh).
But there’s a condition—you must run the business for at least three years to keep this benefit.
Sectors Covered Under the Scheme
The scheme is not limited to one type of business. It covers:
- Manufacturing
- Services
- Trading
For transport businesses, there’s a limit of two commercial vehicles with a maximum cost of ₹15 lakh each.
Also, up to 75% of the project cost can be funded through the loan.
Moratorium Period – Relief for New Entrepreneurs
Starting a business takes time. To make it less stressful, the government has allowed a 6-month moratorium period. During this time, you don’t need to worry about loan repayment. It gives you breathing space to establish your business.
Which Sectors Are Excluded?
The scheme avoids industries considered harmful or unsuitable for subsidy. These include:
- Alcohol and tobacco production
- Fireworks and polythene products
- Real estate and mining activities
- Educational institutions
This shows the government’s focus on promoting sustainable and socially useful businesses.
Quick Facts – What You Should Remember
- Loan limit: Up to ₹1 crore
- No guarantee required
- Interest subsidy: 6% to 8% (for 7 years)
- Margin money: Up to ₹5 lakh
- Moratorium: 6 months grace period