๐ Rajasthan Government Scheme — Industries & Commerce Department
เคตเคฟเคถเฅเคตเคเคฐเฅเคฎเคพ เคฏเฅเคตเคพ เคเคฆเฅเคฏเคฎเฅ เคชเฅเคฐเฅเคคเฅเคธเคพเคนเคจ เคฏเฅเคเคจเคพ
Vishwakarma Yuva Udyami Protsahan Yojana 2025 — Complete Guide for Young Entrepreneurs
Loan up to โน2 Crore
Interest Subsidy up to 8% p.a.
Margin Money 25% or โน5 Lakh
Loan Tenure up to 7 Years
Collateral Free Loans
What is this Scheme?
The Vishwakarma Yuva Udyami Protsahan Yojana is a landmark initiative by the Rajasthan Government’s Department of Industries & Commerce (Group-2). It provides subsidised loans and financial assistance through empanelled banks to help young entrepreneurs โ aged 18 to 45 โ start, expand, diversify, or modernise their manufacturing or service-based enterprises across Rajasthan.
The scheme channels financial support via margin money subsidies and interest subsidies, making credit significantly cheaper for first-generation and young entrepreneurs. Both individual applicants and institutional entities (HUF, Society, Partnership Firm, LLP, Company) are covered.
The notification was issued under Order No. P.1(6)Udyog/Group-2/2025/06495, digitally signed by Deputy Secretary to Government (Mahipal Kumar), and is effective until 31 March 2029.
Key Financial Benefits at a Glance
โน2 Cr
Maximum Loan Amount
For land, plant, machinery, building, furniture & working capital
8%
Interest Subsidy (up to โน1 Cr)
On timely repayment; 7% for loans above โน1 Cr up to โน2 Cr
25%
Margin Money Subsidy
25% of loan or โน5 lakh, whichever is lower
7 Yrs
Maximum Loan Tenure
With up to 6 months moratorium period available
Zero
Collateral Requirement
No collateral beyond RBI limits; CGTMSE coverage available
+1%
Extra Interest Subsidy
For women, SC/ST, Divyangjan, rural & artisan card holders
Eligibility Criteria
โ
Who Can Apply?
- Individual applicants aged 18 to 45 years
- HUF, Society, Partnership Firm, LLP Firm, or Company โ with at least 51% ownership held by persons aged 18โ45
- Enterprises qualifying as Micro and Small Enterprises under GOI definition at time of application
- Existing enterprises seeking expansion, diversification, or modernisation
- If a family member is a Director in a company that availed scheme benefits, a different company of the same family is also eligible
โ Who is NOT Eligible?
- Applicants who are bank defaulters or wilful defaulters of any financial institution
- Enterprises that availed capital subsidy or interest subsidy from any Central/State Government scheme in the last 5 years under the same benefit head
โ ๏ธ
5-Year Subsidy Trap โ Consult Your CA FirstIf your business has received any government subsidy in the last 5 years, a pre-application eligibility audit is essential before filing. A wrong application can lead to disqualification and recovery with 18% penal interest.
Loan & Subsidy Details
Interest Subsidy Rates
| S.No. | Maximum Loan Amount | Interest Subsidy |
|---|---|---|
| 1 | Up to โน1 Crore | 8% per annum |
| 2 | Above โน1 Crore up to โน2 Crore | 7% per annum |
โ
Additional 1% for Special CategoriesWomen entrepreneurs, SC/ST, Persons with Benchmark Disabilities (Divyangjan), rural area enterprises, and artisan card holders receive an extra 1% interest subsidy. If the bank’s actual interest rate equals or is less than the subsidy rate, 100% of interest is subsidised.
Margin Money Subsidy
The margin money subsidy is the lesser of 25% of the loan amount or โน5 lakh. Released to the borrower’s account after 3 years of continuous operation and departmental verification of no default.
Loan Structure
| Parameter | Details |
|---|---|
| Loan Type | Composite (Term Loan + WC) or Term Loan only |
| Working Capital | Only as CC Limit |
| Max Working Capital in Composite | Up to 30% of project cost |
| Applicant’s Own Contribution | Minimum 10% of project cost |
| Land & Building Subsidy Cap | Interest subsidy on max 25% of total loan |
| Maximum Loan Tenure | 7 years |
| Moratorium Period | Up to 6 months |
| Interest Subsidy Period | Up to 5 years from commencement of production |
โน๏ธ
CGTMSE Coverage AvailableAll loans under this scheme are eligible for coverage under the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE). The guarantee fee is borne by the applicant and is an allowable deduction under the Income Tax Act.
Empanelled Lending Institutions
| S.No. | Institution Type |
|---|---|
| 1 | Nationalised Commercial Banks |
| 2 | RBI-Authorised Private Sector Scheduled Commercial Banks & Small Finance Banks |
| 3 | Regional Rural Banks (Kshetriya Gramin Banks) |
| 4 | Rajasthan Finance Corporation (RFC) |
| 5 | SIDBI |
| 6 | Urban Co-operative Banks & Central Co-operative Banks |
โ ๏ธ
Financial institutions cannot directly approve loans under this scheme. All applications must first be recommended by the District Level Task Force Committee (DLTFC) before being forwarded to the bank.
How to Apply โ Step-by-Step
1
Prepare Your Project Report / DPR
Get a professionally prepared Detailed Project Report (DPR) and CMA data from a Chartered Accountant. The sanctioned loan amount is based entirely on this report.
2
Apply Online via the Designated Portal
Submit your application through the online portal of the Department of Industries & Commerce, Rajasthan. Your local DICC can assist with filing.
3
DLTFC Screening & Recommendation
The District Level Task Force Committee scrutinises and recommends your application. Only DLTFC-recommended applications proceed to the financial institution.
4
Bank Processing & Loan Sanction
The financial institution processes the application and sanctions the loan. CGTMSE coverage can be added. No collateral beyond RBI limits will be demanded.
5
Commence Operations & Timely Repayment
Interest subsidy is payable only after commencement of operations. Timely EMI repayment is essential. Margin money is released after 3 years of continuous operation.
Activities NOT Covered Under This Scheme
The following businesses are ineligible under this scheme regardless of other factors:
- Manufacture/sale of meat, liquor or intoxicants
- Explosives manufacturing
- Commercial transport vehicles (on-road price > โน15 lakh)
- Prohibited products (Central/State Govt. bans)
- Agriculture & allied activities (poultry, fishery, animal husbandry)
- Mining activities
- Real estate activities
- Activities by NGOs, Trusts or charitable institutions
CA’s Corner โ Professional Insights
As a CA practising in Rajasthan, this scheme opens significant advisory opportunities for your MSME clients. Key professional considerations:
โ๏ธ Professional Insights for CA Practitioners
01
Tax Treatment of Government Grants (AS-12)
Margin money subsidy and interest subsidy must be accounted for under AS-12. Their taxability under the Income Tax Act โ whether capital or revenue receipt โ requires careful professional guidance.
02
GST Implications on Subsidy
Any subsidy linked to the price of goods or services could attract GST under Section 15(2)(e) of the CGST Act, 2017. GST registration compliance from commencement of operations is non-negotiable.
03
CGTMSE Guarantee Fee โ Allowable Deduction
The CGTMSE guarantee fee is an allowable deduction under the Income Tax Act. Proper documentation at loan sanction ensures this deduction is not lost.
04
5-Year Prior Subsidy Audit
Disqualification due to prior subsidy in the last 5 years is the most common pitfall. Conduct a pre-application subsidy audit. A fraudulent claim leads to 18% penal interest recovery.
05
DPR Quality Directly Affects Loan Quantum
The sanctioned amount is based entirely on the project report. A professionally prepared CMA data and DPR by a CA significantly improves DLTFC recommendation and bank approval probability.
Frequently Asked Questions
What is the maximum loan available under Vishwakarma Yuva Udyami Protsahan Yojana?
The maximum loan amount is โน2 crore per beneficiary unit for manufacturing and service-based enterprises, covering land, plant, machinery, building, furniture, equipment, and working capital.
What is the age limit to apply?
Individual applicants must be between 18 and 45 years. For institutions (HUF, Society, Firm, LLP, Company), at least 51% ownership must be held by persons aged 18โ45.
Is collateral required?
No collateral beyond RBI prescribed limits will be demanded. All loans are eligible under CGTMSE. The guarantee fee is borne by the applicant.
Can an existing enterprise apply for expansion or modernisation?
Yes. Existing enterprises can avail this scheme for expansion, diversification, or modernisation. Interest subsidy for expansion is payable only on the incremental loan and working capital.
When is margin money subsidy released?
After 3 years of continuous enterprise operation and departmental verification of no default. If the enterprise does not operate for 3 years, the margin money is returned to the department without interest.
What if my loan account becomes NPA?
If subsequently regularised, interest subsidy for the eligible period is still payable, subject to the terms of the original loan sanction order.
What is the appeal mechanism if my application is rejected?
Any applicant can appeal to the Ayukta (Commissioner), Department of Industries & Commerce, Rajasthan. The Commissioner’s decision is final.
Where do I submit my application?
Through the online portal of the Department of Industries & Commerce, Rajasthan. Your local District Industries & Commerce Centre (DICC) can assist.