Rajasthan MYSY Loan Scheme 2026: Get Interest-Free Loan Up to ₹10 Lakh Without Guarantee

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Rajasthan MYSY Loan Scheme 2026: Are you a resident of Rajasthan dreaming of starting your own start-up or small business, but a lack of funds remains a hurdle, The Rajasthan government has launched the Chief Minister’s Youth Self-Employment Scheme (MYSY) to empower youth to become job creators, not job seekers.

This revolutionary scheme, effective January 11, 2026, offers youth in the state an interest-free loan of up to ₹10 lakh to set up their own businesses. The most important feature is that this loan requires no bank guarantee, and the government will bear the entire interest expense. This scheme will remain in effect until March 31, 2029, offering a golden opportunity for youth.

Why is the Youth Self-Employment Scheme Special

This scheme, run by the Department of Industry and Commerce of the Rajasthan government, aims to create new self-employment opportunities in the state. Often, young people, despite having ideas, are put off by high interest rates and cumbersome bank procedures.

Through this scheme, the government is providing interest-free funding to young people to start new businesses or expand existing ones in the manufacturing and service sectors. The government will also manage the credit guarantee fee and margin money, eliminating the need for a bank guarantee.

Who can benefit

Several important eligibility criteria have been established to benefit from this scheme:

  • Applicants must be between 18 and 45 years of age.
  • If a company, society, or self-help group (SHG) is applying, at least 51% of the stake must be held by young people in this age group.
  • Applicants must not be in default with any bank.
  • If you own a commercial vehicle worth more than ₹15 lakh, you will not be eligible for this scheme. Furthermore, loans will not be granted for businesses prohibited by the state or central government.

How much will be the loan amount

The government has set loan limits based on your educational qualifications and business type:

Youth with 8th to 12th grade education

If you fall into this category, you can get a maximum loan of ₹7.50 lakh for setting up a manufacturing unit and up to ₹3.50 lakh for a service sector or small business. Additionally, you will receive government assistance in the form of a margin money of 10% of the loan amount or a maximum of ₹35,000.

Graduates, ITI graduates, or higher-educated youth

For highly educated youth, loans of up to ₹10 lakh are available in the manufacturing sector and up to ₹5 lakh in the service or business sector. The margin money amount is 10% of the loan amount or a maximum of ₹50,000.

Special:- This margin money is a type of government subsidy that remains in the form of a fixed deposit for two years. If you successfully run your business for two years and pay your bank installments on time, this money is transferred to your account.

Online Application Process

Applying for the Mukhyamantri Yuva Swarojgar Yojana is now extremely simple. You can fill out the form from home using your SSO ID by following these steps:

  1. First, create your SSO ID by visiting sso.rajasthan.gov.in. You can use your Aadhaar number or Gmail ID for registration.
  2. After logging in, select the ‘Citizen’ or ‘Udyog’ option and search for the Mukhyamantri Yuva Swarojgar (MYSY) app.
  3. Enter your personal information, educational documents, proof of residence, and location of your proposed business in the application form.
  4. Upload your business’s project plan (DPR) and other required documents by scanning them.
  5. After filling in all the information correctly, submit the form. After verification by the department, your loan will be processed.