MLUPY is Rajasthan's interest-subsidy scheme for small units: on a bank loan for a manufacturing or service project of up to ₹10 crore (₹1 crore for trading), the state pays 8% of the interest on loans up to ₹25 lakh, 6% up to ₹5 crore and 5% up to ₹10 crore, for five years. It is one of the few schemes that funds trading businesses.
Individuals, proprietors, partnerships, LLPs, companies and self-help groups aged 18 and above can apply; the unit can be new or existing. The subsidy rides on a bank sanction, so the application is really a bank file — project report, Udyam, premises proof, KYC — submitted through the SSO portal to the district industries centre.
On a typical 10% bank rate, the 8% subsidy on a loan under ₹25 lakh leaves the borrower paying about 2% — which is why it is worth applying for before the loan is drawn, not after.
Reviewed to the law in force in FY 2026-27. General information, not advice — confirm the position for your facts before acting.
