Vishwakarma Yuva Udyami Protsahan Yojana (VYUPY) Rajasthan – Loan up to ₹2 Crore & 8% Interest Subsidy

To promote entrepreneurship, self-employment, and sustainable economic growth among young people, the Government of Rajasthan has launched a powerful initiative known as the Vishwakarma Yuva Udyami Protsahan Yojana (VYUPY). This flagship scheme is designed to empower youth by providing financial assistance, interest subsidy, and margin money support to help them start or expand their businesses.

With benefits such as loans up to ₹2 crore, interest subsidy up to 8%, and margin money grant, VYUPY serves as a strong foundation for aspiring entrepreneurs, MSMEs, artisans, and rural industries across Rajasthan.

What is the Vishwakarma Yuva Udyami Protsahan Yojana (VYUPY)?

The Vishwakarma Yuva Udyami Protsahan Yojana is a Rajasthan Government–backed entrepreneurship promotion scheme aimed at transforming youth from job seekers into job creators. The scheme focuses on encouraging youth-led enterprises by reducing financial risk and improving access to institutional credit.

VYUPY supports:

• New business establishment

• Expansion of existing MSMEs

• Modernization and technology upgradation

• Traditional, rural, and handicraft industries

The scheme plays a vital role in strengthening Rajasthan’s industrial and employment ecosystem.

Objectives of VYUPY

The key objectives of the Vishwakarma Yuva Udyami Protsahan Yojana include:

• Encouraging youth entrepreneurship and self-employment

• Supporting Micro, Small, and Medium Enterprises (MSMEs)

• Promoting traditional industries, artisans, and handicrafts

• Facilitating modernization and adoption of new technology

• Creating long-term employment opportunities

• Driving inclusive and sustainable economic growth

Business Activities Covered Under VYUPY

The scheme covers a wide range of business activities, making it suitable for diverse entrepreneurial ideas.

1. New Business Establishment

Youth planning to start a new enterprise in manufacturing, services, or rural industries can avail benefits under the scheme.

2. Expansion of Existing Enterprises

Existing MSMEs can apply for financial assistance to scale operations, increase production capacity, or diversify business activities.

3. Modernization and Technology Upgradation

The scheme supports the purchase of modern machinery, equipment, and technology to enhance productivity, quality, and competitiveness.

4. Traditional and Rural Industries

Special emphasis is given to:

• Artisans

• Weavers

• Handicraft workers

• Cottage and village industries

Key Features and Benefits of Vishwakarma Yuva Udyami Protsahan Yojana

1. Loan Assistance up to ₹2 Crore

Under VYUPY, eligible youth entrepreneurs can avail business loans of up to ₹2 crore. This high loan limit enables both small and large-scale MSME projects to take shape across various sectors.

2. Interest Subsidy up to 8%

One of the most attractive benefits of the scheme is the interest subsidy of up to 8%, provided by the Rajasthan Government. This significantly reduces the effective interest rate on business loans and makes EMIs more affordable for entrepreneurs.

3. Margin Money Grant Support

To reduce the burden of initial investment, the scheme offers margin money assistance, which is calculated as:

• 25% of the total project cost, or

• Maximum ₹5 lakh,
  whichever is lower.

This feature is particularly helpful for first-time entrepreneurs who may face capital constraints.

4. Additional 1% Interest Subsidy for Special Categories

The scheme promotes inclusive growth by offering an additional 1% interest subsidy on loans above ₹1 crore to the following categories:

• Women entrepreneurs

• SC/ST applicants

• Divyang (Persons with Disabilities)

• Rural youth

• Artisans and traditional craft workers

This additional support ensures equal opportunities for underrepresented groups.

5. Scheme Validity Till March 2029

The Vishwakarma Yuva Udyami Protsahan Yojana is valid until 31 March 2029, providing long-term policy stability and confidence to entrepreneurs planning their business ventures.

Eligibility Criteria for Vishwakarma Yuva Udyami Protsahan Yojana

Applicants must meet the following eligibility conditions to apply under VYUPY:

• Age should be between 18 and 45 years

• Applicant must be a permanent resident of Rajasthan

• Applicant must hold at least 51% ownership in the business (for partnership firms, LLPs, or companies)

• Business should fall under the MSME sector (manufacturing, services, or traditional industries)

• Applicant must not be a defaulter with any bank or financial institution

• Both new and existing enterprises are eligible

Why VYUPY is a Game Changer for Rajasthan’s Youth

The Vishwakarma Yuva Udyami Protsahan Yojana stands out because it:

• Reduces financial barriers for young entrepreneurs

• Encourages innovation and modernization

• Supports traditional and rural industries

• Generates local employment opportunities

• Strengthens Rajasthan’s MSME ecosystem

By combining credit access with government-backed subsidies, the scheme creates a supportive environment for youth entrepreneurship.

Conclusion

The Vishwakarma Yuva Udyami Protsahan Yojana (VYUPY) is a transformative initiative by the Government of Rajasthan, designed to empower youth with financial support, interest subsidy, and margin money assistance. Whether you aim to start a new business, expand an existing MSME, or modernize your enterprise, this scheme can significantly reduce financial challenges and accelerate growth.

For Rajasthan’s aspiring entrepreneurs, VYUPY is more than a scheme—it is an opportunity to build sustainable businesses and contribute to the state’s economic development.

Need Expert Help with Vishwakarma Yuva Udyami Protsahan Yojana?

At The Tax Heaven, we help entrepreneurs understand, apply for, and maximize benefits under government subsidy and loan schemes like VYUPY.

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We provide:

• Eligibility assessment

• Project report preparation

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Planning to start or expand your business?
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