Mukhyamantri Swarozgar Yojana Ati Sukshm (Nano) Udhyam offered the residents of Uttarakhand ready bank-linked financial support to set up or expand small nano enterprises. The MSME Department has now merged this scheme along with the other swarozgar schemes into a single bank credit linked scheme called Mukhyamantri Swarojgar Yojana 2.0, and applications for the 2026-27 financial year are being accepted on the official portal.
In simple words, the dedicated Nano Udhyam scheme no longer runs as a separate plan. State government has brought all the self-employment schemes under one roof so that a person gets a single window to receive bank loans and margin money. This update tells what the new MSY 2.0 rules say, who can apply, and how to submit an online application.
Mukhyamantri Swarozgar Yojana Ati Sukshm (Nano) Udhyam - Introduction
Mukhyamantri Swarojgar Yojana 2.0 has been made effective from the financial year 2025-26 to 2029-30 by the Micro, Small and Medium Enterprises Department, Government of Uttarakhand. It came after the department merged the earlier Mukhyamantri Swarojgar Yojana and the Mukhyamantri Swarojgar Yojana (Nano) so that benefits are not repeated and women entrepreneurship gets a bigger push.
The scheme is run by the Directorate of Industries at the state level and by the District Industry Centres at the district level. It offers loans up to ₹25 lakh for manufacturing units and up to ₹10 lakh for service and trade businesses. Government pays margin money on the approved project cost, and the goal is to link more than 50,000 eligible people to self-employment during the scheme period.
Key Information
| Scheme Name | Mukhyamantri Swarojgar Yojana 2.0 (MSY 2.0) |
|---|---|
| Level | State |
| Beneficiary State | Uttarakhand |
| Category | Business & Entrepreneurship |
| Loan Limit | Up to ₹25 lakh (manufacturing), up to ₹10 lakh (service and trade) |
| Margin Money Subsidy | 15% to 30% of project cost |
| Scheme Period | FY 2025-26 to 2029-30 |
| Main Department | MSME Department, Government of Uttarakhand |
| Operating Agency | Directorate of Industries / District Industry Centres |
| Application Mode | Online |
| Official Website | msy.uk.gov.in |
Benefits
Under the new MSY 2.0 rules, banks sanction 90% of the project cost as loan for general category applicants and 95% for special category applicants, which includes SC, ST, OBC, minority, ex-servicemen, women and disabled persons. The beneficiary contributes the remaining amount, 10% for general and 5% for special category.
Government pays margin money as per the location of the project. For Category A and B districts, the eligible people get 30% subsidy on project cost up to ₹2 lakh, 25% on the part between ₹2 lakh and ₹10 lakh, and 20% on the part between ₹10 lakh and ₹25 lakh. For Category C and D districts, the subsidy is 25%, 20% and 15% on the same slabs.
There is also an additional margin money of 5% for projects set up in rural and notified Nagar Panchayat areas, for women and disabled beneficiaries, and for units making ODOP, ODTP or GI tagged products of the state. Only one such booster applies to a single project. Small entrepreneurs also get marketing help through fairs, the GeM portal and the Himadri Emporium.
Eligibility
Anyone who wants to set up a new enterprise or expand an existing one can apply, provided the following conditions are met:
- Applicant must be aged 18 years or more at the time of application.
- Applicant should be a permanent or native resident of Uttarakhand and must submit a residence certificate from the competent level.
- Applicant should not be a defaulter of any nationalized, cooperative or recognized bank or financial institution.
- Only one member from a family, as defined in the scheme, can get the benefit and a person can avail it only once.
- There is no minimum educational qualification for this scheme.
- The proposed project must be commercially viable and under the permitted activities.
Application Process
The facility to apply is fully online through the official portal at msy.uk.gov.in.
STEP 1 - Go to the official website at msy.uk.gov.in and register as a new user. Fill in the applicant details and create the login for the portal.
STEP 2 - Log in and select the scheme Mukhyamantri Swarojgar Yojana 2.0. Prepare the project report, which can be self-attested for projects up to ₹10 lakh and certified by a Chartered Accountant for projects above that amount.
STEP 3 - Upload all the required self-attested documents along with the online application form and submit it before the portal.
STEP 4 - The District Industry Centre checks the application within 3 working days and the district level scrutiny committee selects the beneficiaries on a first come first serve basis.
STEP 5 - Selected applications are forwarded online to the bank, which decides on the loan as per RBI time limits. The bank disburses the loan and the margin money claim is sent to the District Industry Centre.
STEP 6 - Government keeps the margin money as a Term Deposit and, after successful operation of the project for two financial years and a joint physical inspection, the margin money is adjusted as subsidy in the loan account.
Documents Required
Keep the following documents ready because self-attested copies have to be uploaded on the portal:
- Copy of the Aadhaar card of the applicant.
- Copy of the permanent or native residence certificate.
- Project report of the proposed enterprise, certified as per the project cost.
- Passport size photograph, not more than 6 months old.
- Certificate from the competent level for special category benefits, if applicable.
- Affidavit on stamp paper stating that all the details are correct and complete.
- Copy of the lease deed if the workshed or shop is on rent, and current quotations for plant, machinery or construction.
References
Official MSY 2.0 Notification PDF
Mukhyamantri Swarojgar Yojana Official Portal
FAQ's
Is the Nano Udhyam scheme still running separately?
No. The earlier Mukhyamantri Swarojgar Yojana and the Nano Udhyam scheme have been merged into Mukhyamantri Swarojgar Yojana 2.0, and new applications are taken only under MSY 2.0.
How much loan can I get under MSY 2.0?
Loan up to ₹25 lakh is available for manufacturing units and up to ₹10 lakh for service and trade businesses, subject to the project being viable.
Who can apply for this scheme?
A permanent or native resident of Uttarakhand aged 18 years or more who is not a defaulter and has not taken benefit under the scheme earlier can apply.
How is the margin money subsidy given?
Government deposits the margin money as a Term Deposit and it is adjusted as subsidy in the bank loan account after the project runs successfully for two financial years.
Where do I submit my application?
Applications are submitted online through the official portal at msy.uk.gov.in.