§1Who it is for

  • Residents of Uttarakhand - youth, migrants, artisans, unemployed, small traders, street vendors - starting a bank-financed unit

Useful if

Uttarakhand residents starting small bank-funded units, especially in hill districts.

Do not spend time on it if

Projects above ₹25 lakh; past beneficiaries of self-employment schemes in last 5 years.

§2Eligibility

  1. Minimum age 18
  2. Permanent or native resident of Uttarakhand (certificate needed)
  3. Not a defaulter of any bank/financial institution/government institution
  4. Applicant or family member not benefited under this scheme earlier; one member per family (husband-wife and unmarried children under 21)

Benefit only once per person

  1. No benefit from any other central/state self-employment scheme in last 5 financial years (older non-defaulters may get expansion finance)

No minimum education

  1. Project must be commercially viable and in permitted activities (not traditional agriculture or prohibited activities)
  2. Affidavit on eligibility

§3Benefits

  • Margin money (subsidy) on bank loan: 15%-30% of project cost by area and slab, plus 5% booster

§4Norms — pattern of assistance

  1. Max project cost: manufacturing ₹25 lakh; service ₹10 lakh; trade/other business ₹10 lakh (extra cost borne by entrepreneur, not counted for subsidy)
  2. Own contribution: 10% general; 5% special category (SC, ST, OBC, minority, ex-servicemen, women, disabled)
  3. Bank loan: 90% (general) / 95% (special) of project cost
  4. Margin money - Category A & B areas: 30% (project up to ₹2 lakh), 25% (₹2-10 lakh), 20% (₹10-25 lakh); Category C & D: 25%, 20%, 15%
  5. Booster +5% (only one of): rural/notified Nagar Panchayat area; women and disabled; ODOP/ODTP/GI product manufacturing
  6. Margin money kept as TDR in bank (no interest charged on that part); adjusted as subsidy after 2 financial years of successful operation and joint inspection
  7. Projects above ₹10 lakh need CA-certified project report
  8. Banks to decide within 2 weeks (up to ₹5 lakh) / 3 weeks (₹5-25 lakh)

§5Documents

Tick each one as you get it ready.

Permanent/native residence certificate

§6How to apply

  1. 1

    Online application on the MSY portal

  2. 2

    DIC scrutiny within 3 working days

  3. 3

    District scrutiny committee (GM DIC chair, LDM) selects - no mandatory interview; first come first serve within targets

  4. 4

    Forwarded online to bank

§7Pros and cons

Merits

  • Up to 35% subsidy in hill areas (30% + 5% booster) for small projects
  • Fixed bank decision timelines written into the scheme

Demerits

  • Subsidy is only adjusted after 2 years of running without default
  • Project caps of ₹25 lakh (manufacturing) and ₹10 lakh (service/trade)

→Related schemes

Need help with MSY 2.0?

Eligibility check, DPR and application file — ask us on WhatsApp.

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Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. Uttarakhand Mukhyamantri Swarojgar Yojana 2.0 notification (Mar 2025)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.