How Rajasthan’s Government Loan Schemes Are Powering Startups & MSMEs in 2025

Wondering if government schemes actually lead to funding? Rajasthan has the receipts.

As of mid-2025, Rajasthan’s flagship initiatives like iStart and MLUPY have collectively supported over 800 startups and more than 230 MSMEs with direct funding. Under iStart, ₹40.95 crore has been disbursed in grants to startups across various sectors, helping over 6,165 ventures register and creating approximately 40,000 jobs. Meanwhile, MLUPY has facilitated ₹46+ crore in subsidised loans for MSMEs within a single month in 2023 alone, showcasing the growing real-world impact of Rajasthan Government Loan Schemes across both early-stage and expansion-stage businesses.

Rajasthan has built one of India’s most founder-friendly ecosystems. Through a series of Rajasthan Government Loan Schemes, grants, and sector-specific incentives, the state offers serious capital support for startups and MSMEs. Whether you're a bootstrapped founder or a manufacturing-scale MSME, this 2025 guide helps you navigate key Rajasthan Government Scheme benefits, from loans to grants to interest subvention and how StartupFlora helps you access them, step-by-step.

Why Rajasthan Government Loan Schemes Matter

Over the past few years, Rajasthan has gone beyond policy talk it has created real pipelines of funding in Rajasthan. From soft loans and interest subvention to grants and guarantee cover, Rajasthan Government Loan Schemes now cater to early-stage startups, capex-heavy MSMEs, youth entrepreneurs, and more.

If you're looking to fund your next move idea, pilot, expansion, or infra buildout Rajasthan Government Scheme support could lower your debt cost by up to 9%, offer ₹25–60 lakh in grant money, and even remove collateral barriers.

Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

A flagship Rajasthan Government Scheme, MLUPY offers:

• Loans up to ₹10 crore
• 5–8% interest subsidy for 5 years
• Collateral-free up to ₹10 lakh

In FY2023 alone, over ₹46 crore worth of subsidised loans were disbursed to 230+ MSMEs.

Apply via your bank/NBFC with MLUPY tagging. District Industries Centre (DIC) facilitates the process.

📌 Best for: Manufacturing or services MSMEs scaling capacity.

iStart Rajasthan & Startup Policy, 2022

This is Rajasthan’s startup growth engine. The iStart program, under the Rajasthan Government Scheme umbrella, offers grants not just loans for registered startups.

Available Government Grants for Rajsthan Startups & MSMEs:

• Sustenance Grant (monthly)
• Viability Grant of ₹10–60 lakh
• Marketing Grant up to ₹10 lakh
• Seed Grant up to ₹25 lakh for prototypes

6,165+ startups have registered, with ₹40.95 crore in grants disbursed. Over 800 have been funded.

SSO ID → iStart Registration → Upload pitch, financials, and business plan.

📌 Best for: Startups in seed/idea stage needing working capital and market access.

RIPS 2022 & 2024: Investment-Grade Rajasthan Government Scheme

The Rajasthan Investment Promotion Scheme (RIPS) adds firepower to your capital journey.

Loan-related features:

• 5% interest subsidy for manufacturing
• 7% interest subvention for logistics/cold-chain infra (subject to ceiling)
• Asset and infrastructure support

It’s stackable with MLUPY and MSME policy benefits.

👉 Incentive applications managed on state portals using SSO login.

📌 Best for: MSMEs with land or equipment investment.

Rajasthan MSME Policy 2024

Aligned with central schemes like CGTMSE, this Rajasthan Government Loan Scheme offers:

• Guarantee fee reimbursement for collateral-free loans
• Stacked interest subsidies via RIPS
• Simplified timelines and state-wide coverage

Apply after getting Udyam registration → route loan via any bank/NBFC → claim benefits via the MSME portal.

Best for: Units seeking risk-free term loans.

RFC Loans: Government-backed Project Finance

The Rajasthan Financial Corporation (RFC) provides direct long-term project loans to MSMEs under state policies.

Features:

• Lower interest rates for manufacturing/service sectors
• Online loan processing
• Quick turnaround for term loans

📌 Best for: Mid-size projects needing plant/machinery funding.

NEW scheme in Rajasthan: Vishwakarma Yuva Udyami Protsahan Yojana (2025)

The newest Rajasthan Government Scheme, launched in August 2025, focuses on youth and women-led businesses.

Key Features:

• Loans up to ₹2 crore
• 8% interest subvention
• Extra 1% for SC/ST/women/rural/weaver segments
• Margin money support: 25% up to ₹5 lakh

Perfect for high-capex, rural-focused businesses or artisan-to-enterprise journeys.

Apply via: State portal (launching soon); keep DPR, Udyam, and KYC ready.

Here's Difference in Government Loans vs Grants

Applying for Rajasthan Government Loan Schemes

Register on Udyam

Create SSO ID
Pick your stack:

• Grants? → iStart
• Loans? → Bank/RFC + MLUPY/RIPS/MSME Policy

Prepare Docs:

• DPR
• Financial model (3-statement)
• Pitch deck (for iStart)
• KYC, IT returns, GST, bank statements

How StartupFlora Guide You Access These Schemes

StartupFlora is your trusted guide for Rajasthan Government Loan Schemes. We simplify every step:

What we do:

• Match you with the right scheme mix (MLUPY, iStart, RIPS, etc.)
• Build bank-grade DPRs & financial models
• Handle SSO, iStart, RIICO & RFC workflows
• Navigate lenders + CGTMSE to remove collateral burden
• Ensure post-sanction reimbursements are claimed and tracked

Need help figuring out your route?
We’ll deliver a funding guidance + doc checklist in 48 hours.

Funding Story – MIV Apna OPD

Overview of the Company:
MIV Apna OPD is a Rajasthan-based healthcare startup dedicated to providing affordable and accessible medical consultations. The platform bridges patients with verified doctors through both online and offline OPD (Outpatient Department) services, focusing on improving healthcare access in semi-urban and rural regions of Rajasthan.

Funding and Guidance by StartupFlora:
With expert guidance from StartupFlora, MIV Apna OPD successfully secured a ₹5 lakh government grant under the Startup India Seed Fund Scheme (SISFS). StartupFlora supported the startup at every stage — from project report preparation to application and documentation. This grant helped MIV Apna OPD enhance its digital platform, expand OPD centers, and improve healthcare reach across multiple districts in Rajasthan.

FAQs

Q1. Are iStart grants different from loans?
Yes—iStart offers non-repayable grants. You can combine them with a loan under MLUPY or RIPS to stack both capital types.

Q2. What’s the lowest interest rate I can get under Rajasthan Government Loan Schemes?
With subvention from MLUPY (up to 8%) + RIPS (5–7%), your effective rate can fall to as low as 3–4%.

Q3. Is the Vishwakarma Yuva Scheme active now?
Yes—approved in August 2025, it offers up to ₹2 crore loan + 8% subsidy + ₹5 lakh in margin money support.