MYSY Margin Money: Calculation & Rules Explained
How Margin Money Is Calculated
Margin money under MYSY is calculated as a percentage of your sanctioned bank loan, subject to a sector-wise cap:
| Category | Rate | Cap — Industry | Cap — Service |
|---|---|---|---|
| General | 25% | ₹6.25 lakh | ₹2.50 lakh |
| SC/ST | 30% | ₹6.25 lakh | ₹2.50 lakh |
Example: A general-category applicant sanctioned a ₹20 lakh industrial loan would be eligible for 25% margin money — ₹5 lakh — since that's below the ₹6.25 lakh cap. If the loan were ₹25 lakh, 25% would be ₹6.25 lakh, exactly at the cap.
When It's Released
Margin money is released to the bank alongside loan disbursement — it isn't paid to you directly, and isn't released before the bank itself disburses funds.
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Official portal: diupmsme.upsdc.gov.in Last reviewed: Aug 2026
This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.