MYSY Subsidy 2026: How Much Financial Assistance Can You Get?

What the MYSY Subsidy Actually Is

MYSY's financial assistance comes as a margin money subsidy — a one-time state government contribution credited against your bank loan, not a recurring payment. It is not a grant handed directly to you; it reduces what you owe the bank.

Subsidy Rate

• General category: 25% of the loan amount, capped at ₹6.25 lakh (industry) or ₹2.50 lakh (service).
• SC/ST applicants: 30% of the loan amount, subject to the same category caps.

The subsidy is released to the bank alongside loan disbursement — it isn't something you receive as cash in hand separately from the loan process.

What It Doesn't Cover

MYSY's subsidy is specifically margin money against the bank loan — it's separate from interest subsidy schemes, and separate from capital subsidy under industrial policies. If your project also qualifies for other UP incentives (like interest subsidy on the loan), those are typically claimed through separate application routes, not automatically bundled with MYSY.

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