Back to Schemes
Business & Entrepreneurship

Motivation Of Unemployed Persons To Start Self-Employed Enterprises Scheme

The scheme “Motivation of Unemployed Persons To Start Self-Employed Enterprises Scheme (MUPSES)” was launched by the Union Territory of Puducherry in the year 2006 with a view to encouraging self-employment among the youth in manufacturing and service activities.

Authority

State

Region

Puducherry

Status

Verified 2026

Updated

March 2026

What you get

- Under the scheme, the applicant may get a loan from ₹10,000/- to ₹2,00,000/- to set up a startup in the manufacturing and/or service sectors. | - 50% of the project cost excluding pre-operative and preliminary expenses will be granted as a subsidy for the projects not exceeding ₹50,000/- | - 35% of the project cost excluding pre-operative and preliminary expenses to a maximum of ₹35,000 will be granted as a subsidy for project costs exceeding ₹50,000 but less than ₹2.00 lakhs. | Note: The amount of the Loan will be disbursed as soon as the beneficiary completes the formalities required by the Banks.

Who can apply

Unemployed Men and Women of the Union Territory of Puducherry are eligible to apply under the scheme.; The age of the applicant should be as per the existing norms of banks.; No formal education is required. However, the applicant should know to read and write fluently.; No limit on family income.; The applicant should be a permanent resident of the Union Territory of Puducherry for at least 3 years.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Who is eligible to get the benefits of the scheme?

Unemployed Men and Women of the Union Territory of Puducherry are eligible to apply under the scheme.

What is the objective of the scheme?

To encourage unemployed persons in the U.T. of Puducherry to start self-employment in manufacturing or service sector enterprises.

Which is the implementing department of the scheme?

District Industries Centre, Union Territory of Puducherry

When was this scheme started?

This scheme was launched in the year 2006.

What is the benefit of the scheme?

Under the scheme, the applicant may get a loan from [?]10,000/- to [?]2,00,000/- to set up a start-up in the manufacturing and/or service sectors.

What are the activities covered under the scheme?

All economically viable service and industrial activities are covered under the scheme such as Mechanized laundry, Beauty Parlour (Saloon), Tailoring units, and Setting up of Hygienic Tea / Coffee Stalls are presently encouraged under the scheme.

What is the age criterion under the scheme?

The age of the applicant should be as per the existing norms of banks.

What is the income criterion under the scheme?

There is no family income limit.

Is this scheme only for a permanent resident of the Union Territory of Puducherry?

Yes, the applicant should be a permanent resident of the Union Territory of Puducherry for at least 3 years.

What is the educational qualification required to avail of the benefits of the scheme?

No formal education is required, the applicant should know to read and write fluently.

What is the rate of interest on loan amount?

Normal bank rate of interest on the date shall be charged.

What should be the project cost under the scheme?

The project cost should be up to [?]2, 00,000/-.

Where can an applicant get the application form?

The applicant may download the application form from the official website. https://dic.py.gov.in/mupses-application-form