The Chief Minister’s Youth Entrepreneur Development Campaign is set to get a major upgrade, making it easier for young people to start their own business.
The Yogi government has proposed new changes that could allow even 18-year-olds to apply for bigger, interest-free loans.
A budget of ₹1,000 crore has already been allocated for this scheme, showing the government’s strong focus on promoting youth entrepreneurship.
Bigger Loans and Lower Age Limit
Right now, the scheme offers loans of up to ₹5 lakh for people aged 21 to 40. But under the new proposal, the minimum age could be reduced to 18 years, while the maximum age will stay the same.
The biggest highlight is the increase in loan amount. The limit may be doubled from ₹5 lakh to ₹10 lakh in the first phase. In the second phase, eligible entrepreneurs could get up to ₹15 lakh, compared to the current ₹7.5 lakh.
This move aims to give young business aspirants more financial support right from the start.
Who Can Apply?
To apply for this scheme, a few basic conditions need to be met:
Age: 18 to 40 years (proposed)
Education: At least 8th pass
Residence: Must be a permanent resident of Uttar Pradesh
Special preference will be given to those who have completed 12th (Intermediate) or received training under schemes like Vishwakarma Shramik Samman Yojana and One District One Product.
Subsidy and Financial Benefits
Applicants also need to contribute a small part of the project cost as margin money. The government supports this by offering a subsidy of up to 10% (maximum ₹50,000).
Margin money requirements differ by category:
- General: 15%
- OBC: 12.5%
- SC/ST/Divyang: 10%
This makes the scheme more accessible, especially for economically weaker sections.
How the Two-Phase Loan System Works
The scheme is designed in two stages to support long-term growth:
First Phase:
You can get a loan of up to ₹5 lakh. There is a 6-month moratorium period, after which repayment starts and continues for 4 years.
Second Phase:
Once the first loan is successfully repaid, you become eligible for a bigger loan of up to ₹15 lakh, along with a 50% interest subsidy.
This structure encourages responsible borrowing and helps businesses grow step by step.
Documents You’ll Need
To apply, keep these documents ready:
Aadhaar Card
PAN Card
Residence Certificate
Bank Passbook
Educational Certificate
Project Report
How to Apply
Applying for the scheme is simple and fully online:
Visit the official portal: https://msme.cmyuva.org.in/home
Enter your mobile number
Fill in your full name
Provide your age, gender, and city
Select your business sector and industry
Submit the form
Strong Response from Youth
The scheme has already seen impressive participation. In the 2025–26 financial year, over 3.8 lakh young people applied, and more than 1.38 lakh received loans.
As a result, over 10,000 new ventures have been launched, showing the growing interest among youth to become self-employed.
With these new proposed changes, the scheme could open even more doors for aspiring entrepreneurs across Uttar Pradesh.
