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CM Yuva Udyami Yojana, officially the Mukhyamantri Yuva Udyami Vikas Abhiyan or CM YUVA, is a state programme in Uttar Pradesh under which a resident between 21 and 40 years old can borrow from a bank, capped at 5 lakh rupees, for a small business of their own, interest free and without collateral, plus a margin money subsidy of 10 percent of the project cost. The minimum education is Class 8 pass.
The Directorate of Industries and Enterprise Promotion of Uttar Pradesh handles it under the state MSME department. Applications are made online on the UP MSME portal, and the loan itself comes from a bank after the district office forwards the file. Here is who qualifies, the papers, the steps and what to expect from the bank.
At a glance
Run by
MSME and Export Promotion Department, Uttar Pradesh, through the Directorate of IndustriesLoan
Up to 5 lakh rupees, interest free, no collateralSubsidy
10 percent margin money subsidy on project costAge
21 to 40 yearsEducation
At least Class 8 pass; training or diploma preferredApply at
Helpline
155343, toll free, Monday to Saturday, 10 am to 6 pm
What the cm yuva udyami yojana gives
- Loan: a ceiling of 5 lakh rupees, meant for a new micro enterprise in manufacturing, services or trade.
- Interest: the state pays the interest, so the borrower repays only the principal, as long as instalments are paid on time.
- No collateral: the borrower does not have to pledge land, a house or gold.
- Margin money subsidy: 10 percent of the project cost.
- Support: guidance on preparing a project report and running the unit.
The loan is meant to start a new unit, not to repay old debts or buy personal goods. The bank checks that the money is used as the project report says.
Who can apply
The applicant must be a resident of Uttar Pradesh aged between 21 and 40. The minimum qualification is Class 8 pass; candidates with a certified training, diploma or degree from a recognised institution are also eligible. Youth trained under state programmes such as One District One Product, or the state's artisan training scheme for traditional trades, get special preference.
Priority goes to youth without work, women, SC, ST and OBC applicants, minorities and applicants with a disability. A person already taking a loan subsidy under another central or state scheme cannot apply.
Documents for the UP MSME portal
- Aadhaar card, used for registration and identity.
- Proof of age, such as the Class 10 certificate or birth certificate.
- Class 8 or higher mark sheet, and any training, diploma or degree certificate.
- Project report for the business, with costs and expected income.
- Caste certificate, if applying under a priority category.
- Passbook page with the IFSC, plus one photo.
- Quotations for machines or equipment, where the bank asks for them.
The portal lists identity proof, age proof, training certificate and project report as the core papers. Keep scanned copies ready before you start.
Mukhyamantri yuva udyami yojana online apply
- Open the UP MSME portal at msme.up.gov.in.
- Register with Aadhaar and mobile number if you are new, then log in.
- Choose the CM YUVA scheme from the list.
- Fill personal, education and business details, and choose the bank and branch.
- Upload documents and the project report, then submit.
- The District Industries and Enterprise Promotion Centre checks the application and forwards it to the bank.
- The bank appraises the project and sanctions the loan. Track progress by logging in on the portal.
A simple worked example
A 26 year old with a diploma plans a small tailoring and embroidery unit costing 4 lakh rupees. Under the scheme, the bank may lend up to the project cost within the 5 lakh limit, and the state's 10 percent margin money subsidy, 40,000 rupees here, reduces what the borrower has to repay. If every instalment is paid on time, no interest is charged to the borrower.
The bank's appraisal decides the final loan amount, the repayment period and the instalment size. Ask the branch to explain these in writing before you sign.
Before you sign: practical points
- Late instalments can cost the interest free benefit for that period. Set aside the instalment each month.
- Keep bills for everything bought with the loan. The bank and the district office may inspect the unit.
- Registering the unit on the Udyam portal is usually needed and is free.
- No agent can guarantee sanction. Anyone demanding a payment to push your file should be reported on 155343.
Whether a loan is right for you depends on your business plan and how steady your income will be. Discuss the plan with the district industries centre or the bank before committing.
Frequently asked questions
What is the cm yuva udyami yojana up 5 lakh loan?
It is bank finance, with 5 lakh rupees as the upper limit, for a new micro enterprise in Uttar Pradesh, interest free and without collateral, with a 10 percent margin money subsidy.
Who is eligible for mukhyamantri yuva udyami yojana, also written mukhya mantri yuva udyami yojana?
UP residents aged 21 to 40 who have passed at least Class 8 and are not using another loan subsidy scheme.
How do I do the cm yuva udyami yojana up online registration?
Register on msme.up.gov.in with Aadhaar and mobile, select CM YUVA, fill the form, upload documents and submit.
Is the yuva udyami yojana loan really interest free?
Yes. The state bears the interest, provided you repay instalments on time.
Do I need a guarantor or collateral?
The scheme says no collateral is needed. The bank may still ask for other papers as part of its appraisal.
What is the cm yuva scheme helpline?
Call 155343. It is toll free and answers on working days except Sunday, during office hours as shown on the portal.
Official sources
- UP MSME 1 Connect: CM YUVA schememsme1connect.up.gov.in
- UP MSME portalmsme.up.gov.in
Rules, amounts and portals can change. Check the official source before you apply or deposit.