The Chief Minister’s Youth Entrepreneur Development Campaign is set to become more attractive for young people looking to start their own business.
The Yogi government has proposed major changes that could make it easier for even younger applicants to access bigger, interest-free loans.
The scheme has also received a strong push in the budget, with ₹1,000 crore allocated for the upcoming financial year.
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 proposed changes, the minimum age could be reduced to 18 years, opening the door for younger entrepreneurs.
At the same time, the loan amount may be increased significantly. The limit could go up from ₹5 lakh to ₹10 lakh in the first phase. In the second phase, eligible applicants may get up to ₹15 lakh, compared to the earlier ₹7.5 lakh.
Who Can Apply?
The eligibility criteria are fairly simple, making this scheme accessible to many:
Age: 18 to 40 years (proposed)
Education: At least 8th pass
Residency: 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 Support Details
Applicants need to invest a small portion of the project cost as margin money. The government supports this by offering a subsidy of up to 10%, capped at ₹50,000.
Margin money requirements vary by category:
General: 15%
OBC: 12.5%
SC/ST/Divyang: 10%
This helps reduce the financial burden on applicants.
How the Scheme Works in Two Phases
The scheme is designed to support businesses step by step:
Phase 1:
You can get a loan of up to ₹5 lakh. There is a 6-month moratorium period, after which the loan must be repaid within 4 years.
Phase 2:
Once you successfully repay the first loan, you become eligible for a bigger loan of up to ₹15 lakh. In this stage, you also get a 50% interest subsidy.
Documents You’ll Need
To apply, keep these documents ready:
- Aadhaar Card
- PAN Card
- Residence Certificate
- Bank Passbook
- Educational Certificates
- Project Report
How to Apply
Applying for the scheme is simple and can be done online through the official portal. You just need to:
Enter your mobile number and basic details
Fill in your name, age, gender, and city
Choose your business sector and industry
Submit the form
Strong Response from Youth
The scheme has already seen a huge response. In the 2025–26 financial year, over 3.86 lakh youth applied, and more than 1.38 lakh received loans.
As a result, over 10,000 new ventures have been launched, showing that the scheme is helping turn business ideas into reality.
