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Government introduces Interest-Free Loan Scheme up to ₹5 Lakh

Takendra Verma
Last updated: 27/12/2025 12:56 PM
Takendra Verma
Published: 27/12/2025
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To promote self-employment among young people, the Uttar Pradesh government has launched the Mukhyamantri Yuva Udyami Yojana (MYUVA Scheme).

Contents
Who Can Apply for the MYUVA Scheme?How to Apply: Simple Online ProcessContribution Rules and Extra Benefits

Under this scheme, eligible youth can get financial support of up to ₹5 lakh to start a small business.

The biggest relief is that the loan comes with zero interest.

There is also no requirement for any guarantee or security deposit, making it easier for youths from financially weaker backgrounds to apply.

Who Can Apply for the MYUVA Scheme?

The scheme was launched on March 3, 2024, with the goal of creating new entrepreneurs across the state.

Applicants must be between 21 and 40 years of age.

A minimum education qualification of Class 8 is required.

Along with this, the applicant must have either a skill training certificate or a relevant degree from a recognized institution.

Those already receiving benefits from other government schemes that provide capital or interest support are not eligible.

However, beneficiaries of PM SVANidhi can still apply.

How to Apply: Simple Online Process

The entire application process is fully digital.

Interested candidates must apply through the official MSME website at msme.up.gov.in.

After submission, the District Industries Promotion and Entrepreneurship Development Center (DIC) checks the documents.

Once eligibility is confirmed, the application is forwarded to the linked bank.

The bank then reviews the business proposal, approves the loan, and releases the funds directly to the beneficiary.

Contribution Rules and Extra Benefits

Applicants are required to contribute a small portion of the project cost.

The contribution is 15% for General category, 12.5% for OBC, and 10% for SC, ST, and differently-abled applicants.

The government also provides 10% margin money on the total project cost.

If the business runs successfully for two years, this margin money is converted into a non-refundable subsidy.

With interest-free funding, no guarantee requirements, and added subsidies, the MYUVA Scheme offers a strong opportunity for youth in Uttar Pradesh to become self-reliant and start their own businesses.

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