New Loan Scheme: The Government is encouraging the state’s youth not only to seek employment but also to pursue self-employment. With this in mind, the Yogi Adityanath government has launched the Chief Minister Youth Entrepreneurship Scheme. The objective of this scheme is to empower young people by providing them with financial assistance to start their own small businesses, enabling them to become self-reliant and provide employment to others.
What is the Chief Minister Youth Entrepreneurship Scheme?
Under the Chief Minister Youth Entrepreneurship Scheme, eligible young people are given a loan of up to Rs. 5 lakh. No interest is charged on this loan. Most importantly, no guarantee or security deposit is required for this scheme. This provides an opportunity for economically weaker sections of society to start their own businesses.
Who can apply?
Applicants for the Chief Minister Youth Entrepreneurship Scheme must be between 21 and 40 years of age. The minimum educational qualification is an 8th-grade pass. Applicants must also possess a skill training certificate from a recognized institution or a degree in a relevant field. It is also a condition that the applicant should not be receiving benefits from any other government scheme that provides capital or interest subsidies, except for the PM SVANidhi scheme.
How to apply?
The application process for this scheme is entirely online. Interested youth can register on the official MSME website, msme.up.gov.in. After the application is submitted, the District Industries Promotion and Entrepreneurship Development Center verifies the documents. Upon fulfilling the eligibility criteria, the application is forwarded to the concerned bank. After reviewing the proposal, the bank approves the loan, and the funds are then disbursed.
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Benefits of Margin Money and Subsidy
In this scheme, the beneficiary’s contribution is determined according to their category. It is 15 percent for the general category, 12.5 percent for the OBC category, and 10 percent for the SC, ST, and differently-abled categories. The government provides a 10% margin on the project cost. If the beneficiary successfully runs their business for two years, this margin money is converted into a subsidy and does not need to be repaid.
Why is this scheme special for young people?
This scheme is considered very special for young people because it provides loans without interest and without collateral. This relieves new entrepreneurs of the financial challenges they face in the initial stages and allows them to focus entirely on their business. This scheme is a major step towards creating a new generation of self-reliant youth in Uttar Pradesh.