If you’re a resident of Uttar Pradesh and dream of starting your own business, Chief Minister Yogi Adityanath’s MYUVA scheme (Mukhyamantri Yuva Udyami Vikas Abhiyan) is a revolutionary opportunity for you. Under this scheme, educated and skilled youth of the state are being offered interest-free loans of up to ₹5 lakh, without the need for any collateral. The Uttar Pradesh government aims to create 1 million new entrepreneurs over the next 10 years.
What is the Mukhyamantri Yuva Udyami Vikas Abhiyan?
The Yogi Adityanath government of Uttar Pradesh launched this ambitious scheme on March 3, 2024. The primary objective of this scheme is to connect energetic youth aged 21 to 40 in the state with self-employment and empower them financially so that they become job creators, not job seekers.
The government wants the youth of Uttar Pradesh to utilize their talents to establish local industries, thereby strengthening the state’s economy. A strong goal has been set to connect millions of youth with this initiative over the next decade.
Who can benefit
The government has set strict eligibility criteria for obtaining a loan under this scheme. Applicants must be between 21 and 40 years of age. Educational qualifications require a minimum of 8th grade. Applicants must also possess a skill training certificate or a professional degree from a recognized institution. It should be noted that being a permanent resident of Uttar Pradesh is a prerequisite. Furthermore, applicants must not be availing of any other government interest subsidy scheme except PM SVANidhi.
Scheme Features and Margin Money
This scheme is completely different and robust from typical loan schemes because it carries no interest burden, and no land or jewelry collateral is required. The total loan term is set at 4 years. However, beneficiaries must bear a portion of the project cost based on their category. Youth in the general category must contribute 15%, while those in the Other Backward Classes (OBCs) are required to contribute 12.5%. For Scheduled Castes, Scheduled Tribes, and Persons with Disabilities, this limit is set at only 10%.
Most importantly, the government also provides a 10% margin on the project cost. If the entrepreneur successfully operates their business for two years, this margin money is fully subsidized, meaning they will not have to repay it. This is a significant incentive provided by the government to new businesses.
Application Process
The entire process for applying for the MYUVA scheme is digital and transparent.
First, you must visit the Uttar Pradesh MSME portal, msme.up.gov.in, and complete your registration by clicking on the “Chief Minister’s Youth Entrepreneur Development Campaign” link.
Then, upload the required documents, such as your marksheets, training certificates, Aadhaar card, and residence certificate.
Your application will be reviewed by the District Industries Promotion and Entrepreneurship Development Center and, after verification, will be forwarded to the relevant bank.
The bank will thoroughly review your business proposal and, upon satisfaction, will release the loan amount to your account.