Small Business Loan: If you plan to start your own business or venture but lack sufficient capital, this news could be significant for you. Typically, getting a bank loan without collateral (guarantee) is difficult; however, a solution is now available. The state government has launched the ‘Mukhyamantri Yuva Udyami Vikas Abhiyan’ scheme to foster self-reliance and self-employment among the youth. Under this scheme, young people receive interest-free, collateral-free loans to start new businesses in the manufacturing or service sectors.

Know the benefits of the government scheme

If you are starting a business for the first time, the scheme covers project costs of up to ₹5 lakh, with a 100% government subsidy. This means you do not have to pay a single rupee in interest. While banks often require property or a guarantor for loans, the CM Yuva scheme covers the entire loan under a credit guarantee fund; therefore, you don’t need to pledge any assets as collateral.

If you repay the initial loan of up to ₹5 lakh on time, you become eligible for a loan of up to ₹10 lakh in the second phase of the scheme. This phase also includes a 50% subsidy. Additionally, the government provides a special subsidy on ‘margin money’ for the project cost. Entrepreneurs who adopt digital transactions are also offered separate incentives.

Who is eligible for the loan?

To avail the benefits of this scheme, the primary requirement is that you must be a resident of Uttar Pradesh. Applicants must be between 18 and 40 years of age and have passed at least the 8th standard. Priority is given to applicants who have undergone training under the ‘Vishwakarma Shram Samman Yojana,’ ‘One District One Product’ (ODOP), or any government skill development scheme. This benefit is available only for establishing new industrial or service-based ventures.

How to apply online?

First, visit the official portal of the Directorate of Industries and Enterprise Promotion (UP MSME).

On the home page, click on the ‘CM Yuva Udyami Vikas Abhiyan’ scheme.

Enter your mobile number and complete the online registration.

Fill in all the information requested in the application form.

Upload all the required documents and click the submit button.

The District Industries Centre (DIC) and the concerned bank will then verify the form, after which they will transfer the loan amount to your account.