Mukhya Mantri Yuva Udyami Vikas Abhiyan 2026: Interest-Free Loans up to ₹5 Lakh & Application Guide

At a glance

About the scheme

Launched by the MSME and Export Promotion Department of Uttar Pradesh, the Mukhya Mantri Yuva Udyami Vikas Abhiyan (CM-YUVA) seeks to generate self-employment for skilled youth by supporting the launch of micro and small enterprises. The scheme provides financial assistance in two phases: Phase 1 offers complete interest-free and guarantee-free term and working capital loans up to ₹5,00,000 along with margin money assistance, while Phase 2 provides loans up to ₹10,00,000 with a 50% interest subsidy on loans up to ₹7,50,000 for entrepreneurs who successfully repay their Phase 1 loan.

Benefits

• Phase 1: 100% interest-free and collateral guarantee-free loans for 4 years on projects up to ₹5,00,000.
• Phase 1: 10% margin money grant on the project cost and CGTMSE fee reimbursement for 4 years.
• Phase 1: Low own contribution requirement (15% for General, 12.5% for OBC, and 10% for SC/ST/Divyang and aspirational district residents).
• Phase 2: Project funding up to ₹10,00,000 with a 50% interest subsidy on loans up to ₹7,50,000 for 3 years upon full repayment of Phase 1 loans.
• Phase 2: CGTMSE loan coverage for 3 years and inclusion of workshop or workshed costs.
• Digital transaction incentive of ₹1 per transaction, up to a maximum of ₹2,00,0 per year.

Who can apply (eligibility)

• Applicant must be between 21 and 40 years of age.
• Must have passed at least Class 8th (Intermediate or equivalent qualification is preferred).
• Must have completed training under Vishwakarma Shram Samman Yojana, ODOP Training Scheme, SC/ST/OBC Training Scheme, or UP Skill Development Mission, or hold a skill certificate/diploma/degree from a recognised educational institution.
• Applicant must set up a new enterprise and obtain funding from a bank located within their own district.

Who cannot apply

• Individuals with pre-existing GST registration or Udyam Aadhaar registration.
• Manufacturing of alcohol, aerated and carbonated drinks, or beverages.
• Production of tobacco products such as gutkha and pan masala.
• Manufacturing of firecrackers.
• Production of plastic carry bags below 40 microns.
• Any other prohibited businesses or products as per government regulations.

Documents required

• PAN card
• Address proof (Electricity bill or Aadhaar)
• Bank passbook (first page)
• Educational qualification certificate
• Age certificate
• Skill certificate, training certificate, ITI certificate, or computer training certificate
• Project report (CA certification not required)
• Vendor quotation for machinery/equipment
• Self-declaration form
• Passport-size photo and signature
• Experience certificate (if any)
• GST registration (optional)

How to apply

1. 1Go to the official portal at https://msme.cmyuva.org.in/home, click on 'Login', select 'Applicant Login', and click 'New User Registration'.
2. 2Select 'Mukhyamantri Yuva Udyami Vikas Abhiyaan' and fill in personal details including name, date of birth, father's name, mobile number, email, district, and captcha to register.
3. 3Log in using your User ID and password on the portal's login page.
4. 4Review the list of required attachments under the 'Important Instructions for Online Beneficiary-Oriented Scheme' link.
5. 5Fill in all details in the online e-form, upload all mandatory documents, and upload a notary-verified affidavit printout if required.
6. 6Print the draft application to review for errors, make any corrections, and finalise your application under the 'Application Copy' section.
7. 7Download and print the finally submitted application form for your records.
8. 8Track your application progress anytime by entering your application number in the 'Application Status' section on the portal.

Frequently asked questions