The Uttar Pradesh government has launched a flag‑ ship entrepreneurship programme — Mukhyamantri yuva Udyami Vikas Abhiyan (CM‑YUVA) — aimed at empowering youth by offering interest‑free and collateral‑free loans to start or grow their own ventures. This scheme is part of the state’s larger effort to boost self‑employment, reduce unemployment and encourage entrepreneurship in both urban and rural areas.
What Is the UP MYUVA Scheme?
The MYUVA (Mukhyamantri yuva Udyami Vikas Abhiyan) is an initiative by the government of Uttar Pradesh through the MSME (Micro, Small & Medium Enterprises) Department to provide financial support to young aspiring entrepreneurs. Under the scheme:
- Youth can get interest‑free loans up to ₹5 lakh in the first phase.
- On successful repayment, they become eligible for additional support up to ₹10 lakh in the second phase, often with partial interest subsidy.
The loan support is 0 % interest, and in many cases collateral‑free, making it easier for youths to access funds without financial burden.
Key Features of the MYUVA Scheme
🔹 Interest‑Free and Collateral‑Free Loans
Under the first phase, beneficiaries are given up to ₹5 lakh loan at 0 % interest and without collateral. This removes financial barriers for youth wanting to set up small enterprises.
🔹 Up to ₹10 Lakh Support
After successful repayment of the first loan phase, entrepreneurs can access additional funds up to a total project size of ₹10 lakh. In this second phase, the government often provides an interest subsidy (e.g., 50 %), making the effective cost of borrowing lower.
🔹 Graduated Support Structure
The scheme is phased:
- Phase 1: Up to ₹5 lakh interest‑free loan.
- Phase 2: After good repayment history, access up to ₹10 lakh with interest subsidies and support fees covered by the government.
🔹 Support for Skill Development
Eligibility often includes having undergone government‑recognized training such as ODOP, Vishwakarma Shram Samman, or other skill certifications — boosting both employability and entrepreneurial skill sets.
Who Can Apply? Eligibility Criteria
To be eligible for support under the MYUVA scheme, applicants typically must:
✔ Be a permanent resident of Uttar Pradesh.
✔ Be within the eligible age group (usually 21–40 years).
✔ Have at least minimum education (often 8th pass or above), though relaxed criteria are sometimes offered.
✔ Have training or certification in relevant trade or business skills if required under the scheme.
These criteria ensure that youth not only receive financial support but also have the skills and readiness to run a business.
What Can the Loan Be Used For?
The MYUVA loan can be used to start or expand micro enterprises, including:
- Small manufacturing units,
- Service enterprises (shops, salons, logistics services),
- Trade and commerce ventures,
- Agriculture‑linked business activities.
The aim is to support real business projects that create jobs and generate revenue, rather than just providing cash.
Loan Repayment and Moratorium
- The moratorium period (time before repayments start) is typically around 6 months, giving new entrepreneurs time to set up operations.
- Repayment schedules usually extend over 3–4 years, with manageable instalments tied to business cash flows.
Such a flexible repayment structure helps ease pressure on new businesses in their critical startup phase.
How to Apply
Prepare Required Documents: Identity proof (Aadhaar), residence proof, bank details, project plan, and educational/skill certificates.
Submit Application: Through the state’s MSME or CM‑YUVA portal or at designated district Industries Centres.
Loan Processing: Banks and nodal agencies evaluate the business plan and applicant’s eligibility before sanctioning the loan.
Eligibility and documentation may vary slightly by district or bank — always check the official MYUVA/MSME UP portal for current details.
Why This Scheme Matters
The UP MYUVA Scheme helps youth overcome the biggest hurdle in entrepreneurship — access to affordable capital. With zero interest costs and no collateral, even individuals from modest backgrounds can start businesses and contribute to job creation and economic growth.
The scheme has already seen hundreds of thousands of applications and has led to many loans being sanctioned and businesses launched across the state.
Conclusion: Dream Big, Start Small
If you’re a young resident of Uttar Pradesh with a business idea but lack funding, the MYUVA Scheme 2026 could be your opportunity. With interest‑free funding, phase‑wise support up to ₹10 lakh, and flexible repayment terms, the government’s push for youth entrepreneurship aims to turn dream ventures into sustainable businesses.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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