Big news for state youths. To support the youth in Uttar Pradesh, the Chief Minister Yuva Udyami Vikas Abhiyan, also known as the CM Yuva Yojana, has been launched. This initiative aims to provide eligible young individuals in the state with interest-free loans of up to 5 lakhs, without the need for any guarantees, to help them start their own businesses. The state government will offer this financial aid for a duration of four years, encouraging the youth to become job creators.

In a recent post on X, the UP government announced the commencement of the Chief Minister Yuva Udyam Vikas Abhiyan. This initiative is designed to harness the vast potential of the state’s youth. Under this scheme, beneficiaries from the general category will need to contribute 15% of the project cost, while OBC beneficiaries will contribute 12.5%. SC-ST and Divyang individuals will have a contribution requirement of 10%, and those from aspiring districts such as Chitrakoot, Chandauli, Fatehpur, Balrampur, Siddharthnagar, Shravasti, and Bahraich will also contribute 10%. More information about the CM Yuva Yojana can be found on the official website msme.up.gov.in.

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The main goal of this initiative is to help young people get the financial support they need to launch their own businesses. The aim is to establish 100,000 new small enterprises each year and create 1 million self-employment opportunities over the next decade. This program will offer financial aid, skill training, and business guidance to the youth.

What is CM Yuva Yojana?

The Mukhyamantri Yuva Udyami Vikas Abhiyan, or CM Yuva, is a key program from the Uttar Pradesh government designed to generate 1 million self-employment opportunities in the next ten years. The focus is on empowering young people to become self-sufficient by starting micro and small businesses. This scheme provides financial support, skill development, and business assistance to help them succeed.

Who can benefit from this program?

Applicants must be residents of Uttar Pradesh.
Age requirement: 21 to 40 years.
Minimum education: Must have completed at least the 8th grade (preferably have completed Intermediate or equivalent).
Applicants should have finished training through a government-sponsored skill development program, such as Vishwakarma Shram Samman Yojana, One District One Product (ODOP) Training and Toolkit Scheme, Scheduled Castes/Scheduled Tribes/OBC Training Scheme, or Uttar Pradesh Skill Development Mission.
Alternatively, they should hold a certificate, diploma, or degree in a relevant skill from a recognized institution.
Applicants should not have received interest or capital subsidies from any other government scheme, except for the Pradhan Mantri Swanidhi Yojana.

What kind of financial assistance is available through the CM Yuva Yojana?

First Phase (Phase 1)

For projects costing up to Rs 5 lakh: Beneficiaries receive a 100% interest subsidy along with a loan that requires no collateral for the project cost, available for a duration of 4 years.
For projects between Rs 5 to 10 lakh: The additional funding must be provided by the beneficiary.
Moratorium period: There is no repayment obligation for the first 6 months.
CGTMSE coverage: This is provided by the state government for a period of 4 years.
Margin money subsidy: A subsidy of 10% of the project cost (up to a maximum of Rs 50,000) will be granted once the unit is operational.

Second Phase (Phase 2)

Once the loan from the first phase is repaid, beneficiaries can apply for financial support in the second phase.

The maximum project cost in this phase is Rs 10 lakh; for projects ranging from Rs 10 to Rs 20 lakh, beneficiaries will need to secure additional funding themselves.
Interest subsidy: A 50% interest subsidy is available for amounts up to Rs 7.5 lakh or double the amount of the first phase loan, whichever is lower, for a duration of 3 years.
CGTMSE Coverage: The state government will continue to cover this for 3 years in the second phase as well.
Margin Money Subsidy: This subsidy is not available in Phase 2.

What is the margin money requirement for the CM Yuva Yojana?

For the General Category: 15% of the total project cost.

For OBC: 12.5% of the total project cost.

For SC/ST, Divyang, and beneficiaries from backward areas: 10% of the total project cost.

How to apply:

Online Application: You can submit your application through msme.up.gov.in.

Document Upload: Make sure to upload your Age Proof, Educational Qualification, Skill Certificate (if applicable), Business Plan, and Address Proof.

Loan Processing: The bank will assess your project and make a decision regarding loan approval or rejection.

Subsidy Disbursement: After the loan is approved, the subsidy and assistance will be transferred directly to your bank account.