Rs.5 Lakh Free Loan: Get Free Loan and Start your Business, Apply Online

Starting a business often requires financial support, skill training, and guidance. To help young people in Uttar Pradesh become self-reliant, the state government has launched the CM Yuva Yojana, officially known as Mukhyamantri Yuva Udyami Vikas Abhiyan. This scheme aims to help one lakh small businesses get started every year and create 10 lakh self-employment opportunities over the next 10 years. If you are a young entrepreneur looking for financial assistance to start your business, this scheme could be the right opportunity for you.

The CM Yuva Yojana is a game-changer for young entrepreneurs in Uttar Pradesh. With easy loan access, interest subsidies, and financial support, this scheme aims to empower youth and boost self-employment opportunities in the state. If you are planning to start a small business, this is the perfect opportunity to turn your dream into reality with government support.

What is the Objective of CM Yuva Yojana?

The main goal of this scheme is to provide financial aid, skill development, and business support to young entrepreneurs in the state. It focuses on setting up micro and small businesses and making young individuals self-sufficient by providing easy access to loans with subsidies and interest benefits.

Who Can Apply for CM Yuva Yojana?

The scheme is open to individuals who meet the following criteria:

• The applicant must be a resident of Uttar Pradesh.
• They should be between 21 and 40 years of age.
• Must have passed at least Class 8 (Preference is given to those who have completed Class 12 or equivalent).
• The applicant should have completed training under any government-sponsored skill development program, such as:
  • Vishwakarma Shram Samman Yojana
  • One District One Product (ODOP) Training Scheme
  • Training programs for SC, ST, and OBC candidates
  • Uttar Pradesh Skill Development Mission
  • Or must have a certificate, diploma, or degree in a skill-related field from a recognized institution.
• The applicant should not have received interest or capital subsidies under any other government schemes, except Pradhan Mantri Swanidhi Yojana.

How Much Financial Assistance is Provided?

Phase 1: Initial Funding for Small Businesses

• Loan Amount: Up to ₹5 lakh
• Interest Subsidy: 100% interest subsidy for 4 years
• Loan Type: Collateral-free loan (No need to pledge property)
• Moratorium Period: No repayment required for 6 months
• Credit Guarantee Coverage (CGTMSE): The state government will cover it for 4 years
• Margin Money Subsidy: 10% of the project cost (Maximum ₹50,000), given after the business starts functioning.

For projects costing between ₹5-10 lakh, the applicant must arrange the additional amount themselves.

Phase 2: Additional Financial Support

After repaying the Phase 1 loan, entrepreneurs can apply for Phase 2 financial assistance.

• Loan Amount: Up to ₹10 lakh
• Interest Subsidy: 50% interest subsidy on ₹7.5 lakh or double the first phase loan amount, whichever is lower, for 3 years.
• Credit Guarantee Coverage (CGTMSE): Covered by the state government for 3 years
• Margin Money Subsidy: Not available in Phase 2
• For projects worth ₹10-20 lakh, the beneficiary must arrange additional funds on their own.

How Much Contribution is Required?

The amount applicants need to contribute depends on their category:

• General Category: 15% of the project cost
• OBC Category: 12.5% of the project cost
• SC/ST, Divyang, and Applicants from Backward Areas: 10% of the project cost
  (Backward areas include Bundelkhand, Purvanchal, and aspirational districts like Chitrakoot, Chandauli, Sonbhadra, Fatehpur, Balrampur, Siddharthnagar, Shravasti, and Bahraich.)

Businesses That Are Not Eligible for the Scheme

Certain businesses are not covered under CM Yuva Yojana. These include:

• Alcohol and beverages (including aerated and carbonated drinks)
• Tobacco products (such as gutkha and pan masala)
• Firecrackers
• Plastic bags (less than 40 microns)
• Other products prohibited by the government

Which Banks Are Providing Loans?

The loans under this scheme will be available through:

• Nationalized Banks
• Scheduled Banks
• Regional Rural Banks
• Other financial institutions approved by the RBI

The state government will provide subsidies and financial support through these banks and financial institutions.

How to Apply for CM Yuva Yojana?

If you are interested in applying for this scheme, follow these steps:

1. Visit the official website: msme.up.gov.in
2. Fill out the online application form.
3. Upload the necessary documents, including:
   • Age proof
   • Educational qualification certificate
   • Skill training certificate (if applicable)
   • Business plan
   • Address proof
4. Loan processing: The bank will evaluate the business proposal and decide on loan approval.
5. Subsidy disbursement: Once the loan is approved, the subsidy amount will be directly credited to the applicant’s bank account.

Additional Benefits for Beneficiaries

• Entrepreneurs under this scheme will receive ₹1 per digital transaction as an additional subsidy, up to ₹2,000 per year.
• The scheme is designed to promote entrepreneurship and economic growth in Uttar Pradesh by providing financial and business support to young individuals.

For more details and to apply, visit msme.up.gov.in.