Interest-Free, No-Collateral Loans Up to ₹5 Lakh – A Big Push from the UP Government

National News: The Uttar Pradesh government has launched the Mukhyamantri Yuva Udyam Abhiyan Yojana to promote self-employment among the youth. Under this scheme, residents of UP between the ages of 21 and 40 can apply for interest-free loans of up to ₹5 lakh through government banking channels—all without needing to provide any collateral or guarantee.

Objective of the Scheme

The primary goal of this scheme is to create one lakh new entrepreneurs in the state and make them self-reliant. Instead of providing jobs, this initiative focuses on creating opportunities for young individuals to start their own businesses. The government aims to bring around 10 lakh people into the self-employment ecosystem over the next ten years.

Application & Process

• Applications must be submitted online via the UP MSME portal: msme.up.gov.in
• The application will be reviewed by the respective District Industry Promotion and Enterprise Development Center.

Once approved, it will be forwarded to a bank for final loan disbursement.

Eligibility & Conditions

• Age: 21–40 years
• Minimum Education: Class 8 pass
• Qualification: Candidates trained under the Vishwakarma scheme, ODOP, SC/ST training, or certified by a recognized skill training institute.

Financial Details

• Loan Amount: Up to ₹5 lakh
• Interest Rate: 0% (interest-free)
• Collateral: Not required
• Margin Money: Initially deposited, which converts into a 10% subsidy upon successful repayment in 4 years

After repaying ₹5 lakh successfully, the applicant becomes eligible for a second loan of up to ₹10 lakh, with a 50% interest subsidy on amounts up to ₹7.5 lakh for the next 3 years.

Who Will Benefit?

• Youth seeking self-employment
• Individuals with skill training/certification
• Candidates trained under Vishwakarma/ODOP schemes
• Special preference for SC/ST, differently-abled, and other underprivileged sections

Powerful step towards youth empowerment

The Mukhyamantri Yuva Udyam Abhiyan Yojana is a powerful step towards youth empowerment and economic independence in Uttar Pradesh. With interest-free loans, no guarantee requirements, and a simple application process, this scheme is set to become a game-changer for aspiring entrepreneurs across the state.