Uttar Pradesh · Credit + Subsidy
Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA), Uttar Pradesh
- Maximum benefit
- Interest-free loan up to ₹5 lakh + margin money of 10% of project cost, up to ₹50,000
- Who can apply
- Micro enterprises, for specific activities only
- Status
- Open
Is CM-YUVA open? Key facts at a glance
CM-YUVA (Uttar Pradesh): Interest-free loan up to ₹5 lakh + margin money of 10% of project cost, up to ₹50,000.
Last verified: 26 Oct 2026. How we check our information
| Status | Open |
|---|---|
| Level | Uttar Pradesh State scheme |
| Type of benefit | Interest-free, Collateral-free Loan + Margin Money Subsidy |
| Maximum benefit | Interest-free loan up to ₹5 lakh + margin money of 10% of project cost, up to ₹50,000 |
| Project cost range | First phase: project up to ₹5 lakh (₹5–10 lakh may be financed, with no subsidy on the excess) |
| Who can apply | Micro enterprises (Manufacturing, Service). Only for: Only for Uttar Pradesh residents with at least eighth-pass education or certified training, who have not received an interest or capital subsidy under another State or Central scheme (PM SVANidhi excepted). |
| Implementing agency | Department of MSME & Export Promotion, UP (Directorate of Industries & Enterprise Promotion; District Industries & Enterprise Promotion Centres) |
| Where to apply | Directorate of Industries UP portal |
| Official notification | Read the notification (PDF) · notified 4 October 2024 |
| Last verified | 26 Oct 2026 · How we check |
What is CM-YUVA?
Uttar Pradesh’s self-employment campaign for young people, promulgated by Government Order No. 49/2024/1650/477/18-2-2024 of 4 October 2024 (MSME Section-2) and aiming to support about one lakh new entrepreneurs a year.
The GO covers manufacturing and service units (para 2(4) defines a service unit as one other than trading and manufacturing); the MSME 1-Connect portal also mentions trade, so a pure trading unit should confirm with the District Industries Centre.
It gives priority to unemployed youth, women, SC, ST, OBC and minority applicants and persons with disabilities.
In the first phase the State pays 100% of the interest on the bank loan for a project of up to ₹5 lakh, for four years from financing, every quarter, and bears the CGTMSE guarantee cost for four years; the loan has a six-month moratorium and penal interest is not subsidised.
Projects of ₹5–10 lakh may be financed, but no subsidy is paid on the excess.
The State also gives margin money of 10% of project cost or of ₹5 lakh, whichever is less (at most ₹50,000): it is bank-ended, adjusted in the loan account after the unit has run for four years, and recovered if the unit is not set up or closes within four years.
A second phase, for expansion, is open only to first-phase beneficiaries who repaid the principal within four years: 50% of the interest for three years on a loan of up to twice the first loan or ₹7.5 lakh, whichever is less, with no margin money.
Applicants must be 21 to 40, residents of Uttar Pradesh and at least eighth-pass, and must not have received an interest or capital subsidy under any other State or Central scheme (PM SVANidhi excepted); those trained under government schemes such as ODOP and Vishwakarma Shram Samman get priority.
Official notification (PDF) · notified 4 October 2024
What are the key benefits of CM-YUVA?
- First phase: interest-free loan for a project of up to ₹5 lakh — the State pays 100% of the interest for four years from financing, every quarter; six-month moratorium; penal interest is not subsidised.
- Collateral-free: the State bears the CGTMSE guarantee cost for four years (GO para 2(4)(छ), (ज), (झ), (ञ)).
- Margin money of 10% of project cost or of ₹5 lakh, whichever is less (up to ₹50,000): bank-ended, adjusted in the loan account after the unit has run for four years, and recovered if the unit is not set up or closes within four years (GO para 2(4)(च), (ट)).
- Projects of ₹5–10 lakh may be financed, but no subsidy is paid on the excess; the loan is composite with at least 10% as term loan, and buying land or a building is not covered (GO para 2(4)(क)–(घ)).
- Digital transactions: ₹1 per transaction, up to ₹2,000 a year (GO para 2(4)(न)).
- Second phase (expansion), only for first-phase beneficiaries who repaid the principal (with any penal interest) within four years: 50% interest subsidy for three years on a loan of up to twice the first-phase loan or ₹7.5 lakh, whichever is less, for a project of up to ₹10 lakh; no margin money; at least 10% term loan; the State bears the CGTMSE cost for three years. A unit may expand to a project cost of up to ₹20 lakh, but the subsidy stays at 50% of the interest on ₹7.5 lakh for three years (GO para 2(4)(ठ)–(थ)).
What could a unit get under CM-YUVA?
The ceiling the scheme sets. What a particular unit receives depends on its project cost, location and the conditions on this page, so no rupee figure is worked out here.
Up to the scheme’s limits: Interest-free loan up to ₹5 lakh + margin money of 10% of project cost, up to ₹50,000
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Mukhyamantri Yuva Udyami Vikas Abhiyan — Government Order No. 49/2024/1650/477/18-2-2024, 4 October 2024 (MSME Section-2, Government of UP; scanned Hindi, read page by page); age and education conditions from the UP MSME portal scheme pages.
Who can apply for CM-YUVA?
- Age 21 to 40; resident of Uttar Pradesh (GO para 2(3)(क); the State MSME portal says permanent resident).
- At least eighth pass or equivalent, or certified training, diploma or degree; priority to those trained under government schemes.
- Must not have received an interest or capital subsidy under any other State or Central scheme, PM SVANidhi excepted (GO para 2(3)(ङ)).
- Own contribution: 15% of project cost (general), 12.5% (OBC), 10% (SC, ST and divyang); 10% for every applicant in Bundelkhand, Purvanchal and the aspirational districts Chitrakoot, Chandauli, Sonbhadra, Fatehpur, Balrampur, Siddharth Nagar, Shravasti and Bahraich (GO para 2(4)(ङ)).
- Not for tobacco, gutkha or pan masala; alcohol or aerated drinks; firecrackers; or plastic carry bags under 40 microns (GO para 2(4)(फ)).
Eligible business types
MSME categories covered
Eligible industries
How do I apply for CM-YUVA?
- Register on the CM-YUVA page of the Directorate of Industries portal with Aadhaar OTP; the user ID and password arrive by SMS.
- Attend the mandatory counselling session (the link is sent by SMS), then complete the application from the applicant login with identity, age, training and project documents.
- The District Industries & Enterprise Promotion Centre, the district nodal agency, checks the application; the District Programme Management Unit chaired by the District Magistrate selects applicants and forwards them to the bank, and the margin money follows the loan (GO para 2(5), 2(6)(क)).
Apply at: Directorate of Industries UP portal
Which documents are needed for CM-YUVA?
- Aadhaar and identity proof
- Proof of age (21–40)
- Educational certificate (eighth pass or above) or training certificate
- Caste or disability certificate, if applicable
- Project report
- Proof of own contribution
Why are CM-YUVA applications rejected?
- Age outside 21–40
- Interest or capital subsidy already received under another State or Central scheme (PM SVANidhi excepted)
- Not a resident of Uttar Pradesh
- Activity on the negative list (tobacco, gutkha or pan masala; alcohol or aerated drinks; firecrackers; plastic carry bags under 40 microns)
- Second phase: first-phase loan not repaid within four years, or a first-phase defaulter
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about CM-YUVA
- Is CM-YUVA open?
- Yes, it is open for applications. Status last verified: 26 Oct 2026.
- Who can apply for CM-YUVA?
- Micro enterprises (Manufacturing, Service). Only for: Only for Uttar Pradesh residents with at least eighth-pass education or certified training, who have not received an interest or capital subsidy under another State or Central scheme (PM SVANidhi excepted).
- What is the maximum benefit under CM-YUVA?
- Interest-free loan up to ₹5 lakh + margin money of 10% of project cost, up to ₹50,000.
- How do I apply for CM-YUVA?
- 1. Register on the CM-YUVA page of the Directorate of Industries portal with Aadhaar OTP; the user ID and password arrive by SMS. 2. Attend the mandatory counselling session (the link is sent by SMS), then complete the application from the applicant login with identity, age, training and project documents. 3. The District Industries & Enterprise Promotion Centre, the district nodal agency, checks the application; the District Programme Management Unit chaired by the District Magistrate selects applicants and forwards them to the bank, and the margin money follows the loan (GO para 2(5), 2(6)(क)). Apply at: Directorate of Industries UP portal.
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