CM-YUVA: Interest-Free Loan up to ₹5 Lakh
What is the Scheme?
The Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA) gives UP's youth an interest-free loan of up to ₹5 lakh to start a new business — with 100% interest subvention, plus support on margin money. The guarantee-free loan comes with CGTMSE cover.
How Much Money Will You Get?
| What You Get | Details |
|---|---|
| Project loan | Up to ₹5 lakh (Phase 1) |
| Interest | 100% interest subvention — meaning the government pays the interest |
| Margin money subsidy | On a portion of the project cost (as per rules) |
| Guarantee | CGTMSE cover — no collateral |
Eligibility
- Age 21–40 years; resident of UP
- At least 8th pass (higher for some categories)
- A certificate from a government training scheme (Vishwakarma, skill development, etc.) or training from a recognised institute — or a degree/diploma
- Should not already be a beneficiary of another interest-subsidy loan
Documents Required
- Aadhaar, PAN, photo, age & residence proof
- Education/training certificate
- Project report (a simple format works)
- Bank passbook
How to Apply
- Register online at msme.up.gov.in (CM-YUVA section)
- Submit the form and project report
- District committee screening → forwarded to the bank
- Once the loan is sanctioned, interest subvention applies automatically
Frequently Asked Questions
Do I really not have to pay any interest?
For the specified period, the government pays the interest (100% subvention). You only need to pay the principal instalment — on time.
Which businesses are eligible?
Manufacturing, services, trading — most small-business patterns qualify. Negative-list businesses (like liquor) do not.
Will I get a bigger loan in the second phase?
Repaying the first loan on time makes you eligible for a bigger loan in the next phase.
Need help with your CM-YUVA application?
ClaimDesk (A NorthStar Advisors brand, Noida) handles everything from documentation to filing and follow-up. The first conversation is completely free.
MSMEUP.com is independent information & tools — free, and not run by any consultancy. ClaimDesk is a separate, private consultancy (a NorthStar Advisors brand) for those who want professional filing help; its fee is for that service, not a government charge, and using it is entirely optional — MSMEUP's guides and tools work the same with or without it.
Official portal: msme.up.gov.in Last reviewed: Aug 2026
This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.