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MYSY: Mukhyamantri Yuva Swarojgar Yojana — Loan up to ₹25L + Margin Money

Loan up to ₹25L (industry) / ₹10L (services) + 25% margin moneyEducated YouthNew BusinessBank Loan SchemeLast reviewed: Aug 2026

What is the Scheme?

Mukhyamantri Yuva Swarojgar Yojana (MYSY) aims to give self-employment opportunities to educated youth in the state. It provides a bank loan of up to ₹25 lakh for setting up an industry and up to ₹10 lakh for the service sector — plus a 25% margin money subsidy from the state government, which significantly reduces the EMI burden of the loan.

How Much Money Will You Get?

SectorMax Bank LoanMargin Money Subsidy
Industry₹25.00 lakh25%, max ₹6.25 lakh
Service Sector₹10.00 lakh25%, max ₹2.50 lakh

The remaining amount comes as a regular bank loan at standard interest — unlike CM-YUVA, MYSY loans are not interest-free, so the margin money's benefit shows up as a lower principal and hence a lower EMI.

Calculate your margin money

Indicative only — 25% margin money capped at ₹6.25L (industry) / ₹2.5L (services) per this scheme's own cap, runs entirely in your browser. Actual sanction depends on bank appraisal and eligibility.

MYSY vs CM-YUVA — know the difference: the names sound similar but these are separate schemes. MYSY gives a bank loan (with interest) plus margin money subsidy, with a higher loan ceiling (up to ₹25L). CM-YUVA gives a loan of up to ₹5 lakh that is interest-free. Read both guides and pick whichever fits your project size — see the CM-YUVA guide.

Eligibility

Documents Required

How to Apply

  1. Create a profile / log in on the Directorate of Industries UPMSME portal (diupmsme.upsdc.gov.in)
  2. Select the MYSY scheme and fill in the application along with the DPR
  3. After district-level scrutiny, selected applications are forwarded to the concerned bank
  4. The bank sanctions and disburses the loan; the state government releases the margin money

Biggest Mistakes to Avoid

An incomplete or weak DPR (the most common rejection reason), mismatches in domicile/age proof, and being a prior defaulter with any bank/institution are the top three reasons applications get stuck. Slow bank follow-up can also delay disbursement by months.

Frequently Asked Questions

Can I apply to both MYSY and CM-YUVA?

Generally, one project can draw subsidy/margin money under only one self-employment loan scheme, not both. Pick whichever scheme suits your project better, and confirm with the portal if in doubt.

Can someone above 40 apply?

No, MYSY's age limit is fixed at 18–40 years.

When is the margin money released?

After the bank sanctions the loan and disburses the first instalment, the state government releases the margin money to the bank account — the exact timeline depends on the district and bank's process.

Need help preparing your DPR and application for MYSY?

ClaimDesk (A NorthStar Advisors brand, Noida) handles everything from DPR preparation to filing and bank follow-up. The first conversation is completely free.

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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 Source
Official portal: diupmsme.upsdc.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.