Government Schemes

CM Swarozgar Yojana UP — Business Loan up to ₹10 Lakh

UP CM Swarozgar Yojana gives loans up to ₹10 lakh (40-50% subsidy) to unemployed UP residents for self-employment. Apply at diupmsme.upsdc.gov.in. Class 8 pass, age 18-55.

CitizenNest Editorial Team5 min read
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Disclaimer: This is an independent informational guide. We are NOT affiliated with any government body. Always verify on official websites.

What is CM Swarozgar Yojana UP?

Mukhyamantri Swarozgar Yojana (CMSY) is the Uttar Pradesh government scheme providing loans with margin money (subsidy) to unemployed educated youth for starting self-employment ventures in manufacturing, service, or trading. It is similar in structure to Yuva Swarozgar Yojana but covers a broader age range and has different subsidy tiers.

Loan Details

Category Max Loan Margin Money (Subsidy)
General / OBC ₹10 lakh 25% of project cost
SC / ST ₹10 lakh 50% of project cost
Women ₹10 lakh 35% of project cost
Ex-servicemen ₹10 lakh 25% of project cost

Margin money = subsidy deposited by government into your loan account, reducing repayment.

Key Features

  • No collateral for loans up to ₹10 lakh (CGTMSE guarantee)
  • Loan processed through nationalized banks, RRBs, cooperative banks
  • Can cover: manufacturing, service, and trading businesses

Who is Eligible?

  • Age: 18 to 55 years
  • Education: Minimum Class 8 pass
  • Residency: Uttar Pradesh permanent resident
  • Employment status: Unemployed or self-employed with no regular job
  • Not a defaulter on any previous government loan
  • One scheme per family (cannot have availed similar UP government loans earlier)

Priority Categories

  • SC/ST applicants — higher subsidy (50%)
  • Women applicants — 35% subsidy
  • Ex-servicemen — preference in selection
  • Minorities — preference under specific notified sub-schemes

What Businesses Are Covered?

Manufacturing:

  • Furniture making, bamboo products
  • Garment stitching, weaving
  • Food processing (pickles, papad, dairy)
  • Pottery, handicrafts

Service:

  • Salons, tailoring shops
  • Auto repair, welding workshop
  • Computer/mobile repair, DTH/cable service
  • Driving school, tour & travel

Trading:

  • Grocery/general store
  • Agricultural input shop
  • Electronics retail

How to Apply

  1. Go to diupmsme.upsdc.gov.in
  2. Click "आवेदन करें" under Mukhyamantri Swarozgar Yojana
  3. Register with Aadhaar + mobile OTP
  4. Fill in:
    • Personal details and education
    • Business type and project details
    • Project cost estimate
    • Preferred bank
  5. Upload documents
  6. Submit → note Application ID

After Submission

  • District Industries Centre (DIC) verifies and approves
  • Application forwarded to selected bank
  • Bank evaluates and sanctions loan
  • Margin money released by government upon loan disbursement

Documents Required

  1. Aadhaar card
  2. Class 8/10 certificate (education proof)
  3. UP residence proof (Aadhaar or voter ID with UP address)
  4. Caste certificate (SC/ST/OBC for applicable subsidy)
  5. Affidavit of unemployment (that applicant has no regular job)
  6. Business plan (1–2 page description of business, cost estimate)
  7. Bank account in own name
  8. Passport-size photograph

CMSY vs MYSY (Yuva Swarozgar Yojana) — Comparison

Feature CM Swarozgar (CMSY) Yuva Swarozgar (MYSY)
Age limit 18–55 years 18–40 years
Education Class 8 pass Class 10 pass
Max loan ₹10 lakh ₹25 lakh (industry)
SC/ST subsidy 50% 25%
Focus Broader self-employment Youth entrepreneurship

Frequently Asked Questions

I am 52 years old and want to open a tailoring shop. Am I eligible?

Yes — CMSY covers ages up to 55 years. A tailoring shop falls under the service sector. You would need to show you are not in regular employment.

Can a woman get both CMSY and another UP women's scheme?

You can access CMSY for a business loan. State women's skill/SHG schemes are separate. However, you cannot combine two government loans for the same business.

The DIC approved my application but the bank rejected the loan. What can I do?

Visit your DIC office with the rejection letter. The DIC can help escalate with the bank, suggest an alternative bank, or issue a fresh referral. Under government schemes, banks are expected to give serious consideration to DIC-recommended applications.

Is there an annual income limit for CMSY applicants?

There is no specific income cap mentioned — the eligibility is based on unemployment/self-employment status. The scheme is not exclusively for BPL families.

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