UP Mukhyamantri Yuva Swarozgar Yojana — ₹25 Lakh

What is UP Mukhyamantri Yuva Swarozgar Yojana?

Mukhyamantri Yuva Swarozgar Yojana (MYSY) is the Uttar Pradesh government's scheme to promote self-employment among educated unemployed youth by providing loans with a margin money (subsidy) to start manufacturing, service, or trading businesses.

Key features:

• Loan up to ₹25 lakh for industry/service sector
• 25% margin money (subsidy) — maximum ₹6.25 lakh
• Loan processed through nationalised banks, RRBs, or cooperative banks
• Age: 18 to 40 years
• Minimum education: Class 10 pass
• No collateral for loans up to ₹10 lakh (CGTMSE covered)

Loan Details

The margin money is deposited by the government into the loan account — reducing your repayment obligation. You repay only the balance amount.

Who is Eligible?

• Must be 18 to 40 years old
• Must be an Uttar Pradesh resident
• Minimum education: Class 10 (High School) pass
• Should not be employed in any government/private job
• Should not be a defaulter on any previous government loan
• One application per family

Priority categories (in case of oversubscription):

• SC/ST applicants — additional preference
• Women applicants — preference
• Minorities — preference under specific sub-components

How to Apply — Step by Step

1. Go to diupmsme.upsdc.gov.in
2. Click "आवेदन करें" (Apply) under Mukhyamantri Yuva Swarozgar Yojana
3. Register with Aadhaar + mobile OTP
4. Fill the application form:
   • Personal details (name, DOB, address)
   • Business plan / project type
   • Project cost estimate
   • Preferred bank branch for loan
5. Upload documents
6. Submit → note Application ID

After submission:

• District Industries Centre (DIC) verifies the application
• Application forwarded to the bank
• Bank evaluates and sanctions loan
• Margin money released to bank by government
• Remaining loan disbursed to your account

Documents Required

1. Aadhaar card
2. Class 10 certificate (education proof)
3. UP residence proof — Aadhaar, voter ID with UP address
4. Age proof (Aadhaar with DOB)
5. Business plan / project report (brief description — 1-2 pages)
6. Caste certificate (SC/ST for priority)
7. Bank account in own name
8. Passport-size photograph

What Businesses Are Covered?

Industry sector (up to ₹25 lakh):

• Food processing units (pickle, bakery, spice)
• Small-scale manufacturing
• Agro-processing
• Handicraft production units

Service sector (up to ₹10 lakh):

• Salons, tailoring shops
• Driving school, motor garage
• Computer training centre
• Healthcare (small clinic, diagnostic lab)

Trade (up to ₹10 lakh):

• General store, grocery shop
• Agricultural input shop
• Mobile/electronics retail

Frequently Asked Questions

Is the margin money (25%) a loan or a grant?

The margin money is essentially a government subsidy — it is deposited into your loan account, reducing the loan principal you need to repay. You do not repay the margin money portion.

My business is in another state but I live in UP. Am I eligible?

The business should ideally be in Uttar Pradesh. If your business is in another state, consult the DIC office.

I already have a business. Can I apply for expansion?

MYSY is primarily for new business start-ups. Existing businesses seeking expansion may not qualify. Check with your District Industries Centre for the current year's eligibility criteria.

I applied but the bank rejected my loan. What to do?

If the DIC has approved your application but the bank rejected the loan, contact your DIC. They can help escalate with the bank or suggest an alternative lending institution.

Is there an income limit?

No explicit income limit — but you must be unemployed (not holding a government or private job).

Official Links

• Apply: diupmsme.upsdc.gov.in
• MSME UP: msme.up.gov.in
• Contact: District Industries Centre (DIC) in your district
• Helpline: 0522-2235256 (UP MSME / Industries Department)