THE CREDIT LANE
About this funding solution
Mukhyamantri Yuva Swarozgar Yojana (MYSY) was created to give Uttar Pradesh's educated but unemployed youth a route into self-employment in the industry and service sectors, through a margin-money grant and interest support rather than a standard commercial loan.
In its current operating form — aligned with the state's broader CM-YUVA push — eligible applicants can access collateral-free financing up to ₹5 lakh with a 10% margin-money subsidy on total project cost, removing the two biggest barriers first-time entrepreneurs face: security and upfront equity.
Special provisions apply for SC/ST and women applicants, who receive enhanced margin-money and interest support beyond the standard terms — reflecting the scheme's explicit focus on widening access to first-generation entrepreneurship.
*Reflects CM-YUVA alignment; SC/ST and women applicants receive enhanced margin-money and interest support.
Who is this solution for?
For educated, currently-unemployed individuals in UP setting up their very first enterprise — not an expansion or working-capital product.
- Educated but currently unemployed resident of Uttar Pradesh
- Setting up a new enterprise in the industry or service sector
- Have a workable business plan for a first-time venture
- Fall under SC/ST or women categories for enhanced scheme benefits
Why consider this funding route?
Collateral-free financing
Up to ₹5 lakh in financing without pledging security.
Margin-money subsidy
10% of total project cost covered as a subsidy, reducing promoter contribution.
SC/ST & women enhancements
Additional margin-money and interest support for eligible categories.
Business-plan support
Guidance structuring a bankable plan before the district committee review.
How it works
Eligibility & plan preparation
Applicant eligibility confirmed and a business plan drafted for review.
Online application
Application submitted via the UP MSME/self-employment portal.
District committee screening
District-level committee reviews the plan and applicant eligibility.
Bank sanction & disbursal
Empanelled bank sanctions financing; margin-money subsidy credited alongside.
UP Policy Scheme Subsidy Estimator
Use the sliders below to get an indicative estimate. Final terms are subject to formal underwriting and lender / investor committee assessment.
Client experience
FAQs
Eligibility is based on educational qualification and current unemployment status at the time of application — exact age and qualification bands are confirmed during the eligibility check, as they're periodically revised.
Women are explicitly eligible, with enhanced margin-money and interest support built into the scheme's special provisions.
No — this scheme is specifically for setting up a new enterprise, not for working capital or expansion of an already-running unit.
An empanelled bank sanctions the financing and the margin-money subsidy is credited alongside disbursal, per the scheme's process.
Check Eligibility
Submit details for UP Govt MSMY (Mukhyamantri Yuva Swarozgar Yojana). Our desk reviews profile variables and calls you back the same working day.