The Uttar Pradesh government has accelerated the rollout of its flagship youth entrepreneurship initiative, offering financial support and incentives to help young residents establish their own businesses. The Chief Minister Yuva Udyami Vikas Abhiyan (MYUVA) is designed to encourage self-employment, reduce job dependency, and create new opportunities for economic growth across the state. According to the latest update released in February 2026, officials have been instructed to achieve all assigned targets under the scheme by March 15, 2026, highlighting the administration’s push to expand youth-led enterprises.

Ambitious Target to Build a New Generation of Entrepreneurs

The state government aims to transform job seekers into job creators. Under its long-term plan, authorities intend to help 1 lakh young individuals every year establish businesses. Over the next decade, the broader goal is to set up 10 lakh new micro and small business units throughout Uttar Pradesh. This initiative is expected to strengthen local economies, promote innovation, and generate employment at the grassroots level.

Two-Phase Financial Support Structure

The MYUVA scheme has been structured in two stages so that both beginners and growing businesses can benefit.

Phase One:
Entrepreneurs with project costs of up to ₹5 lakh can receive bank loans of up to ₹4.5 lakh. The most attractive feature is that this loan is completely interest-free and does not require collateral or guarantees. Borrowers also receive a six-month repayment holiday, after which they can repay the amount over a period of four years, making it easier to stabilize their business before repayments begin.

Phase Two:
Applicants who successfully repay their first loan become eligible for the second stage. In this phase, project costs can go up to ₹10 lakh, and the government provides a 50% interest subsidy on the loan. Additionally, any bank guarantee fee is paid by the government. This stage is intended for entrepreneurs ready to scale up operations and expand their ventures.

Eligibility Criteria for Applicants

To take advantage of the scheme, applicants must meet certain conditions:

• Must be a permanent resident of Uttar Pradesh

• Age should be between 21 and 40 years (relaxation may apply to specific categories as per rules)

• Minimum educational qualification: Class 8 pass

• Must have completed skill training under a government program such as Vishwakarma Shram Samman Yojana or ODOP training, or possess a diploma/degree from a recognized institution relevant to the proposed business.

Documents Required

Applicants need to prepare essential documents before applying:

• Aadhaar Card

• PAN Card

• Residence Certificate

• Bank Passbook

• Educational Certificates

• Detailed Project Report outlining business plan and estimated costs

The government has also introduced a digital dashboard and mobile app in 2026, allowing applicants to track application status online and ensure transparency throughout the process.

How to Apply Online

The application process is fully digital and user-friendly:

1. Visit the official MSME portal or the MYUVA website.

2. Register using Aadhaar number and mobile number.

3. Verify OTP sent to your phone.

4. Fill in personal and business details.

5. Upload required documents and submit.

This streamlined system has been introduced to minimize paperwork, reduce delays, and make the scheme accessible to youth across urban and rural areas.

Margin Money Requirement

Beneficiaries must contribute a small share of the project cost, known as "3852" data-end="3945">

• General category: 15%

• OBC category: 12.5%

• SC/ST/Divyang applicants: 10%

The government also provides a 10% subsidy on project cost, capped at ₹50,000, further reducing the financial burden on entrepreneurs.

Why This Scheme Matters

The MYUVA initiative reflects Uttar Pradesh’s broader strategy to strengthen its startup ecosystem and empower youth economically. By offering interest-free loans, subsidies, and simplified procedures, the government aims to remove financial barriers that often prevent talented individuals from launching their own ventures. For aspiring entrepreneurs, this scheme could be a significant stepping stone toward financial independence and business success.