Yogi Government Unveils Interest-Free Startup Loans: Complete Plan Revealed by MSME Department

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Yogi government of Uttar Pradesh will provide interest free loans to the youth for startups. The state government has set a target of providing interest-free loan of Rs 5 lakh to one lakh youth every year for starting startups. Yogi government has set an ambitious target of creating 10 lakh young entrepreneurs in the state in the next ten years.

Chief Minister Yogi’s ambitious scheme ‘Mukhyamantri Yuva Udyami Vikas Abhiyan’ is going to be started in the state soon. For this, the Chief Minister has instructed the officials of the Micro, Small and Medium Enterprises (MSME) Department to prepare a complete action plan and present it before him as soon as possible.

To promote entrepreneurship among the youth of the state, Yogi government will prepare one lakh young entrepreneurs every year through this scheme. For this, the government will provide interest free loans for projects up to Rs 5 lakh. Yogi government has also made a provision of Rs 1000 crore for this scheme in the budget 2024-25.

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MSME department officials said that this is a new initiative of the Yogi government with the aim of connecting the educated and trained youth of the state with self-employment and setting up new enterprises as well as creating employment in rural and urban areas. Under this scheme, interest free loans up to a maximum of Rs 5 lakh will be given to projects in the industry and service sector. Under this Self-Employment Mission, the target is to directly benefit 10 lakh units in the next 10 years by financing one lakh units every year.

Beneficiaries trained in various training schemes run by the government such as Vishwakarma Shram Samman Yojana, One District One Product (ODOP) Training and Toolkit Scheme, Scheduled Caste, Tribe, Other Backward Class Training Scheme, Skill Upgradation run by Uttar Pradesh Skilled Development Mission etc. Will be able to get benefits. Apart from this, youth having certificate course, diploma and degree from any school or educational institution will also be able to get benefits under this scheme.

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Under the scheme, if a unit successfully repays the first loan, then it will be eligible for the second phase of financing, in which a composite loan of double the first phase loan or up to a maximum of Rs 7.50 lakh can be given. Along with this, arrangements for grants have also been made to promote digital transactions.

The process of applying for the scheme will be online. In this, CGTMSE coverage will be provided to all loans received from banks and financial institutions. Funding for this scheme will be available from nationalized, scheduled, rural banks, SIDBI and all financial institutions notified by the Reserve Bank of India.

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First Published – March 3, 2024 | 6:25 PM IST

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