Employment and jobs for youth have always been a top priority for Uttar Pradesh Chief Minister Yogi Adityanath since he took office. The Mukhyamantri Yuva Swarojgar Yojana (MYSY) has emerged as a game-changer for lakhs of youth in the state. This flagship self-employment scheme aims to empower educated but unemployed youth by providing financial assistance to set up micro-enterprises in industrial and service sectors, thereby reducing unemployment and promoting entrepreneurship.
Financial Assistance and Benefits
Under the scheme, banks offer loans up to Rs 25 lakh for industrial projects and up to Rs 10 lakh for service-oriented businesses. The state government contributes margin money up to 25% of the project cost, with a maximum of Rs 6.25 lakh for industry and Rs 2.50 lakh for services. This margin money converts into a grant after two years of successful operation. Beneficiaries from general category contribute 10% of the project cost, while special categories (SC/ST, OBC, minorities, women, and persons with disabilities) contribute only 5%. The project cost includes capital expenditure (excluding land) and one cycle of working capital. Financing is provided through nationalized banks, regional rural banks, and other scheduled commercial banks.
Eligibility Criteria
- Must be a permanent resident of Uttar Pradesh.
- Age between 18 to 40 years.
- Minimum educational qualification: High School (Class 10) pass or equivalent.
- Should not be a defaulter of any bank or financial institution.
- Must be unemployed (not employed in government or private sector).
- Should not have availed benefits under this or similar schemes earlier.
- Only one person per family can avail the benefit.
- Applicants must submit an affidavit confirming eligibility.
Target Beneficiaries
The primary beneficiaries are educated unemployed youth of Uttar Pradesh. Special focus and relaxed norms apply for SC/ST, OBC, minorities, women, and persons with disabilities, who enjoy lower contribution requirements and priority support. Relevant caste or disability certificates are required.
Application Process
The application process is entirely online through the official portal at msme.up.gov.in or diupmsme.upsdc.gov.in. Applicants need to register, fill in details, upload documents, and submit the application. Selected applicants receive loan sanction letters and margin money disbursement.
Achievements of the Scheme
Since its launch in 2018-19, the scheme has provided self-employment opportunities to more than 2.5 lakh educated unemployed youth. Over 68,000 youth have received loans totaling approximately Rs 2,751 crore, with the government disbursing margin money subsidies. More than 31,300 applications have been approved, leading to successful bank linkages and grant conversions. The scheme has significantly boosted MSME growth and inclusive entrepreneurship, especially among women, SC/ST, and minority communities.
