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Uttar Pradesh MSME loan schemes: CM-YUVA interest-free loans and ODOP margin money

Uttar Pradesh runs two main loan-linked schemes for small businesses. CM-YUVA (Mukhyamantri Yuva Udyami Vikas Abhiyan) gives youth aged 21 to 40 loans up to ₹5,00,000 with a 100% interest subsidy for four years. The ODOP Margin Money Scheme pays a subsidy of up to 25% of project cost for businesses in their district's One District One Product line. Banks give the loans.

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Uttar Pradesh MSME schemes at a glance

Scheme What it gives Who it is for Source
CM-YUVA, phase 1 Loans up to ₹5,00,000 with a 100% interest subsidy for four years Youth aged 21 to 40, resident in Uttar Pradesh UP MSME 1-Connect
CM-YUVA, phase 2 Loans of ₹10,00,000 to ₹20,00,000 with a 50% interest subsidy for three years The scheme's second phase, as the state lists it UP MSME 1-Connect
ODOP Margin Money Scheme A subsidy of 10% to 25% of project cost, in tiers Anyone aged 18 or more setting up or expanding a unit in their district's ODOP product ODOP Uttar Pradesh

Uttar Pradesh has the second-highest number of registered MSMEs on the Ministry of MSME's Udyam dashboard: 1,12,90,789 as of 03-Oct-2026, including 57,55,087 micro enterprises on Udyam (Ministry of MSME Udyam dashboard).

CM-YUVA: the Mukhyamantri Yuva Udyami Vikas Abhiyan

CM-YUVA helps young people set up their own enterprises with interest-free loans (UP MSME 1-Connect).

  • Phase 1. Loans up to ₹5,00,000 with a 100% interest subsidy for four years (UP MSME 1-Connect).
  • Phase 2. Loans of ₹10,00,000 to ₹20,00,000 with a 50% interest subsidy for three years (UP MSME 1-Connect).

Who can apply for CM-YUVA

  • Aged between 21 and 40 years, and a permanent resident of Uttar Pradesh (UP MSME 1-Connect).
  • Passed class 8 or its equivalent, at the least (UP MSME 1-Connect).
  • Priority goes to applicants who have completed training under government schemes (UP MSME 1-Connect).

How to apply for CM-YUVA

Apply on the Directorate of Industries portal, diupmsme.upsdc.gov.in. Create a profile or log in, choose the scheme from the beneficiary section and fill in the details (UP MSME 1-Connect).

ODOP Margin Money Scheme

One District One Product (ODOP) picks a signature product for each district. The ODOP Margin Money Scheme gives a subsidy, called margin money, on the project cost of a unit in that product line. It is a subsidy, not a loan (ODOP Uttar Pradesh).

ODOP margin money by project cost

Project cost Margin money Source
Up to ₹25,00,000 25% of project cost, up to ₹6,25,000 ODOP Uttar Pradesh
₹25,00,000 to ₹50,00,000 20% of project cost or ₹6,25,000, whichever is higher ODOP Uttar Pradesh
₹50,00,000 to ₹1,50,00,000 10% of project cost or ₹10,00,000, whichever is higher ODOP Uttar Pradesh
Above ₹1,50,00,000 10% of project cost, up to ₹20,00,000 ODOP Uttar Pradesh

Who can apply for ODOP margin money

The scheme runs under a Government Order of 24-Sep-2018 that approved financial assistance under the ODOP programme (ODOP Uttar Pradesh). You pay the rest of the project cost from your own money and the bank loan (ODOP Uttar Pradesh).

CM-YUVA or ODOP or a central scheme?

  • Young first-time founder, small project: CM-YUVA phase 1 is built for this (UP MSME 1-Connect).
  • Your business is your district's ODOP product: the ODOP margin money tiers apply (ODOP Uttar Pradesh).
  • A larger loan with no collateral: read the CGTMSE guide.
  • A new unit with a central subsidy: read the PMEGP guide.

Each scheme sets its own rule on combining benefits, so ask the District Industries Centre before you apply to two.

Your next step

The bank decides the loan on your plan and record. Run the free loan readiness check to see how a lender may read your file, and read the project report guide. Other states are on the state schemes hub.

Frequently asked questions

Up to ₹5,00,000 in phase 1 with a 100% interest subsidy for four years, and ₹10,00,000 to ₹20,00,000 in phase 2 with a 50% interest subsidy for three years (UP MSME 1-Connect).

21 to 40 years (UP MSME 1-Connect).

Class 8 pass or equivalent (UP MSME 1-Connect).

25% of project cost up to ₹6,25,000 for projects up to ₹25,00,000, then lower percentages in tiers (ODOP Uttar Pradesh).

No. It is a subsidy that reduces your own contribution and the loan you need (ODOP Uttar Pradesh).

On the Directorate of Industries portal, diupmsme.upsdc.gov.in (UP MSME 1-Connect).

Yeh Uttar Pradesh sarkar ki yojana hai jisme 21 se 40 saal ke yuvaon ko ₹5,00,000 tak ka loan milta hai, aur chaar saal tak poora byaaj sarkar deti hai (UP MSME 1-Connect).

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