In Uttar Pradesh, the CM Yuva Udyami Yojana has become a successful support system for young people wanting to become self-employed. Thousands of youth have already used the scheme to launch their small businesses. Now, under the second phase, the government is giving even more support by offering a loan of up to ₹7.5 lakh with 50% interest subsidy—and that too without any guarantee.
Let’s break down how you can get this second loan, what conditions you must meet, and how much benefit you can expect.
Who Can Apply for the ₹7.5 Lakh Loan?
To be eligible for this second phase loan under the CM Yuva Entrepreneur Scheme, you must have already taken and successfully repaid your first loan. In the first phase, the maximum loan allowed was ₹5 lakh, and you had to repay it in 4 years.
If you have completed your EMIs on time and cleared the first loan fully, you are eligible to apply for the second loan.
Business Expansion with ₹10 Lakh Project
In the second phase, you can start or grow a business with a project worth up to ₹10 lakh. From this, you can apply for a loan of ₹7.5 lakh.
However, the loan amount and subsidy depend on how much loan you had taken earlier.
Here’s how it works:
- If your first loan was ₹3 lakh and now you apply for ₹7.5 lakh, you will get interest subsidy only on ₹6 lakh (which is double your first loan).
- If your first loan was ₹4 lakh, you will get interest subsidy on the full ₹7.5 lakh, since it is less than double the first loan.
- The maximum loan subsidy limit is capped at ₹7.5 lakh.
This setup helps honest and disciplined borrowers to expand their work easily.
50% Interest Subsidy for 3 Years
The best part of this second loan is the interest benefit:
- You get 50% subsidy on interest for up to ₹7.5 lakh.
- This interest benefit is available for the first 3 years only.
- After 3 years, you will have to pay the full interest rate as per the bank or lender.
- No personal guarantee is needed, which removes a big burden for many youth.
- However, your CIBIL score will still be checked to confirm your creditworthiness.
Margin Money Requirements (Based on Category)
Just like in the first phase, you need to pay some margin money. This depends on your category:
| Category | Margin Money |
| General | 15% |
| OBC | 12.5% |
| SC/ST/Divyang/Backward Class | 10% |
| Aspirational Districts* | 10% |
*Districts include Chitrakoot, Chandauli, Fatehpur, Balrampur, Siddharthnagar, Shravasti, Bahraich.
How to Apply Online for CM Yuva Entrepreneur Scheme Phase 2
Applying for this loan is simple and fully digital. Here’s what you need to do:
- Visit the official CM Yuva Udyami Yojana website.
- Login using your registration ID and password from the first phase.
- Choose the Phase 2 application form.
- Fill in all required details including project cost, loan requirement, and personal info.
- Upload the necessary documents like ID proof, previous loan repayment record, and a new project report.
- Submit the application for further processing.
Once your application is reviewed and approved, the loan will be disbursed by the assigned bank.
