Mukhyamantri Yuva Swarojgar Yojana, popularly known as MYSY, is a self-employment scheme run by the Government of Uttar Pradesh. It is meant for educated but unemployed youth of the state who want to start their own manufacturing unit or service business instead of looking for a job. Under this scheme, the state government helps applicants get a bank loan up to ₹25 lakh and also gives a margin money subsidy, so that setting up a new enterprise becomes financially easier.
What Is Mukhyamantri Yuva Swarojgar Yojana
MYSY is implemented by the Directorate of Industries and Enterprise Promotion, Uttar Pradesh (UP MSME Department). The scheme helps unemployed, educated youth of the state set up their own enterprises, and it works through a combination of a bank loan and a margin money subsidy from the government, so that more people are motivated to become entrepreneurs and create job opportunities within the state.
In short, the government does not give cash directly into your hands. Instead, it stands behind you with a bank loan and reduces your repayment burden through a subsidy, so you can begin your business with lower financial pressure.
Key Objectives of the Scheme
- Encourage educated unemployed youth to become job creators instead of job seekers
- Provide easy and affordable access to institutional credit (bank loans)
- Reduce overall unemployment in Uttar Pradesh
- Support growth of micro, small and medium enterprises (MSMEs) in the state
- Create a culture of entrepreneurship, especially in rural and semi-urban areas
Mukhyamantri Yuva Swarojgar Yojana Highlights Table
| Particulars | Details |
|---|---|
| Scheme Name | Mukhyamantri Yuva Swarojgar Yojana (MYSY) |
| Launched By | Government of Uttar Pradesh |
| Implementing Department | Directorate of Industries and Enterprise Promotion (UP MSME) |
| Beneficiary | Educated unemployed youth of UP |
| Loan for Manufacturing Sector | Up to ₹25 lakh |
| Loan for Service Sector | Up to ₹10 lakh |
| Subsidy | 10% to 25% margin money, depending on category and area |
| Age Limit | 18 to 40 years |
| Minimum Qualification | High school (Class 10) pass |
| Mode of Application | Online only |
| Official Portal | diupmsme.upsdc.gov.in |
Loan Amount and Subsidy Structure
One of the biggest attractions of MYSY is the subsidy component. The subsidy percentage is not the same for everyone — it depends on the applicant’s category and whether the unit is set up in an urban or rural area.
Subsidy Rate Chart (Category-Wise)
| Applicant Category | Urban Area Subsidy | Rural Area Subsidy |
|---|---|---|
| General | 10% | 15% |
| SC / ST / OBC / Minority / Women / Ex-Servicemen / Divyang (including Northeast, Hill and Border areas) | 25% | 25% |
Some sources put the maximum subsidy figure a little higher for reserved categories, so always confirm the final percentage from the official portal or your district industries office before applying.
Example: How the Subsidy Works
Suppose you take a loan of ₹25 lakh for a manufacturing project.
- If you belong to the General category (urban area): subsidy = 10% = ₹2.5 lakh, so you repay only around ₹22.5 lakh to the bank
- If you belong to a reserved category: subsidy = 25% = ₹6.25 lakh, so you repay only around ₹18.75 lakh to the bank
This subsidy is adjusted against your loan, which directly reduces your EMI burden in the first few years of your business.
Loan Ceiling Comparison (Manufacturing vs Service)
Manufacturing Sector : ₹25,00,000 (maximum)
Service Sector : ₹10,00,000 (maximum)
| Sector | Maximum Loan Amount | Typical Use Case |
|---|---|---|
| Manufacturing / Industrial | ₹25 lakh | Small factories, production units, food processing, garment units |
| Service Sector | ₹10 lakh | Repair shops, salons, computer centres, small retail, transport services |
Eligibility Criteria for MYSY
Before applying, check whether you meet all the conditions below. Missing even one condition can lead to rejection of your application.
- Applicant must be a permanent resident of Uttar Pradesh
- Age should be between 18 and 40 years
- Minimum educational qualification: high school (Class 10) passed
- Applicant should not be a defaulter of any nationalized bank, financial institution or government institution
- Applicant should not have already availed benefit under Pradhan Mantri Rozgar Yojana, PMEGP, Chief Minister’s Employment Scheme or any other self-employment scheme of the Central or State Government
- Only one member from a single family can avail benefit of this scheme
- Applicant must submit a self-declaration/affidavit confirming eligibility
Family Income Limit (as reported by category)
| Category | Maximum Annual Family Income |
|---|---|
| General / OBC / Minority | ₹2 lakh |
| SC / ST | ₹2.5 lakh |
Note: Income limit norms can change with each budget cycle, so cross-check the latest limit on the official portal before you apply.
Documents Required for Mukhyamantri Yuva Swarojgar Yojana
Keep scanned copies of the following documents ready before you start the online application, otherwise the form may get stuck midway.
- Aadhaar Card (identity proof)
- Age proof — high school marksheet or birth certificate
- Educational qualification certificate
- Domicile / residence certificate of Uttar Pradesh
- Income certificate of family
- Caste certificate (if applying under reserved category)
- Bank account passbook (for loan and subsidy transfer)
- Passport-size photograph
- Detailed Project Report (DPR) / business plan
- Self-declaration affidavit stating no previous scheme benefit availed
Step-by-Step Online Application Process
The complete application process is online, so you do not need to visit any government office physically to submit the form.
Step 1: Visit the Official Portal
Go to the official website of the Directorate of Industries and Enterprise Promotion, Uttar Pradesh, and locate the MYSY / MMYSY section on the homepage.
Step 2: New Registration
Click on “New Registration”. If you are applying for the first time, choose the option for “MYSY – Mukhyamantri Yuva Swarojgar Yojana” from the list of schemes shown.
Step 3: Fill Basic Details
Enter your name, father’s name, date of birth, mobile number, email ID, district and Aadhaar number carefully, then generate your login ID and password.
Step 4: Login and Complete the Application Form
Login with your new credentials and fill out the detailed application form, including personal details, educational qualification, category, and business/project details.
Step 5: Upload Documents
Upload scanned copies of all required documents in the specified format and file size mentioned on the portal.
Step 6: Submit Project Report
Attach your Detailed Project Report (DPR) describing the nature of business, estimated cost, machinery required and expected income.
Step 7: Final Submission
Review all entered details carefully, then submit the form. Note down or save the application/reference number for future tracking.
Step 8: Verification and Bank Processing
After submission, your application goes through district-level verification. Once approved, it is forwarded to the linked bank for loan sanction, and subsidy is adjusted at the time of disbursement.
Application Journey at a Glance
| Stage | What Happens |
|---|---|
| 1. Registration | Applicant creates login ID on the portal |
| 2. Form Filling | Personal, educational and project details entered |
| 3. Document Upload | Aadhaar, income, caste, project report etc. uploaded |
| 4. District Verification | Task Force / District committee scrutinizes application |
| 5. Bank Forwarding | Approved case sent to the linked bank |
| 6. Loan Sanction | Bank sanctions loan as per project cost |
| 7. Subsidy Adjustment | Government subsidy adjusted in the loan account |
Benefits of MYSY at a Glance
- Financial assistance up to ₹25 lakh for manufacturing units
- Financial assistance up to ₹10 lakh for service sector units
- Margin money subsidy of 10% to 25% (or more for reserved categories), reducing loan burden
- Lower interest burden compared to a normal unsecured business loan
- Encourages formal, bank-linked entrepreneurship instead of informal borrowing
- Helps generate additional employment for others once the business is set up
- Special consideration for women, SC/ST, OBC, minority, ex-servicemen and Divyang applicants
Common Mistakes Applicants Should Avoid
- Applying with an incomplete or vague project report
- Uploading blurred or unclear scanned documents
- Ignoring the income certificate validity period
- Applying while already having benefited from another government self-employment scheme
- Not tracking application status regularly on the portal
- Providing bank account details that don’t match the applicant’s own KYC
Frequently Asked Questions (FAQs)
What is the age limit for Mukhyamantri Yuva Swarojgar Yojana?
The candidate must be between 18 to 40 years of age at the time of application.
What is the minimum qualification required for MYSY?
The minimum educational qualification of the applicant should be high school (Class 10) passed.
How much loan can I get under this scheme?
Eligible candidates can get financial assistance of up to ₹25 lakh for manufacturing and industrial enterprises, and up to ₹10 lakh for service sector enterprises.
Can I apply if I have already taken benefit under PMEGP or a similar scheme?
No. Applicants who have already availed benefits under the Pradhan Mantri Rozgar Yojana, the Prime Minister’s Employment Generation Program, the Chief Minister’s Employment Scheme, or any other self-employment scheme run by the Central or State Government are not eligible.
Is offline application accepted under MYSY?
No, only online applications submitted through the official portal are considered valid; offline or manual applications are not accepted.
Can more than one person from the same family apply?
No, benefit under this scheme is generally restricted to one member per family at a time.
What documents are mandatory for MYSY application?
Aadhaar card, age proof, educational certificate, income certificate, caste certificate (if applicable), bank passbook, project report and a self-declaration affidavit are the key mandatory documents.
Important Links
| Purpose | Link |
|---|---|
| Application Form Link | Click Here |
| Official Site | Click Here |
| Check Application Status | Click Here |
| Other Yojana Info | Click Here |
| UP Government Portal | Click Here |
| Home Page | Click Here |