Madhya Pradesh government runs Mukhya Mantri Yuva Udyami Yojana to give bank loans of ₹10 lakh to ₹2 crore to young people who want to set up their own industry in the state. Micro, Small and Medium Enterprises Department started it on 1 August 2014 and later changed its rules more than once.
Important note for applicants in 2026. New applications under Yuva Udyami Yojana are no longer taken separately. Madhya Pradesh government has merged this scheme, along with Mukhyamantri Swarojgar Yojana, into Mukhyamantri Udyam Kranti Yojana. On the MSME department website, the new circulars listed under Yuva Udyami Yojana are the Udyam Kranti Yojana order and guidelines. So fresh loan cases are now sanctioned under Udyam Kranti Yojana, and the old Yuva Udyami papers are kept only for record and for cases already sanctioned.
Mukhya Mantri Yuva Udyami Yojana Details
Idea behind this scheme was simple. Many young people in Madhya Pradesh have a business plan but no money and no property to keep as security. So the state decided to link them with banks, pay a part of the project cost as margin money, and also pay a part of the interest for some years. Loan size was kept between ₹10 lakh and ₹2 crore, which is meant for a proper industrial or service unit, not a small shop.
Under the old rules, general category applicants got margin money of 15 percent of the project cost, up to ₹12 lakh. Poor families holding a BPL card got 20 percent, up to ₹18 lakh. Interest subsidy was 5 percent a year on the capital cost of the project, 6 percent a year for women, for up to 7 years, with a limit of ₹5 lakh per year. Guarantee fee was also paid by the state for up to 7 years.
Applicant had to be a permanent resident of Madhya Pradesh, at least Class 10 pass, and between 18 and 40 years of age. Benefit was given only once in a lifetime. People already taking help under another state self-employment scheme, income taxpayer families and bank defaulters were kept out.
Now under Udyam Kranti Yojana, the loan range is ₹1 lakh to ₹50 lakh for manufacturing units and ₹1 lakh to ₹25 lakh for service and retail work. Instead of margin money, the state gives an interest subsidy of 3 percent a year for 7 years and pays the credit guarantee fee, so no property has to be kept with the bank. Age limit is 18 to 40 years and Class 8 pass is enough. Applications go through the same MPOnline MSME portal.
Scheme Highlights
| Detail | Information |
|---|---|
| Scheme Name | Mukhya Mantri Yuva Udyami Yojana |
| Launched By | Madhya Pradesh government, MSME Department |
| Start Date | 1 August 2014 |
| Present Status | Merged into Mukhyamantri Udyam Kranti Yojana, no separate new applications |
| Eligible People | Madhya Pradesh residents aged 18 to 40 years |
| Loan Amount (old rules) | ₹10 lakh to ₹2 crore |
| Loan Amount (Udyam Kranti Yojana now) | ₹1 lakh to ₹50 lakh |
| Application Mode | Online through MPOnline MSME portal |
| Official Website | msme.mponline.gov.in |
Who Can Apply
Rules for who can apply have stayed close to the old ones, with the school pass mark relaxed under the new scheme. Check these points before filling the form.
- You must be a permanent resident of Madhya Pradesh and able to show a domicile certificate for it.
- Your age on the date of applying should be between 18 and 40 years, going by your birth certificate or Class 10 marksheet.
- School qualification of Class 10 was needed under Yuva Udyami rules, while Udyam Kranti Yojana asks for Class 8 pass.
- You should not be a defaulter of any bank, and your family should not be paying income tax if the older condition applies to your case.
- Benefit is once in a lifetime, so people who already took help under another state self-employment scheme cannot apply again.
How to Apply Online
Whole process runs online on the MPOnline MSME portal, and the bank work starts only after your file reaches the District Trade and Industry Centre. Steps are given below.
STEP 1 - Open the MSME portal at msme.mponline.gov.in and go to the self-employment schemes section on the home page.
STEP 2 - Pick Mukhyamantri Udyam Kranti Yojana from the scheme list, since this is where Yuva Udyami cases now go, and choose the department that matches your line of work.
STEP 3 - Register with your name, mobile number and email, set a password, and note down the user ID that the portal shows.
STEP 4 - Log in and fill the application form with your personal details, education details, business plan, loan amount needed and the bank branch you prefer.
STEP 5 - Upload the scanned documents, submit the form and save the application number. Your file then goes to the District Trade and Industry Centre and after that to the bank for sanction, and you can track it on the same portal.
Documents Required
Keep the papers ready in scanned form before you sit to fill the form, because the portal asks for them in one go.
- Detailed Project Report of the business you want to start, with cost of machinery and working capital.
- Madhya Pradesh domicile or native certificate as residence proof.
- Class 10 marksheet, or Class 8 marksheet for Udyam Kranti Yojana, as education proof.
- Birth certificate or any other age proof along with Aadhaar and PAN.
- Rent agreement if the work place is rented, and price quotations for the machines you plan to buy.
Contact and Help
For any problem in the application, the District Trade and Industry Centre of your district is the first place to go. Office details of the MSME department are given on the MSME department contact page, and portal related problems can be raised through the help section of the MPOnline MSME portal. Bank level delay in sanction can also be taken up with the district industry office.
References
Official documents and pages for this scheme are listed below.
- MSME department self-employment schemes page
- New guidelines for Udyam Kranti Yojana applied to Yuva Udyami cases
- Udyam Kranti Yojana revised booklet 2026
- Old Yuva Udyami Yojana scheme circular
- Old Yuva Udyami Yojana application form
- Clarification on self-employment scheme circular
FAQ's
Is Mukhya Mantri Yuva Udyami Yojana still running in 2026?
Separate new applications are not taken. Cases now move under Mukhyamantri Udyam Kranti Yojana, and the MSME department itself lists Udyam Kranti Yojana papers as the new circulars for Yuva Udyami Yojana.
How much loan was given under Yuva Udyami Yojana?
Loan of ₹10 lakh to ₹2 crore, with margin money of 15 percent up to ₹12 lakh for general applicants and 20 percent up to ₹18 lakh for BPL card holders.
What loan can be taken now under Udyam Kranti Yojana?
₹1 lakh to ₹50 lakh for manufacturing and ₹1 lakh to ₹25 lakh for service work, with 3 percent interest subsidy for 7 years and no property as security.
Who can apply for the scheme?
A permanent resident of Madhya Pradesh aged 18 to 40 years who has passed at least Class 8 under the current rules and is not a bank defaulter.
Where is the application form filled?
On the MPOnline MSME portal at msme.mponline.gov.in, under the self-employment schemes section.
Which documents are asked at the time of applying?
Project report, Madhya Pradesh domicile certificate, school marksheet, age proof, Aadhaar, PAN, machine quotations and rent agreement if the place is rented.
Which department runs this scheme?
Micro, Small and Medium Enterprises Department of Madhya Pradesh, through the District Trade and Industry Centre in each district.
Can the benefit be taken twice?
No. Help under this scheme is once in a lifetime, and people already covered by another state self-employment scheme are not eligible.
Is any security or property needed for the loan?
No property is kept with the bank under Udyam Kranti Yojana, because the state pays the credit guarantee fee for the loan.
How long does sanction take?
After the district office forwards your file, the bank takes the final call, and applicants are told within about 15 days if any extra paper or information is needed.