AI SummaryUttar Pradesh government is preparing to start Mahila Udyami Credit Yojana, a new interest free loan scheme for around 1 crore women in self help groups (SHGs). Under this scheme, each woman can get up to ₹1 lakh at 0% interest, given in three parts starting at ₹20,000.
UP Budget 2026-27, presented in February 2026, first announced this scheme and kept ₹200 crore for it under the name Uttar Pradesh Mahila Udyami Credit Card Yojana. In September 2026, Deputy Chief Minister Keshav Prasad Maurya reviewed the plan at a Rural Development Department meeting at Yojana Bhawan, Lucknow, and asked officials to prepare the formal proposal. Banks have already drawn up a basic framework for the loan.
Uttar Pradesh Mahila Udyami Credit Yojana 2026 - How the ₹1 Lakh Loan Scheme Works
Full ₹1 lakh will not be provided at once under the scheme, instead each new loan opens only after the earlier one is paid back on time.
- First loan of ₹20,000 to start a small business or grow an existing one.
- Second loan of ₹30,000 once the first ₹20,000 is repaid on time.
- Third loan of ₹50,000 after the second loan is fully repaid.
Women will get a special credit card to use this money for their work. No interest will be charged, so a woman pays back only what she borrowed. The first ₹20,000 is planned for December 2026, and Maurya has asked officials to send payments by DBT straight to bank accounts.
Who can get this UP loan scheme for self help group women
Only women linked with SHGs under Uttar Pradesh State Rural Livelihood Mission (UPSRLM) are covered. UPSRLM runs the National Rural Livelihood Mission in the state and works under the Rural Development Department. Age limit, income limit and the document list will come with the final rules.
| Detail | Information |
|---|---|
| Scheme Name | Uttar Pradesh Mahila Udyami Credit Yojana |
| Announced In | UP Budget 2026-27 |
| Budget | ₹200 crore |
| Department | Rural Development Department, UPSRLM |
| Eligible People | Around 1 crore women in UPSRLM self help groups |
| Benefit Amount | Up to ₹1 lakh (₹20,000 + ₹30,000 + ₹50,000) |
| Interest Rate | 0% |
| First Instalment | Planned for December 2026 (not notified yet) |
| Official Website | upsrlm.org |
How to apply for 0% interest loan scheme in UP
There is no application form, portal or last date announced by the state government as of now. Details will come after the government approves the Rural Development Department's proposal.
Women who are not in an SHG can ask the SHG in their village or the UPSRLM block office about joining one. It is not confirmed whether women who join now will qualify.