UP Government Relaxes Key Rule in CM Yuva Udyami Yojana: Now Get Loans Without Mandatory Training

 In a significant move aimed at boosting youth entrepreneurship, the Uttar Pradesh government has relaxed a key eligibility condition under its flagship CM Yuva Udyami Yojana. The scheme, which offers interest-free loans up to ₹5 lakh to young entrepreneurs, has now eliminated the requirement of mandatory training for certain applicants — a step expected to widen access and simplify the application process.

Under the new guidelines, applicants who hold a technical or professional diploma or degree will no longer need to undergo separate training to qualify for the scheme. Even a recognized certificate course in a relevant field will be considered sufficient, enabling aspiring entrepreneurs to directly submit their project proposals to banks for loan processing.

This update marks a major shift in how the scheme is administered. Previously, every applicant was required to submit a skill training certificate related to the business they intended to start, often under the state’s Skill Development Program. That requirement often created a barrier for educated youth who already had professional qualifications but lacked the specific training certificate.

Rising Demand for CM Yuva Udyami Yojana

The easing of rules seems timely, given the overwhelming response the scheme has received. In the first 30 days of the current financial year alone, over 48,000 applications have already been submitted. The state government had initially set a target to approve 1.5 lakh loans this year, following last year's massive turnout, where 1.74 lakh applications were received against a target of just one lakh.

Districts like Jaunpur, Agra, and Hapur have emerged as frontrunners in terms of applications, indicating the growing popularity and effectiveness of the scheme in promoting self-employment and micro-entrepreneurship.

What This Means for New Applicants

Earlier, applicants were expected to submit educational qualification certificates alongside skill certification while applying for the scheme. Now, if you hold a diploma, degree, or certification in a business-relevant technical or professional course, your application can be processed directly by the banks. You can launch a project valued up to ₹5 lakh and get up to 90% loan coverage, interest-free and without collateral.

This change eliminates a key procedural hurdle and encourages more youth to pursue their business dreams without worrying about additional certifications or training modules.

No Degree? No Worries — PM Scheme Offers a Solution

For those who don’t possess a degree, diploma, or professional certification, there’s still a way forward. The Pradhan Mantri Rozgar Srijan Karyakram (PMEGP) offers a viable alternative. Interested individuals can visit udyami.org.in and register for the Entrepreneurship Development Program (EDP) training. The course offers 30 hours of online or offline training, which makes you eligible to apply under the CM Yuva Udyami Yojana after completion.

Why This Matters

The relaxed rule is expected to significantly boost the accessibility and efficiency of the CM Yuva Udyami Yojana. By aligning the eligibility criteria with the real-world qualifications of young professionals, the government is signaling its commitment to reducing red tape and promoting a startup-friendly ecosystem in the state.

With youth unemployment being a pressing issue, schemes like this — especially when made more accessible — offer a lifeline for thousands looking to start their entrepreneurial journey. And now, with the new relaxed norms, many more aspiring business owners can take the leap without additional training roadblocks.