MSMEs (Micro, Small, and Medium Enterprises) are the backbone of the Indian economy, contributing considerably to the country’s GDP and job creation. Despite their relevance, small enterprises frequently encounter financial difficulties, such as the inability to obtain appropriate funding due to a lack of collateral or credit history.

In India, numerous state and central government financing schemes have been implemented to help MSMEs expand and prosper. These schemes provide financial support to small business owners, allowing them to satisfy their working capital and investment needs.

The loan schemes that are available for MSMEs in Uttar Pradesh will be the subject of this blog post. Each program will be thoroughly described, along with its benefits. Some of the best loan schemes that are available for MSMEs in Uttar Pradesh are as follows:

1. Mukhyamantri Yuva Swarojgar Yojana (MYSY)

This initiative is introduced by the government of Uttar Pradesh to promote self-employment prospects among the educated but unemployed young inside the state. The government also grants a 25% subsidy on the margin money necessary for loans. The following are its primary features:

• Maximum loan amount of Rs. 25 lakhs
• 6% interest rates for the initial three years
• 25% of margin money as a subsidy
• Qualifications for Educationgraduation from high school 
• Male/Female  

2. Mukhya Mantri Gramodyog Rojgar Yojana (MMGRY)

The Uttar Pradesh state government’s plan aims to increase self-employment prospects in rural areas by offering financial help to those starting micro-enterprises in the manufacturing, services, and commerce sectors. The scheme’s primary goal is to boost village industries like as khadi, pottery, weaving, woodwork, and food processing. Youth from Scheduled Caste/Tribe/Backward Caste (SC/ST/OBC) backgrounds would account for 50% of the recipients. The primary features are as follows:

• Amount of loan: Up to Rs. 10 lakh
• Interest rates range from 7 to 15%.
• Supplementary Preference: up to 25% of the project’s total cost Young people without jobs who have received technical training at ITIs and polytechnics
• Gender and Age Any gender over the age of 18

3. Mukhya Mantri Mahila Udyam Nidhi Yojana (MMUNY)

This program encourages women to become entrepreneurs by offering financial help for the start-up of small businesses. The primary goal of the scheme is to encourage female entrepreneurs. To be eligible for the initiative, the candidate must be female and a resident of Uttar Pradesh. Here are some of its features:

• Maximum loan amount of Rs. 10 lakhs
• Interest rates: 7–15%;
•  gender: women; 
• age range: 18–55

4. Prime Minister’s Employment Generation Programme (PMEGP)

The Government of India has launched a credit-linked subsidy system. The primary goal of the PMEGP is to promote and develop self-employment opportunities in both rural and urban areas. The primary goal is to create long-term jobs through micro-enterprises. Here are some of its key features:

• Maximum loan amount of Rs. 25 lakh
• Rates of interest Depending on a number of variables, including the bank and the borrower’s creditworthiness,
• Grant 25% to 35% of the project’s total cost
• Male or female gender
• Age range: 18–40 

5. Pradhan Mantri MUDRA Yojana (PMMY)

Launched in 2015, the Pradhan Mantri MUDRA Yojana (PMMY) is a prominent central government program. It offers microloans to small, non-farm, non-corporate businesses in both rural and urban locations.

Depending on the phases of a company’s growth and its finance requirements, PMMY offers loans in three categories:

• Shishu Mudra: INR 50,000 and more
• Rs. 50,001 to Rs. 5 lakh for Kishore Mudra
• Rs. 5 lakh to Rs. 10 lakh for Tarun Mudra

MUDRA loans are available through a variety of financial organizations, including public and private sector banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies.

PMMY, unlike other loan schemes, does not have age, gender, tenure, or interest rate requirements. All of these elements can vary depending on the loan type and the lending institution’s policies.

6. Stand-up India

Get up India is a 2016-launched central government initiative. It offers women and members of Scheduled Castes (SCs) and Scheduled Tribes (STs) bank loans to pursue business. This scheme does not allow loans to existing firms; instead, it only provides funds to launch new businesses. Regional rural banks (RRBs), small financing banks, and scheduled commercial banks are some of the banks that offer these loans.

Loan amounts under this scheme range from Rs. 10 lakhs to Rs. 1 crore. Interest rates and terms are subject to change based on a number of criteria, including the type of business, the lender’s credit policies, and other variables.