Yuva Aajeevika Loan Subsidy Yojana in Himachal Pradesh 2021 [Apply]

Yuva Aajeevika [Aajivika] Yojana in Himachal Pradesh 2020 (YAY) [Loan Subsidy Scheme, Interest Rate] Online Application Form, Registration Process, Eligibility Criteria, PDF Documents [युवा आजीविका योजना]

There is a long list of responsibilities that a state government has to carry out. One of these is offering adequate job opportunities for the people. Though there is a huge parity between the supply and demand, the state authority of Himachal Pradesh has taken a unique step to help youngsters in this respect. It has announced a new scheme, called Yuva Aajeevika (ajivika) Yojana that will offer credit to interested young applicants who desire to start their own business.

Yuva Aajeevika Yojana in Himachal Pradesh

Name of the scheme Yuva Aajeevika Yojana
Launched in Himachal Pradesh
Launched by Jai Ram Thakur
Date of announcement  July, 2018
Target beneficiaries Unemployed youngsters

Key features of the Mukhyamantri Yuva Ajivika Yojana

  1. Assisting the unemployed youngsters – A significant number of youngsters do not have jobs that pay well. Even if they desire to start their own business, lack of capital poses a threat. With this credit project, state will offer the capital on a credit basis so that these youngsters can start their own venture.
  2. Creating job opportunities – As more people open their own businesses, they will be able to generate adequate job opportunities for others as well. Thus, the scheme will indirectly play a vital part in curbing the menace of unemployment in HP.
  3. Encouragement to entrepreneurs – With the implementation of this project, the state government wants to offer adequate encouragement to people who want to start their own business. It will increase the total number of self-employed people in the state.
  4. Both urban and rural residents – No discrimination will be made on the applicants on the basis of where they live or operate. That means, applicants who live in rural or urban areas will be able to apply for this unique scheme.
  5. Reduction in state duty – Apart from this scheme, the state government also announced that in case an applicant needs to purchase some land to setup the business, he/she will have to pay only 3% stamp duty. Earlier this was 6%.
  6. Gratuity for females – Lastly, state CM also announced that a total of 25% of all female applicants, who get loan under this project, will also receive a gratuity. The gratuity amount will be 30%.

Characteristics Of Loan Amount  Under the Scheme

  1. Total amount of credit [Loan Amount] – It has been mentioned in the scheme draft that all candidates, enrolling for thus project will receive as much as Rs. 30 lakhs to start their venture.
  2. Subsidy on interest – All applicants who receive the financial assistance from the state authority will also receive a subsidy on the interest rate. The subsidy on interest will be offered at 5%.
  3. Tenure – The state government will continue to offer this subsidy on the interest rate for a total of three consecutive years.
Loan Amount Up to 30 Lakhs
Subsidy on loan 5%
Maximum Tenure 3 Years
Budget Sanction   75 Crore

Eligibility for application

  1. Residential criterion – As the state government of Himachal Pradesh will meet all financial requirements for implementation of the scheme, only those candidates will be able to apply who are living within the state permanently.
  2. Age criterion – It was mentioned in the official announcement that applicants must fall within the age bracket of 18 years and 35 years.
  3. Professional status – Only unemployed youth, meaning people who don’t have any steady source of income will be able to apply for this credit scheme.
  4. No bar on caste or religion – Young candidates, belonging to all castes, economic groups and financial backgrounds will be able to get this credit from the state government.
  5. No bar selected business – The money can be used for starting any form of business, as long as the candidate stays and operated inside the state.

Documents required for application

  1. Residential proof – Due to the residential criterion, all applicants must possess their legal residential certificates, which highlight that they are actual residents of Himachal Pradesh.
  2. Age proof – As there is an age related criterion, applicants need to provide an age certificate as well.
  3. Unemployment certificate – As the scheme has been implemented for the betterment of those who do not have any employment, all applicants have to submit an official declaration stating that they are not associated with any job that is generating a steady salary.

Application Form and Apply Procedure

It is a new scheme and has just been launched. However, it was mentioned that Panchayati Raj Department of Himachal Pradesh has already charted out the implementation and application related guidelines. Those have been forwarded to state government for the final green signal. Once this is done, respective department will announce the application procedure and announce the roll-out date.

To make this scheme effective, the state government will have to shell out a significant amount from its coffers. For the time being, official announcement states that around Rs. 75 crore has been set aside to meet the financial requirements of this scheme.

If the scheme becomes a success, then it will uplift the overall status of the state. The credit scheme will send out a message that the state is ready to back their efforts. The low interest credit will offer these youngsters they support they require to take the first step.

Other Schemes 

  1. CM Mathrushree Scheme Karnataka
  2. Biju Yuva Sashaktikaran Scheme Odisha 2019 
  3. MUDRA Loan Scheme
  4. Ayushman Bharat Yojana 


  1. I have 1 year manufacturing experience in pipe fitting. I want to establish a pipe fitting factory in gagret. So I need the loan

  2. I want to open gym and fitness centre our city.I have experience 4 years & certificate also.how can i i apply for a loan?please help me…..because i am middle class family..

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