Yogi Government Announces Interest-Free Credit Up To ₹1 Lakh For 1 Crore Women Ahead Of UP Polls

September 10, 2026

Ahead of the Uttar Pradesh Assembly elections, the Uttar Pradesh government led by Chief Minister Yogi Adityanath has announced a major financial initiative aimed at supporting women entrepreneurs in the state.

Under the proposed Uttar Pradesh Mahila Udyami Credit Yojana, one crore women are expected to receive interest-free credit of up to ₹1 lakh each in three instalments to start or expand small businesses and existing enterprises.

Three Instalments To Take Total Credit To ₹1 Lakh

Deputy Chief Minister Keshav Prasad Maurya announced the proposed interest-free credit scheme and said one crore women would be provided loans to expand small businesses and existing enterprises.

The first instalment is expected to be ₹20,000. Women beneficiaries who repay the amount on time would become eligible for a second tranche of ₹30,000, followed by a third tranche of ₹50,000 after repayment of the second amount.

The scheme is proposed to be linked to women associated with the Uttar Pradesh State Rural Livelihood Mission (UPSRLM), which was announced in the state’s 2026-27 Budget.

Keshav Prasad Maurya Directs Officials To Prepare Proposal

Maurya directed officials to prepare the proposal, following which a high-level meeting of the Rural Development Department was held at Yojana Bhawan to review preparations for the scheme.

As part of the proposed initiative, eligible women are expected to receive a special credit card that can be used to start a small business or expand an existing enterprise.

Banks have been asked to prepare a preliminary framework for the facility, while the Rural Development Department is working on the formal proposal.

UP Plans Digital ID Cards, Mahila Shakti Kendras

The state government is also preparing to strengthen the digital capabilities of women associated with self-help groups (SHGs).

Officials have been asked to explore digital identification cards with QR code features, which could be integrated with digital payments, digital marketing, e-commerce and other financial services.

The proposed ID cards are intended to help women access digital facilities, including online payments, marketing and sales.

The government is also considering setting up 100 Mahila Shakti Kendras.

The broader objective is to help women move beyond traditional self-help group activities and build sustainable micro-enterprises.

The proposed credit scheme comes amid heightened political attention on financial support for women ahead of the Uttar Pradesh Assembly elections. There had earlier been speculation about providing ₹50,000 in financial assistance to women, although no such announcement had been officially made.