🧵 Key Zero‑Interest Loan Programs

1. Mission Shakti / SHG Interest-Free Scheme (Odisha)

Through the Mission Shakti initiative, the Odisha government allows around 6 lakh women self-help groups (SHGs) to avail loans up to ₹10 lakh per SHG without paying any interest. The scheme has been extended beyond the 2024–25 financial year, making the benefit ongoing. (Business Standard, The Times of India)

2. YSR Zero Interest Loan Scheme (Andhra Pradesh)

Andhra Pradesh revives its YSR Zero Interest Loan Scheme, where the state government covers the interest cost for loans taken by women’s self-help groups. Loan amounts typically range from ₹20,000 to ₹40,000 per group member. (GKToday)

3. Mukhyamantri Yuva Udyami Vikas Abhiyan (CM Yuva, Uttar Pradesh)

This UP MSME scheme offers interest-free, collateral-free loans of up to ₹5 lakh per youth entrepreneur. Launched in 2018 and expanded in 2024–25, over 40,000 beneficiaries have received funding to start ventures like catering, digital services, or small manufacturing. (The Times of India)

4. Bana Kaih (Mizoram Hand‑holding Scheme)

Mizoram’s flagship Bana Kaih programme (pilot phase) promises collateral-free loans up to ₹50 lakh, and if the entrepreneur runs the enterprise sincerely, they get 100% interest waiver, effectively making it interest-free. (The Indian Express)

🎯 Other Concessional or Subsidized Schemes (Not Fully Zero Interest)

PM Vishwakarma Kaushal Samman Yojana offers collateral-free loans to traditional artisans at a concessional rate of ~5% p.a., not zero interest, but heavily subsidized. (Wikipedia)
NSTFDC’s Adivasi Mahila Sashaktikaran Yojana, for Scheduled Tribe women entrepreneurs, provides small loans (up to ₹2 lakh) at 4% p.a. interest. (Wikipedia)
Khadi & Village Industries Commission (ISEC) offers working capital loans for Khadi producers at 4% p.a., with the subsidy borne by the commission. (Wikipedia)

✅ Comparison Table

Scheme / Program	Target Beneficiaries	Loan Limit	Interest Rate
Odisha Mission Shakti SHG Scheme	Women’s Self-Help Groups (Mission Shakti)	Up to ₹10 lakh	0% (government covers)
Andhra Pradesh YSR Zero Interest	Women’s SHGs	₹20k–₹40k/member	0%
UP CM Yuva Udyami Vikas Abhiyan	Youth entrepreneurs (MSME sector)	Up to ₹5 lakh	0%
Mizoram Bana Kaih Scheme	Women entrepreneurs (“progress partners”)	Up to ₹50 lakh	0% (if performance qualifies)
PM Vishwakarma Yojana	Traditional artisans/craftspeople	Varies	~5% p.a.
NSTFDC Adivasi Yojana	ST women trainees	Up to ₹2 lakh	~4% p.a.
ISEC (Khadi)	Khadi producers	Varies	~4% p.a.

📝 How to Apply & What to Know

State-run SHG schemes like those in Odisha and Andhra Pradesh typically require membership in recognized self-help groups and are administered via district-level banks or SHG federations.
UP’s CM Yuva applications can be submitted online through the MSME department portals, with required documents such as Aadhaar, business plan, and bank details. (The Times of India, The News Minute, GKToday, Business Standard, The Times of India, informalnewz.com, The Economic Times, The Times of India, moneyview.in, Wikipedia, Wikipedia)
Mizoram’s Bana Kaih is currently in pilot rollout; qualifying applicants are selected via state-level programs or competitions.
For schemes offering subsidized rather than fully interest-free credit, verify whether bank applies the subsidy upfront or adjusts interest periodically.

🛠️ Final Guidance

If you are a women SHG member in Odisha or Andhra Pradesh, or a young entrepreneur in Uttar Pradesh, these schemes provide genuine zero-interest financing with no collateral.
For those in other states, subsidies or low-interest credit may be available, but entirely zero‑interest offers are limited.
Always check official state government or MSME websites, or visit your local bank branch or SHG federation office to confirm eligibility, application process, and documentation.
Be cautious of unofficial offers that sound “too good” — a Reddit user recounted an alleged “interest-free” loan scam requiring a hefty processing fee and promotional tasks. (reddit.com)

Would you like help locating the official application link or contact information for any of these schemes in your region?

manoj meena

Hello friends, my name is Manoj Meena, and I’m a BA Final Year student. I have a deep passion for writing biographies because, in Hindi, there’s often a lack of detailed information about notable individuals. To bridge this gap, I collect extensive information and write biographies about popular personalities. I love sharing their stories and inspiring others through my work. You can also follow me on Instagram and Facebook to stay updated with my latest biographies and content. Connect with me to explore the fascinating lives of influential people!