The Unemployed Youth Employment Generation Programme (UYEGP), introduced by the Micro, Small and Medium Enterprises (MSME) Department of the Government of Tamil Nadu, is a visionary initiative aimed at addressing unemployment among socially and economically disadvantaged sections of society. The scheme focuses on empowering educated and unemployed youth by enabling them to establish their own manufacturing, service, or business enterprises. With financial assistance in the form of loans and subsidies, UYEGP helps transform job seekers into job creators, fostering entrepreneurship and sustainable livelihoods.
What is the TN UYEGP MSME Loan?
The UYEGP provides loans of up to ₹15 lakhs for manufacturing enterprises and ₹5 lakhs each for trading and service projects. To make these ventures financially viable, the State Government offers a subsidy of up to 25% of the project cost, with a maximum subsidy limit of ₹2.50 lakhs. This program aims to uplift marginalized youth, enabling them to become self-reliant entrepreneurs.
Key Benefits of the Scheme
- Loan Assistance :
- Up to ₹15 lakhs for manufacturing enterprises.
- Up to ₹5 lakhs for trading and service enterprises.
- Subsidy Support :
- 25% of the project cost as subsidy (maximum ₹2.50 lakhs).
- Skill Development :
- Mandatory Entrepreneurship Development Programme (EDP) training to equip beneficiaries with the skills needed to run their enterprises.
- Inclusive Eligibility :
- Special provisions for SC/ST/MBC/BC/Minorities/Ex-Servicemen/Differently Abled/Transgender communities.
- Flexible Contributions :
- General category applicants contribute 10% of the project cost.
- Special category applicants contribute only 5%.
- Collaboration with Banks :
- Loans are disbursed through banks, ensuring transparency and ease of access.
Who is Eligible for the Scheme?
To avail the benefits of UYEGP, applicants must meet the following criteria;
- Residency :
- The applicant must be a permanent resident of Tamil Nadu.
- Age Limit :
- General category: Minimum 18 years and maximum 35 years.
- Special category (SC/ST/MBC/BC/Minorities/Ex-Servicemen/Differently Abled/Transgender): Minimum 18 years and maximum 45 years.
- Education :
- The applicant must have passed at least the 8th standard.
- Income :
- The annual family income should not exceed ₹5 lakhs.
- Project Cost :
- Manufacturing: Maximum ₹15 lakhs.
- Trading/Service: Maximum ₹5 lakhs.
- Entrepreneurial Training :
- Completion of mandatory EDP training.
- Contribution :
- General category: 10% of the project cost.
- Special category: 5% of the project cost.
How to Apply – Online Process
The UYEGP application process is entirely online, making it convenient and accessible for all eligible candidates. Here’s how you can apply;
- Visit the Official Website :
Go to the official website of the MSME Department, Government of Tamil Nadu. - Apply Online :
- Click on “Apply Online” and then select “New Application.”
- Register :
- Fill in your details such as name, date of birth, email ID, Aadhaar number, and mobile number to register.
- Log In and Fill the Form :
- After successful registration, log in and fill out all mandatory fields in the application form.
- Upload Documents :
- Upload all required documents (listed below) and submit the completed application form.
Post-Application Steps;
- Eligibility Verification :
- The District Industries Centre (DIC) verifies the submitted application.
- Interview Call :
- Shortlisted candidates will receive a call letter for an interview.
- Loan Sanction :
- Upon a successful interview, the loan application is recommended to the bank, which sanctions the loan.
- EDP Training :
- Attend the mandatory Entrepreneurship Development Programme (EDP) training and obtain a completion certificate.
- Submit EDP Certificate :
- Submit the EDP certificate along with other required documents to the bank.
- Loan Disbursement :
- The bank disburses the loan after verifying all documents.
- Subsidy Claim :
- The bank files a subsidy claim with the DIC, and the subsidy amount is deposited under TDR for 3 years. After this period, the subsidy is adjusted against the loan amount.
Documents Required
To ensure a smooth application process, gather the following documents;
- Identity proof (Aadhaar card, Election ID card, etc.).
- Copy of PAN card.
- Passport-sized photo.
- Income certificate.
- Educational qualification proof (Transfer certificate/Record sheet).
- Proof of age.
- Caste/community certificate.
- Ration card or nativity certificate (if applicable).
- Project report.
- Valid quotations with GST number.
- Certificates for Ex-Servicemen/Differently Abled/Transgender (if applicable).
- Bank account details.
- Affidavit on ₹20 non-judicial stamp paper, duly certified by a Notary Public.
- Rental/Lease agreement copy (if applicable).
Frequently Asked Questions (FAQs)
Q1. What are the eligibility norms for UYEGP?
Refer to the eligibility section above for detailed criteria.
Q2. Is EDP training compulsory?
Yes, attending EDP training is mandatory for all applicants.
Q3. Is collateral security required?
No, collateral security is not mandatory for loans under UYEGP.
Q4. Can existing units avail loans under UYEGP?
No, the scheme is designed for new enterprises only.
Q5. What is the repayment tenure under the scheme?
The repayment tenure is determined by the bank based on the project’s viability.
Q6. What is the lock-in period for the government subsidy?
The subsidy is locked in under TDR for 3 years before being adjusted in the loan amount.
Q7. Can the project be financed jointly from two sources?
No, projects cannot be financed jointly from multiple sources under UYEGP.
Q8. Can partnership concerns avail loans?
No, the scheme is available only for individual applicants.
Why Choose UYEGP?
The Unemployed Youth Employment Generation Programme is a lifeline for Tamil Nadu’s unemployed youth, particularly those from marginalized communities. By providing financial assistance, skill development, and subsidies, the scheme empowers beneficiaries to start their enterprises and achieve economic independence.
If you’re a young entrepreneur looking to turn your ideas into reality, UYEGP offers the perfect platform to kickstart your journey. Apply today and take the first step toward a brighter future!
