To support the livelihoods of Non-Resident Tamils who returned home due to the COVID-19 pandemic, the Government of Tamil Nadu launched the Migrants Employment Generation Programme (MEGP). This initiative empowers returnees to transform their skills into self-sustaining microenterprises, thereby promoting entrepreneurship and generating employment across rural and urban areas of the state.

Key Highlights of the MEGP Loan Scheme

• Scheme Name: Migrants Employment Generation Programme (MEGP)
• Launched By: Government of Tamil Nadu
• Nodal Agency: Commissionerate of Non-Resident Tamils
• Implementing Agency: District Industries Centres (DICs) and Regional Joint Director (Chennai)
• Target Group: Covid-19 returnee migrants (Non-Resident Tamils)
• Loan Amount: Up to ₹15 lakhs for Manufacturing; ₹5 lakhs for Service/Trading
• Government Subsidy: 25% of project cost (Max ₹2.5 lakhs)
• Promoter Contribution: 10% (General) | 5% (Special Categories)
• Collateral Requirement: None
• Application Mode: Online
• Training Required: 2-day Entrepreneur Development Programme by EDI

Benefits of the Scheme

• Government subsidy up to 25% of project cost, subject to a maximum of ₹2.5 lakhs
• Collateral-free loan through banks under CGTMSE
• Subsidy deposited in Term Deposit Receipt (TDR) for 3 years and later credited to the loan account
• Dedicated training and marketing support via exhibitions and buyer-seller meets
• Flexible repayment schedule: 5 years, with a 6-month moratorium

Eligibility Criteria

• Returned to Tamil Nadu on or after 01.01.2020 due to Covid-19
• Age: 18–45 years (General) | Up to 55 years for SC/ST/BC/MBC/Minorities/Women/Transgender/Differently Abled
• Minimum Education: 8th Standard pass
• Family Income: Less than ₹5.00 lakhs per annum
• Promoter’s Contribution:
• 10% (General Category)
• 5% (SC/ST/BC/MBC/Minorities/Women/Transgender/Differently Abled)
• Should not have availed similar assistance under any other Government subsidy-linked scheme
• No history of default with banks or financial institutions

Project Cost Limits

• Manufacturing Sector: Up to ₹15,00,000
• Service/Trading Sector: Up to ₹5,00,000
• Land and building costs are not included in the project cost
• Cost must be techno-economically viable

Activities Covered

• All viable manufacturing, trading, and service sector activities
• Agricultural operations like crop raising are excluded
• Emphasis on skill-based microenterprises

How to Apply – Online Process

Online Application Steps:

1. Visit the Official Website of the Tamil Nadu MSME Department

2. Click on “Apply Online” and then “New Application”

3. Register with personal details – Name, DOB, Email, Aadhaar, Mobile Number

4. Log in and fill out all mandatory fields

5. Upload the required documents and submit the application

Post-Submission Process:

1. The application is reviewed by the District Industries Centre (DIC)

2. Placed before the District Task Force Committee (DTFC)

3. Shortlisted applicants are interviewed by bank officials for provisional loan sanction

4. Selected applicants undergo a 2-day Entrepreneur Development Programme (EDP) conducted by EDI

5. On completion, the promoter’s contribution is deposited, and the loan is disbursed in phases

6. Government subsidy is processed and held in TDR for 3 years, then credited to the loan account

7. The scheme’s progress is reviewed by the District Collector and the State Level Bankers Committee (SLBC)

Flow Chart of the Scheme

Essential Documents

• Aadhaar / Voter ID (Identity proof)
• PAN Card
• Passport-size Photo
• Proof of Educational Qualification
• Age Proof
• Caste/Community Certificate (if applicable)
• Residence Certificate
• Ex-Serviceman/Disability/Transgender certificate (if applicable)
• Bank Account Details
• Additional documents as requested by the DIC/Bank

Frequently Asked Questions (FAQs)

Q: Who is eligible for the MEGP scheme?
Returnee Tamils due to Covid after 01.01.2020, aged 18–45 (up to 55 for special categories), with a family income below ₹5 lakh and a minimum 8th pass.

Q: What is the maximum subsidy offered?
25% of the project cost up to ₹2.5 lakhs.

Q: What sectors are eligible under MEGP?
Manufacturing, trading, and service sectors (excluding direct agriculture).

Q: Is EDP training mandatory?
Yes, a 2-day EDP training by the Entrepreneur Development Institute is mandatory.

Q: What is the promoter’s contribution?
10% for the General category and 5% for Special Categories.

Q: What is the interest rate and repayment period?
Normal bank interest rate, with repayment over 5 years and a 6-month moratorium.

Q: Can partnership firms apply?
No, only individual beneficiaries are eligible.

Q: Is collateral required for the loan?
No, collateral-free loans are provided under CGTMSE.

Q: Can I apply offline?
No, the application must be submitted online via the official portal.

References & Important Links

• Official Website: https://msmeonline.tn.gov.in
• Scheme Details & Guidelines
• Entrepreneur Development Institute (EDI), Tamil Nadu