To foster entrepreneurial growth and reduce unemployment among the youth, the Union Territory of Puducherry launched the Motivation of Unemployed Persons to Start Self-Employed Enterprises Scheme (MUPSES) in 2006. This scheme aims to provide financial assistance and subsidies to unemployed individuals interested in setting up service or manufacturing enterprises.
Highlights of the MUPSES Loan Scheme
• Scheme Name: Motivation of Unemployed Persons to Start Self-Employed Enterprises Scheme (MUPSES)
• Launched by: Government of Puducherry
• Launch Year: 2006
• Target Group: Unemployed men and women of Puducherry
• Purpose: To promote self-employment through manufacturing/service enterprises
• Loan Assistance: ₹10,000 to ₹2,00,000
• Subsidy Offered: Up to 50% of project cost
• Application Mode: Offline through District Industries Centre
• Official Website: [To be updated based on official link]
Key Benefits of the Scheme
• Financial assistance in the form of loans ranging from ₹10,000 to ₹2,00,000 for self-employment projects.
• Subsidy of 50% of project cost (excluding pre-operative expenses) for projects not exceeding ₹50,000.
• Subsidy of 35% of project cost up to ₹35,000 for projects exceeding ₹50,000 but less than ₹2,00,000.
• Interest charged is as per the normal bank rate applicable at the time of sanction.
• Eligible for all viable service or industrial sector startups.
Eligibility Criteria
• Must be an unemployed male or female resident of the Union Territory of Puducherry.
• Minimum 3 years of permanent residence in Puducherry is mandatory.
• Should possess basic literacy (reading and writing skills). No formal education is required.
• No family income limit.
• Age limit as per existing norms of financial institutions.
Activities Covered
Under MUPSES, various economically viable services and industrial activities are supported, such as:
• Mechanized Laundry
• Beauty Parlour / Saloon
• Tailoring Units
• Hygienic Tea / Coffee Stalls
• Other service and manufacturing units with viable business models
How to Apply – Offline Process
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Contact the Technical Officer at the District Industries Centre (DIC) of your district.
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Download the application form from the official Puducherry Industries Department website.
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Fill in the form carefully and attach the required documents.
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Submit the form in person at the respective DIC office during working hours.
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Screening and Interview: Eligible applicants will be called for an interview (conducted quarterly).
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Forwarding of Application: Successful candidates’ applications are sent to banks for loan processing.
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Loan Disbursement: Banks release funds once all required formalities are completed by the applicant.
Necessary Documents for Application
• Valid Identity Proof (Aadhaar, Voter ID, etc.)
• Proof of Age
• Proof of Residence (Family Ration Card, etc.)
• Two Passport-size Photographs
• Caste Certificate (if applicable)
• Educational Qualification Certificate (if any)
• Experience Certificate (if applicable)
• Brief Business Project Report
Frequently Asked Questions (FAQs)
Q: What is the objective of the scheme?
To promote self-employment among unemployed individuals by providing financial and institutional support.
Q: Which department implements the scheme?
The District Industries Centre (DIC) under the Puducherry Industries Department.
Q: When was this scheme launched?
The scheme was introduced in 2006.
Q: What benefits does the scheme offer?
Subsidized loans of up to ₹2,00,000 with up to 50% subsidy depending on the project cost.
Q: Who can apply under this scheme?
Unemployed men and women who are residents of Puducherry for at least 3 years.
Q: What types of businesses are supported?
Mechanized laundry, tailoring, salons, tea/coffee stalls, and other viable service or manufacturing units.
Q: What is the age requirement?
As per the prevailing norms set by the banking institutions.
Q: Is there any income limit to apply?
No, the scheme is open to all income groups.
Q: Is it only for Puducherry residents?
Yes, only those who are permanent residents for 3 years can apply.
Q: Is an educational qualification necessary?
No formal education required, but the applicant must be literate.
Q: What interest rate is applied?
The normal bank interest rate applicable at the time of loan approval.
Q: What is the project cost range under this scheme?
Projects costing up to ₹2,00,000 are eligible.
Q: Where can I get the application form?
From the official website of the Puducherry Industries Department or directly at the District Industries Centre.
References & Important Links
• Official Website: Click Here
• District Industries Centre – Puducherry (for in-person submission)
• Government Notifications & Scheme Guidelines
