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:
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Visit the Official Website of the Tamil Nadu MSME Department
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Click on “Apply Online” and then “New Application”
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Register with personal details – Name, DOB, Email, Aadhaar, Mobile Number
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Log in and fill out all mandatory fields
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Upload the required documents and submit the application
Post-Submission Process:
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The application is reviewed by the District Industries Centre (DIC)
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Placed before the District Task Force Committee (DTFC)
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Shortlisted applicants are interviewed by bank officials for provisional loan sanction
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Selected applicants undergo a 2-day Entrepreneur Development Programme (EDP) conducted by EDI
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On completion, the promoter’s contribution is deposited, and the loan is disbursed in phases
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Government subsidy is processed and held in TDR for 3 years, then credited to the loan account
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The scheme’s progress is reviewed by the District Collector and the State Level Bankers Committee (SLBC)
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
