Unemployed Youth Employment Generation Programme

The Micro, Small and Medium Enterprises Department, Government of Tamil Nadu introduced the scheme "Unemployed Youth Employment Generation Programme (UYEGP)" which aims to mitigate the unemployment problems of socially and economically weaker sections of society, particularly among the educated and unemployed youth of the state. The youth of the state will become self-employed by setting up Manufacturing/ Service / Business enterprises by availing loans up to the maximum of ₹15 Lakhs, ₹5 Lakhs, and ₹5 Lakhs respectively with subsidy assistance from the State Government up to 25% of the project cost (Maximum to a limit of ₹2.50 Lakhs). The objective of the programme is to assist marginalized youths to become entrepreneurs.

Benefits

1. Under the scheme, subsidy assistance will be provided by the State Government up to 25% of the project cost (Maximum to a limit of ₹2.50 Lakhs) for setting up Manufacturing/ Service / Business enterprises.

Eligibility

1. The applicant should be a permanent resident of Tamil Nadu.

2. The applicant should be a minimum of 18 years of age; and

(a) for the General category: maximum of 35 years of age.

(b) for Special category (SC/ ST/MBC/ BC/ Minorities/ Ex-Servicemen/ Differently abled/ Transgender): maximum of 45 years of age.

3. The applicant should have passed the 8th standard.

4. The family income of the applicant should not exceed ₹5 lakhs per annum.

5. The applicant's contribution should be 10% of the project cost for the General category; or 5% for the Special category.

6. Entrepreneurship Development Programme (EDP) training is mandatory.

7. Project cost should not be more than ₹15 lakhs for manufacturing, and ₹5 lakhs for Trading / Service projects.

Application Process

Online

Application Processes:

Step 01: The applicant willing to avail loan under the UYEGP scheme should fill up the online application through the Official Website of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu.

Step 02: On the home page, click on “Apply Online” and then “New Application”.

Step 03: Click on ‘Register’ and fill in the details like Name, Date of Birth, Email ID, Aadhaar Number & Mobile Number.

Step 04: After successful registration, click on ‘login’ and fill in all the mandatory details.

Step 05: Upload all the necessary documents and submit the application form.

Post-Application Process:

Step 01: Verification of eligibility of online submitted application by District Industries Centre (DIC).

Step 02: The applicant will receive a call letter for attending the interview and participating in the interview.

Step 03: Recommendation of loan application to bank and sanctions of loan to be accorded by the bank.

Step 04: Receiving the call letter for attending Entrepreneurship Development Programme (EDP) training and attending EDP training.

Step 05: After receiving the EDP completion certificate and the applicant needs to submit it with other documents as required by the bank to the bank.

Step 06: Loan disbursement by banks and filing of subsidy claim by the bank with DIC.

Step 07: The subsidy amount will be disbursed by DIC and deposit subsidy amount under TDR for 3 years. After the completion of 3 years, the subsidy will be adjusted in the loan amount.

Procedure for Online Filling of Application Dos and Don’ts

Documents Required

1. Identity proof i.e. copy of Election ID Card/ Aadhaar card etc.
2. Copy of PAN Card
3. Passport size photo
4. Income Certificate
5. Educational Qualification proof- Transfer certificate/ Record Sheet issued by School/College.(Two Copies)
6. Proof of age
7. Caste/Community Certificate
8. Ration Card (In case of applicants who don't possess a valid Ration Card, a Nativity certificate from the Thasildhar/ Aadhar card xerox / Election voters identity card Xerox)
9. Project Report
10. Valid Quotations with GST number
11. Valid certificate for Ex-Serviceman /Differently abled /Transgender
12. Bank account details
13. Affidavit - For reference to the candidate which should be typed in a ₹20/- Non-Judicial Stamp Paper duly Certified and Signed by the Notary Public and then submitted along with a copy of the Rental/Lease Agreement to the bank while sanctioning the loan.