UYEGP Scheme Details, How to Apply, Eligibility, Benefits and Documents

Q: What are the eligibility norms to get benefitted under the UYEGP Scheme?

To be eligible for the UYEGP Scheme, applicants must: Be between 18 and 45 years (up to 55 years for special categories). Have an annual household income of ₹5 Lakhs or less. Be a resident of Tamil Nadu for at least 3 years. Have passed at least 8th grade.

UYEGP Scheme

Unemployed Youth Employment Generation Programme

What is the UYEGP Scheme?

The UYEGP Scheme (Unemployed Youth Employment Generation Programme) is a flagship initiative by the Tamil Nadu Government to tackle unemployment and promote self-employment among socially and economically backward youth.

By offering financial assistance and support for setting up manufacturing, service, and business enterprises, this scheme empowers unemployed individuals to create their own livelihood.

Did you know? The UYEGP Scheme is specifically designed to aid educated youth from the backward sections of society, particularly those who have the drive to establish their own ventures but lack the financial resources.

Through subsidized loans, capital subsidies, and training programs, the UYEGP Scheme helps these individuals build sustainable businesses. This scheme is part of the Tamil Nadu Micro, Small, and Medium Enterprises (MSME) Policy.

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Financial Assistance

Capital subsidy of up to 25% (max ₹3.75 lakhs) on project cost

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Loan Support

Loans up to ₹15 lakhs for new business ventures

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No Collateral

Collateral-free loans to encourage entrepreneurship

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EDP Training

Mandatory entrepreneurship development program

✅ The goal is to enable unemployed youth to set up manufacturing units, service businesses, or trade enterprises, thus creating job opportunities for themselves and others in their community.

Eligibility Criteria for UYEGP Scheme

To apply for the UYEGP Scheme, applicants need to meet specific eligibility criteria. The scheme is designed for unemployed youth who want to start their own business.

Eligibility Requirements

Criteria	Details
Educational Qualification	Must have passed at least the 8th standard
Annual Household Income	Should not exceed ₹5 Lakhs per year
Age Limit	18-45 years (General) Up to 55 years (SC/ST, BC, MBC, Women, etc.)
Domicile	Must be a resident of Tamil Nadu for at least 3 years
Training Requirement	EDP training mandatory if selected

Special Category Benefits

The scheme provides relaxed eligibility norms for special categories:

Scheduled Castes (SC) and Scheduled Tribes (ST)
Backward Classes (BC) and Most Backward Classes (MBC)
Minorities, Women, and Transgender individuals
Ex-Servicemen and Differently-abled persons

Focus Sectors Supported by UYEGP Scheme

The UYEGP Scheme supports various types of businesses and ventures across manufacturing, service, and trading sectors. The scheme excludes large agricultural projects like crop cultivation.

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Manufacturing

Production units for electronics, textiles, handicrafts, and other manufactured goods.

Up to ₹10L

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Service Enterprises

Beauty salons, repair services, educational centers, and other service-based businesses.

Up to ₹3L

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Trading Businesses

Retail stores, wholesale distribution, and e-commerce platforms.

Up to ₹1L

Exclusions

Large agricultural projects (e.g., crop cultivation, large-scale farming) are not eligible for this scheme.

Benefits of the UYEGP Scheme

The UYEGP Scheme offers a comprehensive array of financial and non-financial benefits for eligible entrepreneurs to start and sustain their businesses.

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Capital Subsidy

Up to ₹3.75L subsidy

25% subsidy on total project cost, maximum ₹3.75 lakhs to reduce financial burden.

🏦

Loan Assistance

Up to ₹15L loan

Flexible loans up to ₹15 lakhs for manufacturing, service, and trading businesses.

🔓

No Collateral

100% collateral-free

Collateral-free loans to encourage entrepreneurs with limited assets to start businesses.

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EDP Training

Free training provided

Mandatory entrepreneurship development training to build business skills and knowledge.

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5-Year Repayment

5 years + 6 months grace

Extended repayment period of 5 years with initial 6-month moratorium for easy management.

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Special Category Support

Relaxed eligibility norms

Additional benefits for SC/ST, women, differently-abled, and other marginalized communities.

Bank Support

Loan assistance from nationalized banks, private sector banks, and Tamil Nadu Industrial Co-operative Bank with competitive interest rates.

Mentorship Program

Access to experienced business mentors and industry experts to guide your entrepreneurial journey.

Documents Required for UYEGP Scheme Application

To apply for the UYEGP Scheme, you must submit a comprehensive set of documents to prove your eligibility and business plan.

Required Documentation

Aadhaar Card*

Proof of identity for the applicant

PAN Card*

Permanent Account Number for tax purposes

Ration Card*

Proof of residence (or nativity certificate)

Educational Certificates*

Transfer certificate or school records

Community Certificate

SC/ST, BC, MBC certificate (if applicable)

Project Report*

Detailed business plan with cost breakdown

Bank Passbook*

Bank account details for fund disbursement

Passport Photographs*

Recent passport-size photographs

Note: All documents must be self-attested. Additional documents may be required based on your business type and location.

How to Apply for the UYEGP Scheme

Applying for the UYEGP Scheme is a straightforward process that involves document preparation, submission, and verification. Here's the complete step-by-step guide.

Document Preparation

1-2 days

Gather all required documents including Aadhaar, PAN, educational certificates, and project report.

Application Submission

1 day

Submit application through District Industries Centre (DIC) or online portal with required documents.

Document Verification

7-15 days

Government authorities verify eligibility criteria and document authenticity.

EDP Training

2-4 weeks

Complete mandatory Entrepreneurship Development Programme training.

Project Evaluation

15-30 days

Business plan and project report evaluation by expert committee.

Loan Sanction

30-45 days

Bank loan approval and subsidy allocation once project is approved.

Fund Disbursement

7-15 days

Funds transferred to beneficiary's account for business setup and operations.

The entire application process from submission to fund disbursement typically takes 2-3 months, depending on document verification and training completion.

2-3

Months Process

Steps to Complete

Free

Application Process

Success Stories: UYEGP Beneficiaries

Real entrepreneurs who have successfully transformed their lives through the UYEGP Scheme, creating jobs and building sustainable businesses.

Priya S.

Handicraft Manufacturing • Coimbatore

★★★★★

Loan: ₹8 Lakhs | Created 15 jobs, annual turnover ₹45 Lakhs

"From being unemployed to running a successful handicraft export business, Priya received ₹8 lakhs loan and built a team of 15 artisans."

15 Jobs Created₹45L TurnoverExport Business

Rajesh K.

Service Center • Chennai

★★★★★

Loan: ₹3 Lakhs | Expanded to 3 locations, 25 employees

"Rajesh started a mobile repair service center and scaled it to 3 locations with 25 employees using UYEGP funding."

3 Locations25 Employees₹12L Revenue

Meena R.

Beauty Salon Chain • Madurai

★★★★★

Loan: ₹5 Lakhs | 5 salons, 50+ clients daily

"As a single mother, Meena used UYEGP loan to start her beauty business and now runs 5 successful salons."

5 Salons50+ Daily Clients₹25L Annual Sales

Arun P.

Textile Trading • Tirupur

★★★★★

Loan: ₹2 Lakhs | Wholesale distributor with ₹30 lakhs monthly turnover

"Arun leveraged UYEGP scheme to establish his textile wholesale business, now distributing to 200+ retailers."

200+ Retailers₹30L Monthly SalesZero Debt

These are just a few examples of how UYEGP Scheme has transformed lives and created sustainable businesses across Tamil Nadu.

Ready to Start Your UYEGP Journey?

Join thousands of successful entrepreneurs who have transformed their lives through the UYEGP Scheme. Get the financial support and guidance you need to start your own business.

🎯 Your Success is Our Priority

Free Eligibility Check

Document Assistance

Application Support

Call: 1800 571 0607

💡 Start today: Your entrepreneurial journey begins with a single application. Join the thousands who have already transformed their future through UYEGP Scheme.

Frequently Asked Questions (FAQs) – UYEGP Scheme

What are the eligibility norms to get benefitted under the UYEGP Scheme?

To be eligible for the UYEGP Scheme, applicants must be between 18 and 45 years (up to 55 years for special categories), have an annual household income of ₹5 Lakhs or less, be a resident of Tamil Nadu for at least 3 years, and have passed at least 8th grade. EDP training is mandatory for selected applicants.

What is the component of the project cost under UYEGP?

The total project cost includes capital expenditure for the business setup (e.g., equipment, raw materials), excluding land and building costs. The scheme provides 25% capital subsidy (maximum ₹3.75 lakhs) and loans up to ₹15 lakhs depending on the sector.

Is Entrepreneurship Development Programme (EDP) training compulsory?

Yes, EDP training is compulsory for all selected applicants to equip them with necessary business skills and knowledge before they can receive the loan and subsidy.

Is collateral security mandatory for the UYEGP Scheme?

No, collateral security is not required for the UYEGP Scheme. It is collateral-free to encourage entrepreneurs with limited assets to start their own businesses.

Can an existing unit apply for a loan under the UYEGP Scheme?

No, only new units are eligible for loans under the UYEGP Scheme. Existing units that have already been operational are not eligible for this scheme.

What is the rate of interest charged under the UYEGP Scheme?

The rate of interest is determined by the bank or financial institution providing the loan, but it is generally competitive and subsidized for scheme applicants.

What is the repayment tenure under the UYEGP Scheme?

The repayment period is 5 years, with an initial 6-month moratorium on payments to allow the business to stabilize before starting loan repayments.

Can I finance the project from two different sources (Bank/Financial Institutions)?

Yes, it is possible to finance the project from multiple sources, but you need to comply with the scheme's conditions and inform the implementing agency about all funding sources.

Can I apply for the scheme if I've already availed benefits from other government schemes?

No, applicants who have already availed benefits under other government schemes cannot apply for this scheme to ensure equitable distribution of resources.

Are partnership concerns eligible to avail loans under the UYEGP Scheme?

Yes, partnership firms are eligible to apply for loans under the UYEGP Scheme if they meet the eligibility criteria and all partners satisfy the individual requirements.