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.
This 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.
In this blog, we'll walk you through:
- What is the UYEGP Scheme?
- Eligibility criteria for applicants
- Focus sectors supported by the scheme
- Benefits and financial support
- Required documents for the application
- Step-by-step guide on how to apply
What is the UYEGP Scheme?
The UYEGP Scheme is a government initiative aimed at promoting self-employment and entrepreneurship among youth in Tamil Nadu. The scheme offers financial support in the form of capital subsidies, loans, and entrepreneurship training.
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.
This initiative is part of the Tamil Nadu Micro, Small, and Medium Enterprises (MSME) Policy and is designed to give youth the financial backing they need to start new ventures and contribute to the economic development of the state.
Key Features of the UYEGP Scheme:
- ✓Financial assistance: for startups in manufacturing, service, and trading sectors.
- ✓Capital subsidy: of up to 25% of the project cost, max ₹3.75 lakh.
- ✓Repayment period: of 5 years, with an initial 6-month moratorium.
- ✓Focus on empowerment: of backward and marginalized communities such as SC/ST, women, differently-abled, transgender individuals.
Eligibility Criteria for the UYEGP Scheme
To apply for the UYEGP Scheme, applicants need to meet specific eligibility criteria. The key requirements are as follows:
Eligibility Criteria
| Criteria | Details |
|---|---|
| Educational Qualification | Must have passed at least the 8th standard. |
| Annual Household Income | Should not exceed ₹5 Lakhs per year. |
| Age Limit | - Minimum age: 18 years - Maximum age: 45 years for general category - Maximum age: 55 years for SC/ST, BC, MBC, Minorities, Women, Ex-Servicemen, Differently-abled, and Transgender categories. |
| Domicile | Must be a resident of Tamil Nadu for at least 3 years. |
| Training Requirement | Entrepreneurship Development Programme (EDP) training is mandatory if selected. |
Do you meet the eligibility criteria for the UYEGP Scheme? Apply now to get the financial support and business mentorship you need!
Focus Sectors under the UYEGP Scheme
The UYEGP Scheme is designed to support various types of businesses and ventures, excluding large agricultural projects. Here are the focus sectors:
Manufacturing
Manufacturing businesses, such as production units for electronics, textiles, and handicrafts.
Service Enterprises
Service-based businesses like beauty salons, repair services, educational training centers, and more.
Trading
Retail businesses, wholesale distribution, and e-commerce platforms.
Exclusions
Large agricultural projects (e.g., crop cultivation, large-scale farming) are not eligible for this scheme.
Ready to start your business in manufacturing or service industries? Apply for the UYEGP Scheme to get the financial backing and resources to scale your startup!
Benefits of the UYEGP Scheme
The UYEGP Scheme offers a wide array of financial and non-financial benefits for eligible entrepreneurs:
Capital Subsidy
25% subsidy on the total project cost (maximum of ₹3.75 Lakhs).
Loan Assistance
Loan up to ₹15 Lakhs for new businesses in manufacturing, service, and trading.
Repayment Terms
5-year repayment period with an initial 6-month moratorium.
Promoter's Contribution
10% contribution from General Category and 5% contribution from Special Categories.
Training & Mentorship
EDP Training, business development support, and mentorship to help businesses thrive.
Bank Support
Loan assistance from nationalized banks, private sector banks, and Tamil Nadu Industrial Co-operative Bank.
Looking for financial support to scale your startup? Apply for the UYEGP Scheme today and take advantage of subsidies, loans, and mentorship!
Documents Required for the UYEGP Scheme Application
To apply for the UYEGP Scheme, you must submit the following documents:
Aadhaar Card
Proof of identity for the applicant.
Ration Card
Proof of residence (or nativity certificate if the Ration card is unavailable).
Educational Certificates
Transfer certificate or school record sheet copy.
Community Certificate
SC/ST, BC, or MBC certificate (if applicable).
Project Report
Detailed business plan or project report covering the total cost, objectives, and milestones.
Bank Passbook
Bank account details for funding disbursement.
Photographs
Passport-sized photographs of the applicant.
Have all your documents ready? Apply for the UYEGP Scheme now and get the funding and resources to grow your business!
How to Apply for the UYEGP Scheme
Applying for the UYEGP Scheme is a straightforward process. Here's how to apply:
Prepare Your Documents
Submit Application
Application Evaluation
Interview & Shortlisting
Grant & Loan Disbursement
Are you ready to apply for the UYEGP Scheme? Submit your application and take the first step toward self-employment and business growth!
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. Have passed at least 8th grade.
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.
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.
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.
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 are not eligible.
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.
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.
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 schemes cannot apply for this scheme.
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.
Conclusion: Why Apply for the UYEGP Scheme?
The UYEGP Scheme offers an incredible opportunity for unemployed youth in Tamil Nadu to become self-employed and create sustainable businesses.
With financial assistance, capital subsidies, and training support, this program empowers entrepreneurs to build a strong foundation for their business ventures. Whether you're in manufacturing, service, or trading, the scheme can help you overcome financial barriers and pave the way for your success.