Unemployed Youth Employment Generation Programme

Description
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
• 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 Criteria
1. The applicant should be a permanent resident of Tamil Nadu.
2. The applicant should be a minimum of 18 years of age; and
3. (a) **for the General category:** maximum of 35 years of age.
4. (b) **for Special category (SC/ ST/MBC/ BC/ Minorities/ Ex-Servicemen/ Differently abled/ Transgender):** maximum of 45 years of age.
5. The applicant should have passed the 8th standard.
6. The family income of the applicant should not exceed ₹5 lakhs per annum.
7. The applicant's contribution should be 10% of the project cost for the General category; or 5% for the Special category.
8. Entrepreneurship Development Programme (EDP) training is mandatory.
9. Project cost should not be more than ₹15 lakhs for manufacturing, and ₹5 lakhs for Trading / Service projects.

Application Process
Step 1: Application Processes:
Procedure for Online Filling of Application Dos and Don’ts
Online

Application Processes:
Procedure for Online Filling of Application Dos and Don’ts

Required Documents
• Identity proof i.e. copy of Election ID Card/ Aadhaar card etc.
• Copy of PAN Card
• Passport size photo
• Income Certificate
• Educational Qualification proof- Transfer certificate/ Record Sheet issued by School/College.(Two Copies)
• Proof of age
• Caste/Community Certificate
• 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)
• Project Report
• Valid Quotations with GST number
• Valid certificate for Ex-Serviceman /Differently abled /Transgender
• Bank account details
• 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.

Frequently Asked Questions
Q: What are the eligibility norms to get benefitted under this scheme?
A: Any individual, above 18 years of age. The upper age limit for General Category is 35 years and for special category 45 years. The minimum educational qualification is passed in VIII Standard. The applicant should be a resident of the place for not less than 3 years. The family income of the beneficiary along with the spouse should not exceed [?]5,00,000/- per annum.

Q: What is the component of Project cost?
A: Capital expenditure loan, one cycle of working capital, and 10% of the project cost as own contribution in case of a general category and 5% of the project cost in case of a special category loan.

Q: Whether cost of land and building included in project cost?
A: No

Q: Whether Entrepreneurship Development Programme (EDP) training is compulsory?
A: Yes

Q: Whether Collateral security is mandatory?
A: As per RBI guidelines, the Project Costs of up to [?]10 lakhs under UYEGP loans are free from Collateral Security. The Project can very well be covered under CGTMSE also.

Q: Whether existing unit can avail loan under UYEGP?
A: No. Only new unit

Q: Which is the agency implementing the scheme at District Level?
A: District Industries Centres (DICs) of the concerned Districts and the Office of the Regional Joint Director of Industries and Commerce in respect of Chennai District will be the implementing agencies for the Scheme.

Q: What are all the activities / area covered under this scheme?
A: The scheme is applicable to all areas in the State including Rural and Urban Areas. All economically viable Manufacturing, Service, and Business Activities excluding direct Agricultural
operations like raising of crops etc.,

Q: Which banks are covered under this scheme?
A: All Nationalized Banks, Private Sector Banks, and Tamil Nadu Industrial Co-operative Bank

Q: What is the maximum project cost under each category?
A: [?]15 lakhs for Manufacturing Sector, [?]5 lakhs for Service Sector, [?]5 lakhs for Business Sector

Q: What should be the promoter’s contribution?
A: 10% on the Project Cost for General Category as Promoter's contribution and 5% on the Project Cost for Special Categories (viz. Scheduled Caste / Scheduled Tribe / Backward Classes / Most Backward Classes / Minorities / Women / Ex-servicemen / Physically Challenged / Transgender) as owners' contribution

Q: How much contribution will have to be made from the bank towards project cost?
A: The amount of the Bank Loan is 90-95% loan of the project cost. (Including Government Subsidy of 25%). Bank should release 90-95% of the project cost as a loan and then claim a subsidy.

Q: What is the rate of interest charged under UYEGP scheme?
A: The rate of interest is as per the guidance of RBI.

Q: What is the repayment tenure under the scheme?
A: Repayment tenure will be 5 years or as fixed by the bank in accordance with the guidance of RBI.

Q: What is the lock in period for Govt subsidy?
A: 3 years

Q: Can the project be financed jointly from two different sources( Bank/ Financial Institutions)?
A: No. It is not eligible.

Q: Whether the applicant can avail loan under UYEGP scheme when he had already availed benefit under other Govt Schemes?
A: In order to apply for the loan under UYEGP, the beneficiary should not have availed loan/ subsidy under any other State/ Central Govt scheme.

Q: Whether partnership concern eligible to avail loan?
A: No, an Individual alone is eligible.

Q: What is the help line available for the beneficiary in preparation of the project?
A: Model project profile and Project template are available to guide the entrepreneur in preparation of the Project Report on this website.

Q: How are the beneficiaries selected under this scheme?
A: Beneficiaries will be selected through the interview process by the District Task Force Committee headed by the General Manager of the concerned District Industries Centre/Regional Joint
Director, Chennai.

Q: Who are all the members of Task Force Committee?
A: Task force Committee:
Chairman: General Manager, District Industries Centre/Regional Joint Director, Chennai-32
Members :
1. Lead bank District Manager,
2. Tamil Nadu Adi Dravidar Housing and Development Corporation Limited (TAHDCO)
3. District Coordinators from Leading Banks in the Districts
4. Representative from District Micro, Small and Medium Enterprises Associations
5. Representative from National Small Industries Corporation Ltd / Micro, Small and Medium Enterprises Development Institute
6. District Employment Officer
7. Representative of Project Officer, District Rural Development Agency
8. Representative of Project Officer, Magalir Thittam.