Here is everything you need to know about UYEGP
The Unemployed Youth Employment Generation Programme (UYEGP) is a flagship scheme introduced by the Micro, Small and Medium Enterprises Department of the Government of Tamil Nadu.
Through UYEGP, the TN government aims to wipe out the menace of unemployment in the young population of the economically and socially weaker sections. This would also help prevent mass migration from rural to urban areas to look for better income and tackle problems arising from unemployment.
The subsidy provided by the state government generally amounts to 25% of the project cost of starting a manufacturing, services, or business enterprise.
Here are some of the features of the UYEGP scheme:
The scheme assists with loans that you can avail of from commercial banks
The loan amount may range from up to 90% to 95% of the cost of the project
The UYEGP interest rate is determined as per the repo rate fixed by the RBI
The repayment tenure of the UYEGP loan scheme may go up to 5 years
The promoters contribute 10% and 5% of the loan if you belong to the Special and General Category, respectively
The maximum project cost for trading/business projects may go up to ₹15 Lakhs
The lock-in period for the government subsidy is three years
Category |
Project |
Subsidy |
|
Promoter’s Contribution |
Bank Loan |
||
General Category |
10% |
90% |
25% |
Special Category |
5% |
95% |
25% |
In addition to meeting the above eligibility requirements of the UYEGP scheme, you will need to submit the documents to the District Industries Centre (DIC) to enjoy the benefits:
Transfer Certificate (TC) issued by your school/college for education proof
Ration Card for nativity proof (2 copies)
Nativity certificate issued by the Revenue Department, an Aadhaar card, or a Voter ID card, if you do not have a ration card
Quotation and Project Report
Community Certificate
Certificate for ex-servicemen, differently abled, or transgenders
An Affidavit on a ₹20 stamp paper duly signed by a notary officer
A copy of the rental/lease agreement to the bank
Business Loan Articles
FAQs About the UYEGP Scheme
Which activities does the UYEGP scheme cover?
Self-employed manufacturing, services and business enterprises are covered under the UYEGP Scheme.
Which banks are covered in the UYEGP scheme?
Public sector, commercial banks, and industrial cooperative banks of the state are covered under this scheme.
What is the repayment period under the UGYEP scheme?
The repayment tenure of the scheme is five years.
Is it mandatory to complete the EDP Training to avail of UGYEP scheme?
Yes, EDP training is compulsory to avail of the aid under UGYEP.
Is financial aid from UGYEP available for existing MSME Units?
No, the financial aid from the scheme is only available to new Micro, Small, and Medium Enterprises.
Does the government subsidy received from a bank under the UYEGP come with a lock-in period?
Yes, the government subsidy has a lock-in period of 3 years which gets adjusted to your loan amount.
How much does the promoter contribute under the UYEGP scheme?
The promoter contribution is 5% and 10% for the Special and General Categories, respectively.
What is the minimum & maximum loan offered for the UYEGP Scheme?
The loan amount that you can get under the UYEGP scheme ranges from ₹15 Lakhs to ₹5 Lakhs.
Do I need to submit any collateral security under the UYEGP scheme?
No, if the project cost is under ₹10 Lakhs, you do not need any collateral as per the RBI guidelines.
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