UYEGP scheme details: eligibility, benefits, application filling, and documents

Seeing the need to assist business owners, particularly in Tamil Nadu's rural

and urban areas, the state government launched the Unemployed Youth

Employment Generation Programme (UYEGP). This initiative strives to bridge the gap between young entrepreneurs' goals and the resources they need to transform their business ideas into reality.

What is the UYEGP Scheme: Overview

The Micro, Small, and Medium Enterprises Department of the Tamil Nadu government launched the Unemployed Youth Employment Generation Programme (UYEGP). The program's goal is to lower unemployment, particularly for educated young people from economically and socially disadvantaged backgrounds. It provides young people without jobs with financial assistance to launch their enterprises. With a government subsidy covering 25% of the project cost, the initiative offers loans of up to₹15 lakhs for manufacturing,₹5 lakhs for services, and ₹5 lakhs for business operations.

The objective of the UYEGP scheme is to reduce unemployment, particularly for socially and economically disadvantaged groups. The scheme assists people in launching their own companies so they can work for themselves in the retail, manufacturing, or service industries. The program demonstrates the government's dedication to enhancing the quality of life for economically disadvantaged neighborhoods and minority groups throughout the state.

Eligibility for the UYEGP Scheme:

The candidate must have lived in Tamil Nadu continuously for at least three years.
Age Limit:
1. General category: 18 to 35 years of age.
2. Special categories (SC/ST/MBC/BC/minorities/ex-servicemen/differently abled/transgender):18 to 45 years of age.The applicant must have successfully passed the 8th standard.
The applicant's family income must not exceed ₹ five lakhs per annum.
Completing the Entrepreneurship Development Programme (EDP) training is required.
The applicant must not have received any loan or subsidy from the state or central government under similar schemes.

Activities covered under the UYEGP scheme:

The UYEGP program covers both rural and urban areas and is applicable to all regions of Tamil Nadu. Its design supports all commercially feasible manufacturing, service, and business operations—with the exception of direct agricultural operations like crop cultivation.

Project Cost:

The maximum project cost under the UYEGP varies based on the sector:

Manufacturing Sector: Up to ₹10.00 lakhs
Service Sector: Up to ₹3.00 lakhs
Business Sector: Up to ₹1.00 lakh

Note: Under UYEGP, loans are only available to newly established business units.

Promoter's Contribution

For the General Category, 10% of the project cost must be contributed by the promoter.
The promoter's contribution is 5% of the project cost for particular categories, including Scheduled Tribes, Scheduled Castes, Backward Classes, Most Backward Classes, Minorities, Women, Ex-Servicemen, Physically Challenged Individuals, and Transgender Persons.

Government Subsidy

The government provides a 25% subsidy of the project cost, with a maximum subsidy limit of ₹1,25,000.

Bank Loan

The bank finances 90-95% of the project cost, which includes the government subsidy of 25%. The bank will release the loan and subsequently claim the subsidy.

Collateral Security

No collateral is required for UYEGP loans up to ₹10 lakhs, as per RBI rules.

Rate of Interest

The interest rate is as per the guidelines issued by the Reserve Bank of India.

Repayment Tenure

The repayment tenure is up to five years, or as determined by the bank based on RBI guidelines.

Lock-in Period for Government Subsidy

There is a lock-in period of three years for the government subsidy under UYEGP.

Prescribed Authority

The District Task Force Committee interviews and selects potential beneficiaries, led by the Regional Joint Director in Chennai or the General Manager of the District Industries Center.

Benefits of the UYEGP scheme:

The UYEGP scheme provides a range of benefits to help economically and socially disadvantaged populations deal with unemployment issues.
It offers a sponsorship contribution of 5% for programs in particular categories and 10% for regular programs.
Individuals can also apply for a 25% capital subsidy on project costs. The maximum subsidy limits are₹1.5 lakh for general projects,₹50,000 for specific projects, and₹2.5 lakh for projects related to construction, commerce, and services.
This scheme's interest rates adhere to RBI norms, guaranteeing equitable terms for district-level recipients.
In addition to receiving loans from Tamil Nadu Industrial Cooperative Bank, nationalized banks, and private banks, participants in the seven-day Entrepreneur Development Programme (EDP) program receive training.
Due to the credit guarantee trust managing financial institution security standards, the loan repayment plan is convenient and doesn't require collateral or security.
To help recipients in their attempts, the District Industries Centre (DIC) hosts frequent buyer-seller meetings and offers marketing support.

Process for UYEGP online application:

Candidates must apply for loans under the UYEGP program online through the Micro, Small, and Medium Enterprises Department of the Tamil Nadu government's official website.
On the home page, click on "Apply Online" and then "New Application.".
After selecting "Register," provide your name, date of birth, email address, Aadhaar number, and mobile number.
Once your registration has been approved, click "login" and complete all the required fields.
After uploading all required files, submit the application.

Post-Application Process:

The eligibility of the District Industries Center's (DIC) online application was verified.
In exchange for showing up and participating in the interview, the applicant will receive a call letter.
Recommendation of a loan application to the bank and approval of the loan that the bank will grant.
Get the invitation letter to participate in the Entrepreneurship Development Programme (EDP) course.
Following receipt of the EDP completion certificate, the applicant must deliver it to the bank along with any further documentation that the bank requests.
Bank loan distribution and bank subsidy claim submission to the DIC.
The subsidy amount will be disbursed by DIC following a three-year TDR period. Following the three-year period, the loan amount will be modified to account for the new subsidy.

Documents Required for the UYEGP Scheme:

Proof of Identity: Copy of Election ID Card, Aadhaar Card, etc.
Copy of PAN Card
Passport-size photograph
Income Certificate
Educational Qualification Proof: Transfer Certificate or Record Sheet issued by School/College (Two Copies)
Proof of Age
Caste/Community Certificate
Ration Card (for applicants without a valid Ration Card, a Nativity Certificate from the Tahsildar, or a copy of the Aadhaar Card/Election Voter's ID)
Project Report
Valid Quotations with GST Number
Certificate for Ex-Servicemen/DDifferently Abled/TTransgender (if applicable)
Bank Account Details
Affidavit: Typed on ₹20/- Non-Judicial Stamp Paper, certified and signed by a Notary Public, to be submitted along with a copy of the Rental/Lease Agreement to the bank when sanctioning the loan.

UYEGP online application Verification and Tracking:

The official website of the Micro, Small, and Medium Enterprises Department official webpage. Allows the applicant to check the status of their UYEGP application.
After selecting Track Your Status, enter your registered phone number or application number.
The application's status can be seen by selecting the submit button.

Note: The Primary Agriculture Cooperative Credit Society (PACCS), municipal offices, Taluk offices, and e-service centers are additional locations where the entrepreneur may submit an application.

Financial Assistance in the UYEGP Scheme:

Financial aid offered under this scheme includes a capital expenditure loan, one cycle of working capital, 10% of the project cost as a contribution for general category loans, and 5% of the project cost for particular category loans.

The cost of the project cannot include the price of the land and buildings.

The promoter contributes 10% of the project cost for the general category, and a bank loan, with a 25% subsidy, funds the remaining 90%.

Applicants who fall into any of the following categories: women, ex-servicemen, physically challenged people, transgender people, SC/ST/BC/MBC (minorities) applicants; the promoter's contribution is lowered to 5%, and the bank loan covers 95% of the project cost. These groups are also eligible for a 25% subsidy.

Conclusion

The Tamil Nadu government's UYEGP project, which aims to promote entrepreneurship and lower unemployment, is a great effort. The program is a lifeline for young entrepreneurs who have the idea but lack the resources to turn it into a reality because it provides training and financial aid. UYEGP might hold the key to enabling young, aspirational entrepreneurs in Tamil Nadu to realize their full commercial potential.