Unemployed Youth Employment Generation Programme (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

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