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 reduce employment by facilitating financing solutions to promote self-employment. This would also help prevent mass migration from rural to other areas to look for better income and tackle problems arising from unemployment.
Read on to know more about UYEGP, its benefits, objectives, UYEGP scheme details, and more.
The UYEGP scheme aims to tackle the problem of unemployment in the young population of the economically and socially weaker sections. The state government provides a subsidy over loans to unemployed youth to help them set up a self-employed enterprise.
The subsidy provided by the state government generally amounts to 25% of the project cost of starting a manufacturing, services, or business enterprise.
The UYEGP interest rate depends on the repo rate set by the RBI. So, it may change depending on the RBI’s monetary policy decisions.
The financial assistance provided under the UYEGP scheme includes a capital expenditure loan. The following is the breakup of the loan provided under the UYEGP scheme:
Category |
Project |
Subsidy |
|
Promoter’s Contribution |
Bank Loan | ||
General Category |
10% |
90% |
25% |
Special Category |
5% |
95% |
25% |
In order to avail of this facility, you need to fulfil the UYEGP scheme eligibility requirements listed below:
You should have cleared the 8th standard
You should be unemployed
You should not have availed of a loan or subsidy from other Govt. schemes (State or Central)
The annual income of the family should be under ₹5 Lakhs
Your age should be between 18-35, 45 if you are from special categories
You should be residing in Tamil Nadu
The project cost should be in accordance with the guideline, between ₹15 Lakhs to ₹5 Lakhs, depending on the project type
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
Nativity certificate issued by 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
How to Apply for UYEGP Scheme
If you are eligible to apply for the UYEGP scheme, you can apply for it by following the steps mentioned below:
-
Visit the UYEGP portal
-
Click on the ‘Apply Now’ button
-
Verify your eligibility by DIC
-
Attend the interview upon receiving the call letter
-
Get a recommendation and sanction by the bank
-
Complete a 7-day EDP training after receiving the call letter
-
Receive the EDP training competition certificate
-
Submit the EDP certificate along with other relevant documentation to the bank
-
The bank will disburse the loan after verifying the submitted documents
-
The bank will file a claim for a subsidy with DIC
-
The bank will deposit the subsidy under TDR for three years
-
The subsidy will adjust with your loan amount after the lock-in period
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FAQs About the UYEGP Scheme
Self-employed manufacturing, services and business enterprises are covered under the UYEGP Scheme.
Public sector, commercial banks, and industrial cooperative banks of the state are covered under this scheme.
The repayment tenure of the scheme is five years.
Yes, EDP training is compulsory to avail of the aid under UGYEP.
No, the financial aid from the scheme is only available to new Micro, Small, and Medium Enterprises.
Yes, the government subsidy has a lock-in period of 3 years which gets adjusted to your loan amount.
The promoter contribution is 5% and 10% for the Special and General Categories, respectively.
The loan amount that you can get under the UYEGP scheme ranges from ₹15 Lakhs to ₹5 Lakhs.
No, if the project cost is under ₹10 Lakhs, you do not need any collateral as per the RBI guidelines.
