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.

The Unemployed Youth Employment Generation Programme (UYEGP) offers several features and benefits designed to empower unemployed youth in Tamil Nadu. Here is a closer look at them:

• The scheme assists with loans that can be availed from commercial banks, with loan amounts covering 90% to 95% of the project cost.

• The UYEGP interest rate is determined based on the repo rate fixed by the RBI.

• The repayment tenure for the loan may go up to 5 years, allowing flexibility for beneficiaries.

• Promoters contribute 10% and 5% of the loan amount for special and general category applicants, respectively.

• The maximum project cost for trading or business projects may be as high as ₹15 Lakhs.

• The government subsidy comes with a three-year lock-in period.

• The scheme ensures equitable distribution of benefits by selecting beneficiaries from the district level.

• The government provides a 7-day training session under the Entrepreneur Development Programme (EDP).

• Loans are provided through financial institutions such as public sector banks, private banks, and Tamil Nadu Industrial Cooperative Banks.

• The repayment tenure is fixed by the bank.

• The District Industries Centre (DIC) arranges buyer-seller meetings for beneficiaries at regular intervals.

In order to avail of this facility, you need to fulfil the UYEGP scheme eligibility requirements listed below:

• You should have cleared 8th standard

• You should be unemployed

• You should not have availed of a loan or subsidy from other government 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 (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

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

• Fill out the application form

• Verify your eligibility by DIC

• Receive call letter for attending interview

• Attend the interview upon receiving the call letter

• Get a recommendation and sanction from the bank

• Complete a 7-day EDP training

• 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

The UYEGP scheme enables unemployed youth to access credit for starting micro‑businesses with favourable features such as high loan cover, flexible tenure, subsidised promoter contribution, and a lock‑in subsidy period. At the same time, it ensures benefits like district‑level selection, training via EDP, buyer‑seller facilitation and multiple banking channels. For larger‑scale enterprises beyond this scheme’s scope, the business loan facility from %$$Brandname$$% offers an alternative with amounts up to ₹80 lakhs, competitive interest from 14% p.a., and swift online approval. This presents a broader finance option for entrepreneurs looking to scale their operations post‑scheme.