Silpi Pension Scheme - Assam 2026

Tamil Nadu's UYEGP scheme offers loans and subsidy to unemployed youth to help them start their own Read More... manufacturing, service, or business enterprises and become self-employed. Read less

Details

Are you a young person in Tamil Nadu looking to start your own business? The Unemployed Youth Employment Generation Programme (UYEGP) might be just what you need. Introduced by the Micro, Small and Medium Enterprises Department of the Tamil Nadu Government, this scheme is designed to tackle unemployment, especially among the educated and weaker sections of society.

What Is This Scheme?

UYEGP aims to turn unemployed youth into successful entrepreneurs. It provides financial assistance in the form of loans and subsidies to help you set up manufacturing, service, or business ventures. This is a great opportunity to kickstart your career and contribute to the economy.

Who Can Benefit From This Scheme?

This program is specifically for the young individuals of Tamil Nadu who are seeking employment opportunities. If you're unemployed, educated, and belong to a socially and economically weaker section of society, you could be eligible.

Why This Scheme Is Important

The primary goal of UYEGP is to create self-employment opportunities. By supporting young entrepreneurs, the scheme not only helps individuals earn a livelihood but also contributes to the growth of small and medium-scale industries in the state. It empowers you to become your own boss and build a sustainable future.

Objective

Tamil Nadu's UYEGP scheme offers loans and subsidy to unemployed youth to help them start their own manufacturing, service, or business enterprises and become self-employed.

Benefits

Under the Artist Pension Scheme, the beneficiary will receive an amount of ₹8,000/- (per month).

Under the Family Pension Scheme, the beneficiary will receive an amount of ₹4,000/- (per month).

Under the Barxik Silpi Sanman (Ex-Gratia Grant), the beneficiary will receive an amount of ₹50,000/- (One time).

Under the One-time special financial assistance to families of deceased Artist Scheme, the beneficiary will receive an amount of ₹50,000/- (One time).

Sources and references

Guideline

Eligibility Criteria

You must be a permanent resident of Tamil Nadu.
Your age should be at least 18 years.
The maximum age limit is 35 years for the General category.
For special categories (SC/ST/MBC/BC/Minorities/Ex-Servicemen/Differently-abled/Transgender), the maximum age limit is 45 years.
You should have completed at least 8th standard education.
Your family income should not exceed ₹5 Lakhs per annum.
You need to contribute 10% of the project cost if you are from the General category, or 5% if you belong to a special category.
Mandatory training in Entrepreneurship Development Programme (EDP) is required.
The project cost should not be more than ₹15 Lakhs for manufacturing projects, and ₹5 Lakhs for Trading/Service projects.

How To Apply

The District Industries Centres (DICs) in your district, or the Office of the Regional Joint Director of Industries and Commerce for Chennai District, are the implementing agencies at the district level.
You will need to prepare a project report for your proposed venture. Model project profiles and templates are available online to help you.
Beneficiaries are selected through an interview process conducted by the District Task Force Committee.
For detailed application procedures and submission, please refer to the official website or contact your local District Industries Centre.

Documents Required

Identity proof (e.g., Election ID Card, Aadhaar Card)
PAN Card copy
Passport size photograph
Income Certificate
Educational Qualification proof (e.g., Transfer Certificate, Mark Sheet - 2 copies)
Proof of Age
Caste/Community Certificate
Ration Card (or Nativity Certificate from Tahsildar / Aadhaar Xerox / Election Voter ID Xerox if you don't have a Ration Card)
Project Report
Valid Quotations with GST number
Valid certificate if applicable (for Ex-Servicemen/Differently-abled/Transgender)
Bank account details
Affidavit (typed on a ₹20/- Non-Judicial Stamp Paper, certified and signed by a Notary Public)

FAQ’s

Who is eligible for the Unemployed Youth Employment Generation Programme (UYEGP)?

To be eligible, you must be at least 18 years old. The upper age limit is 35 for the General category and 45 for special categories (SC/ST/MBC/BC/Minorities/Ex-Servicemen/Differently-abled/Transgender). You need to have passed at least the 8th standard, be a resident of Tamil Nadu for at least 3 years, and your family's annual income (including your spouse's) should not exceed ₹5,00,000.

Can I get a loan for a business that's already running under UYEGP?

No, the UYEGP scheme is strictly for new units. Existing businesses cannot avail loans under this program.

What is the maximum project cost allowed for different types of businesses?

For manufacturing businesses, the project cost can be up to ₹15 lakhs. For service and business ventures, the maximum project cost is ₹5 lakhs each.

Is the Entrepreneurship Development Programme (EDP) training mandatory?

Yes, attending the Entrepreneurship Development Programme (EDP) training is a compulsory requirement for all applicants.

What kind of activities are covered by the UYEGP scheme?

The scheme is open to all economically viable manufacturing, service, and business activities in both rural and urban areas of Tamil Nadu. However, it does not cover direct agricultural operations like crop cultivation.

How much personal investment is needed from the applicant?

Applicants from the General Category need to contribute 10% of the project cost. Those belonging to special categories (Scheduled Caste, Scheduled Tribe, Backward Classes, Most Backward Classes, Minorities, Women, Ex-servicemen, Physically Challenged, Transgender) need to contribute 5% of the project cost.

How are the beneficiaries chosen for this scheme?

Beneficiaries are selected through an interview conducted by the District Task Force Committee. This committee is headed by the General Manager of the District Industries Centre or the Regional Joint Director in Chennai.

Are existing units eligible to apply for UYEGP loans?

No, the scheme is exclusively for setting up new units. Existing businesses are not eligible for UYEGP funding.

What is the repayment period for loans under the UYEGP scheme?

The repayment tenure for the loans will be 5 years, or as determined by the bank in line with RBI guidelines.

Which banks can I approach for a loan under this scheme?

Loans under the UYEGP scheme can be availed from all Nationalized Banks, Private Sector Banks, and the Tamil Nadu Industrial Co-operative Bank.

Is collateral security required for UYEGP loans?

According to RBI guidelines, project costs up to ₹10 lakhs under UYEGP loans do not require collateral security. The project can also be covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

What is the 'own contribution' requirement for UYEGP?

The 'own contribution' or promoter's contribution is 10% of the project cost for the General Category and 5% for special categories (SC/ST/BC/MBC/Minorities/Women/Ex-servicemen/Physically Challenged/Transgender).

How much loan amount will the bank provide towards the project cost?

The bank loan will cover 90-95% of the project cost, which includes the Government subsidy of 25%. Banks will disburse 90-95% of the project cost as a loan and then claim the subsidy.

What is the interest rate charged on UYEGP loans?

The interest rate charged under the UYEGP scheme will be as per the guidelines provided by the Reserve Bank of India (RBI).

Can I get a UYEGP loan if I've already received benefits from other government schemes?

No, you are not eligible to apply for a loan under UYEGP if you have already availed loan or subsidy benefits from any other State or Central Government scheme.

What is the lock-in period for the government subsidy?

The government subsidy provided under the scheme has a lock-in period of 3 years.

Can a partnership firm apply for a loan under UYEGP?

No, only individuals are eligible to apply for a loan under the UYEGP scheme. Partnership concerns are not eligible.

Is it possible to finance a project jointly from two different financial sources?

No, a project financed jointly from two different sources (banks or financial institutions) is not eligible for this scheme.

What support is available for preparing the project report?

You can find model project profiles and project templates on the official website. These resources are designed to guide entrepreneurs in preparing their project reports effectively.

Who are the members of the District Task Force Committee?

The District Task Force Committee typically includes the Chairman (General Manager, District Industries Centre/Regional Joint Director, Chennai), Lead Bank District Manager, representatives from TAHDCO, District Coordinators from Leading Banks, representatives from MSME Associations, NSIC/MSME-DI, District Employment Officer, and representatives from DRDA and Magalir Thittam.