Unemployed Youth Employment Generation Programme (UYEGP): Eligibility, Benefits and How to Apply

The Unemployed Youth Employment Generation Programme (UYEGP) is a government scheme introduced by the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu, to address unemployment among socially and economically weaker sections of society, particularly educated and unemployed youth. The scheme aims to encourage young people to become self-employed by starting their own Manufacturing, Service or Business enterprises.

Under the UYEGP scheme, eligible applicants can obtain loans of up to ₹15 lakh for Manufacturing projects and up to ₹5 lakh for Trading or Service projects. The State Government provides subsidy assistance of up to 25% of the project cost, subject to a maximum limit of ₹2.50 lakh. The primary objective of the scheme is to support marginalized and unemployed youth in establishing their own enterprises and becoming entrepreneurs.

Benefits of UYEGP Scheme

The major benefit of the UYEGP scheme is the subsidy assistance provided by the Government of Tamil Nadu to eligible applicants for setting up Manufacturing, Service and Business enterprises.

Eligible applicants can receive subsidy assistance of up to 25% of the project cost, with the maximum subsidy limited to ₹2.50 lakh.

The maximum permissible project cost is ₹15 lakh for Manufacturing enterprises and ₹5 lakh for Trading or Service enterprises.

Who Can Apply for the UYEGP Scheme?

The applicant must be a permanent resident of Tamil Nadu and should have attained at least 18 years of age.

For applicants belonging to the General category, the maximum age limit is 35 years. For applicants belonging to Special categories, including SC, ST, MBC, BC, Minorities, Ex-Servicemen, Differently Abled and Transgender persons, the maximum age limit is 45 years.

The applicant should have passed at least 8th Standard. The annual family income should not exceed ₹5 lakh.

The applicant is required to contribute 10% of the project cost for the General category and 5% for the Special category.

Applicants must also undergo the Entrepreneurship Development Programme (EDP) training, which is mandatory under the scheme.

The proposed project should not exceed ₹15 lakh for Manufacturing projects and ₹5 lakh for Trading or Service projects.

How to Apply for the UYEGP Scheme?

Applications for the UYEGP scheme can be submitted through the official online application process of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu.

Step 1: Visit the official UYEGP website of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu.

Step 2: On the home page, select “Apply Online” and then click on “New Application”.

Step 3: Click on “Register” and provide the required details, including your name, date of birth, email ID, Aadhaar number and mobile number.

Step 4: After completing the registration, log in to the application portal using the required login details.

Step 5: Fill in all the mandatory information in the online application form carefully.

Step 6: Upload all the required documents along with the application form.

Step 7: Review the information and uploaded documents to ensure that all details are correct.

Step 8: Submit the completed application form online and keep the application or acknowledgement details safely for future reference.

What Happens After Applying?

Once the online application is submitted, the District Industries Centre (DIC) verifies the applicant`s eligibility and the details provided in the application.

If the applicant meets the required eligibility conditions, a call letter will be issued for attending the interview. The applicant must participate in the interview as required.

Following the interview, the eligible loan application is recommended to the concerned bank. The bank will then consider the application and take the necessary steps for sanctioning the loan.

After this stage, the applicant will receive a call letter to attend the mandatory Entrepreneurship Development Programme (EDP) training. The applicant must complete the training and obtain the EDP completion certificate.

The EDP completion certificate, along with other documents required by the bank, must be submitted to the bank. After completing the necessary procedures, the bank will disburse the sanctioned loan amount.

The bank will then submit the subsidy claim to the District Industries Centre. The eligible subsidy amount will be disbursed by the DIC and deposited under a Term Deposit Receipt (TDR) for three years.

After completion of the three-year period, the subsidy amount will be adjusted against the loan amount, subject to the applicable scheme rules.

Documents Required for UYEGP Scheme

Applicants should keep all the required documents ready before submitting the application. The documents generally include Identity Proof, such as an Election ID Card or Aadhaar Card, PAN Card, Passport-size Photograph, Income Certificate, Educational Qualification Proof, Proof of Age, Caste or Communinity Certificate and Ration Card.

Educational qualification proof may include a Transfer Certificate or Record Sheet issued by the School or College. Two copies may be required.

Applicants who do not have a valid Ration Card may provide a Nativity Certificate issued by the Tahsildar, Aadhaar Card copy or Election Voter Identity Card copy, as applicable.

A Project Report and valid quotations containing GST numbers are also required as part of the application process.

Applicants belonging to eligible special categories should provide the relevant certificate, such as a valid certificate for Ex-Servicemen, Differently Abled or Transgender applicants.

The applicant should also provide bank account details.

An affidavit may also be required during the loan sanctioning process. The affidavit should be prepared on a ₹20 non-judicial stamp paper, duly certified and signed by a Notary Public. A copy of the Rental or Lease Agreement should also be submitted to the bank along with the affidavit when required.

Important Information for Applicants

Applicants should carefully check the information entered in the online application and ensure that all required documents are uploaded correctly. The Project Report and quotations should also meet the requirements prescribed under the scheme.

Applicants should also complete the mandatory EDP training and submit the required completion certificate to the bank.

The application, loan sanction and subsidy process involves verification by the District Industries Centre and the concerned bank. Therefore, applicants should follow the instructions provided by the respective authorities throughout the process.

Disclaimer

The information provided in this article is for general informational purposes only. Eligibility criteria, project cost limits, subsidy assistance, required documents, application procedures and other UYEGP scheme guidelines may be revised by the Government of Tamil Nadu from time to time. Applicants are advised to verify the latest information with the concerned government department or official portal before applying.