Unemployed Youth Employment Generation Programme (UYEGP)
By Micro Small and Medium Enterprises Department, Government of Tamil Nadu
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Quick Answer
A Tamil Nadu government scheme providing loans up to ₹15 lakhs for manufacturing and ₹5 lakhs for service/business enterprises, along with up to ₹2.50 lakhs subsidy, to educated unemployed youth for self-employment.
- Funding amount
- Up to ₹1.5Cr
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Tamil Nadu
About this loan
The Unemployed Youth Employment Generation Programme (UYEGP), initiated by the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu, is a significant state-level initiative designed to address the challenges of unemployment among the educated youth within Tamil Nadu. This scheme primarily targets individuals from socially and economically weaker sections, aiming to transform them into self-reliant entrepreneurs. By providing crucial financial support, UYEGP facilitates the establishment of new Manufacturing, Service, or Business enterprises, fostering a culture of entrepreneurship across the state. The program offers accessible loan facilities combined with substantial subsidy assistance, making it easier for aspiring business owners to overcome initial capital barriers. Through UYEGP, the state government seeks to not only mitigate unemployment but also stimulate economic growth by nurturing a robust ecosystem of small and micro-enterprises.
Eligibility
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Grant providers
Provider
Micro Small and Medium Enterprises Department, Government of Tamil NaduChennai · Tamil Nadu · India
Tamil Nadu's Micro, Small and Medium Enterprises Department runs state subsidy, loan and incentive schemes for micro, small and medium enterprises and for people who want to start one. The department's pages do not always agree on the details, so confirm the terms of any scheme…
Learn moreBenefits & Funding
- Amount
- Up to ₹1.5Cr
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
The UYEGP scheme offers a comprehensive financial support package to eligible young entrepreneurs in Tamil Nadu. This includes access to loans up to ₹15 lakhs for individuals establishing manufacturing units, and up to ₹5 lakhs for those venturing into service or business enterprises. A key feature of the program is the subsidy assistance from the State Government, amounting to 25% of the total project cost, with a maximum cap of ₹2.50 lakhs. This subsidy is initially held in a Term Deposit Receipt (TDR) for three years before being adjusted against the outstanding loan amount, significantly reducing the repayment burden. Beyond direct financial aid, the program mandates and provides Entrepreneurship Development Programme (EDP) training, equipping beneficiaries with essential business management skills, market insights, and operational know-how to ensure the sustainable growth of their ventures. This holistic approach ensures that entrepreneurs receive both the capital and the capabilities required to succeed.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Upon online submission, the District Industries Centre (DIC) will verify the eligibility of the application based on the submitted details and documents. Shortlisted applicants will receive an official call letter inviting them to an interview round, which is a crucial step in the evaluation process. Following the interview, eligible loan applications will be recommended to partner banks for further sanctioning and processing of the loan. Selected applicants will then receive a call letter to attend the mandatory Entrepreneurship Development Programme (EDP) training. After successfully completing the EDP training and receiving the completion certificate, applicants must submit this certificate along with any other bank-required documents to their respective banks.
Application Process
- 1
Apply Online
Applicants must register and submit their detailed application form and necessary documents through the official website.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the Unemployed Youth Employment Generation Programme (UYEGP)?
The UYEGP is a flagship scheme by the Government of Tamil Nadu's MSME Department. It aims to empower educated and unemployed youth, especially from socially and economically weaker sections, by providing financial assistance (loans and subsidies) to help them establish their own manufacturing, service, or business enterprises, thereby fostering self-employment and entrepreneurship.
Who is eligible to apply for the UYEGP scheme?
Applicants must be permanent residents of Tamil Nadu, aged between 18 and 35 (General category) or 18 and 45 (Special categories including SC/ST/MBC/BC/Minorities/Ex-Servicemen/Differently abled/Transgender). They should have passed the 8th standard and their family income must not exceed ₹5 lakhs per annum. A mandatory entrepreneurship development training is also required.
What are the maximum project costs and loan amounts available under UYEGP?
The maximum project cost supported for manufacturing enterprises is ₹15 lakhs, while for trading or service projects, it is ₹5 lakhs. The loan amounts are provided up to these project cost limits, subject to the applicant's contribution (10% for General category, 5% for Special category).
How much subsidy assistance can an applicant receive, and how is it disbursed?
The scheme provides a subsidy of up to 25% of the project cost, with a maximum limit of ₹2.50 lakhs. This subsidy is initially deposited as a Term Deposit Receipt (TDR) for a period of three years. After this three-year period, the subsidy amount is adjusted directly against the outstanding loan amount, reducing the principal burden on the entrepreneur.
Is any training provided or required as part of the UYEGP scheme?
Yes, mandatory Entrepreneurship Development Programme (EDP) training is a crucial component of the UYEGP scheme. Applicants are required to attend and complete this training after their loan application has been recommended, ensuring they gain essential skills for successful business operation.
What is the application process for the UYEGP scheme?
The application process is entirely online via the official MSME Department website. After online submission, applications are verified by the District Industries Centre (DIC). Shortlisted candidates attend an interview, after which their applications are recommended to banks for loan sanction. Post-EDP training, the loan is disbursed by banks, and the subsidy claim is processed.
Sources
Data on this page is compiled from official program and provider references.
