A new scheme will provide a subsidy of up to 25% of the scheme cost to the beneficiaries. The UYEGP Scheme It is a scheme of MSME department only for citizens of Tamil Naidu. Tamil Nadu UYEGP Scheme Efforts to reduce unemployment among the economically and socially disadvantaged. It was created to enable educated unemployed people to become self-employed in their local areas to reduce migration from rural to urban areas due to unemployment. These teenagers are given financial assistance to start manufacturing, service and business establishments. In today’s post, we will discuss the motivation of introduction Job Guarantee Scheme for Unemployed Youth. Also, its features and benefits, as well as the application process.
UYEGP Scheme 2023
It was launched by the Department of Micro, Small and Medium Enterprises, Government of Tamil Nadu Scheme to create employment for unemployed youth (UYEGP). Apart from overcoming many other business hurdles, an entrepreneur needs to get immediate financing to start a new firm. Whatever the reasons, there are or may be situations where banks do not help them the first time. To solve this problem Tamil Nadu government has implemented a credit program for small enterprises. UYEGP Scheme It is a program designed to inspire unemployed youth to create their own companies and promote youth entrepreneurship.
The state government has taken up the concerns to help, but to achieve their goal, they have also reduced certain restrictions like age, educational qualification and family income to be met before applying under the scheme. The program lends only up to 90-95% of the project cost, with a 25% subsidy to eligible beneficiaries. The good news is that no assets or guarantees are required from the applicant. Loans through commercial banks will be supported. In total, the promoters contribution should not exceed 10% of the scheme provided and the rest of the parties involved in the scheme will help the newbies to start a business.
TN Job Creation Program for Unemployed Youth Overview
|Name of the scheme||UYEGP Scheme|
|Year of launch||2022|
|Launched by||Tamil Nadu State Govt|
|Beneficiaries||Citizens of the state and have been citizens for the last 3 years.|
|Objectives||Provide loans and subsidies for businesses to low-income citizens.|
|Subsidy||25% of the total project|
UYEGP Scheme 2023 Objectives
The primary objective of this UYEGP scheme is to reduce unemployment among the socially and economically backward sections of the population, especially the uneducated and unemployed, and to enable them to become self-employed by setting up service, manufacturing and business enterprises. Loan and Subsidy from State Govt. Serving all the poor sections of the state means that the government is trying to make a better life for the citizens of the minority sections.
UYEGP Scheme 2023 Benefits and Features
- Sponsorship share for alleviating unemployment hardships of economically and socially backward sections 10% for general category and 5% for special category schemes.
- Manufacturing, Commercial and Service Projects: Individual based capital subsidy @ 25% of the project cost with a maximum project cost of Rs. 15,00,000 and Rs. 50,000 and Rs. 500,000 Individual-based capital subsidy @ 25% of project cost (maximum Rs. 2.50 lakh)
- The interest rate provided under the UYEGP plan is as per RBI guidelines for district level selection of beneficiaries to enable greater participation from each district.
- Courses in Entrepreneur Development Program (EDP) of seven days for beneficiaries of the scheme.
- Use various financial organizations for loans including nationalized banks, private banks and Tamil Nadu Industrial Cooperative Bank.
- Marketing assistance from the District Industrial Center (DIC) also organizes buyer-seller meetings at regular intervals.
- The program prioritizes district-level beneficiary selection to ensure equitable distribution of benefits across all districts.
- All recipients are required to attend a seven-day Entrepreneur Development Program training course.
- Wide network of banks and financial institutions to provide instant access to money including nationalized banks, private banks and Tamil Nadu Industrial Cooperative Bank.
- CGTMSE provides loans up to Rs. 10 lakhs without requiring collateral or surety from the borrower.
- The General Manager of the concerned District Industrial Center will schedule regular buyer-seller meetings to provide marketing assistance.
UYEGP Scheme 2023 Eligibility
The qualifying points are as follows:
- Entrepreneur should have 8th standard education.
- Any adult (18+) can apply for UYEGP. The age limit is 35 years for special categories and 45 years for general categories.
- The annual income of the couple should not exceed Rs. 1,50,000.
- Entrepreneur must have 3 years residency.
- Training is required for UYEGP loan.
- Recipient should not have received State/Central Government loan or subsidy for applying for UYEGP.
- Applicants must have passed 8th standard.
- Resident of Tamil Naidu for last 3 years.
- Applicants have not taken any kind of loan before.
Scheme to create employment for unemployed youth documents
Documents for UYEGP Scheme are listed below:
- ID proof
- A quote for required resources included in the project.
- Educational qualification certificate.
- Project report
- Residential proof
- Caste Certificate (if applicable)
- Disabled (if applicable)
- Passport size photographs
- mobile number
UYEGP Scheme 2023 Application Process
To apply for the scheme follow the application procedure as shown:
- Select UYEGP option from MSME home page.
- The link will take you to another page.
- On this new page, click on the link “Apply Online” Then click “New Application” The application form of the Unemployed Youth Employment Generation Program will be shown.
- The applicant should provide basic information about the entrepreneur, including his or her email address and educational background. Enter them correctly.
- Then upload the scanned photos in the exact size required by the website.
- You need to provide information about the activity document, category of the initiative, address where the activities will start, and the project cost.
- After you fill the information, you can see the list of documents to be uploaded.
- Click on the button that says “Continue” to proceed with the application. When you submit your application, you will receive an application ID.
- Under “Apply Online” in the Department of Micro, Small and Medium Enterprises, select “Upload Documents”.
- Enter Application ID and click “Submit” button. You can send all files.
- Click “Submit” and your form is submitted. Now the authorities will verify and inform further.
- If accepted, you will receive a call for an interview. If the applicant performs well in the interview, the bank is informed to approve the loan.
- The bank will approve the loan. A person who wants to go for EDP training will get a letter asking them to come.
- You need to send the certificate of EDP training. The affidavit should be typed on non-judicial stamp paper of Rs 20 and signed by a notary public. An affidavit must be submitted to the bank along with a copy of the rental agreement or lease agreement while sanctioning the loan.
- Then you will get an EDP letter for training and you have to attend those training sessions. After that, you will also receive a training certificate.
- Then submit the certification to the bank and the loan will be disbursed.