Unemployed Youth Employment Generation Programme

The UYEGP scheme is run by the Department of Micro, Small & Medium Enterprises (MSME), Tamil Nadu under the Government of Tamil Nadu. The purpose of the scheme is to reduce unemployment among educated unemployed youth of the state, especially from socially and economically weaker sections, by supporting them to start their own manufacturing, service or business enterprises in their native places. The benefit to you: you can move from being unemployed to self-employed, access formal credit plus subsidy, and build a sustainable enterprise locally.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Support for setting up manufacturing, service or business units: The scheme allows unemployed youth to use the assistance to initiate a unit in manufacturing, or service, or trading/business so you are not limited to one sector.
Subsidy of 25% of project cost: Under UYEGP, the government offers a capital subsidy equivalent to 25% of the approved project cost (subject to ceiling) which lowers your effective cost of borrowing.
Lower promoter contribution for special category: The scheme has reduced promoter contribution (your own share) if you belong to reserved categories (SC/ST/BC/MBC/Minorities/Women/Ex-servicemen/Transgender/Differently-abled) thus improving access.
No collateral security for eligible units: In many cases under the scheme the loan (under the assisted project) does not require collateral security, if it is within certain limits and meets conditions.
Age, education, and income criteria applied: The scheme sets minimum education (8th standard pass), minimum age (18 years), maximum age limits (depending on category), and family income ceilings to ensure targeted beneficiaries.
Online application through portal: You can apply for the scheme via the MSME Tamil Nadu official portal (UYEGP section) making access easier.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Project Cost Limits	Up to ₹15 lakh for manufacturing, ₹5 lakh for service/trading (approx)	Example: You propose a manufacturing unit costing ₹12 lakh → qualifies under manufacturing cap.
Subsidy	25% of project cost	Example: On ₹12 lakh project cost → subsidy = ₹3 lakh, thus you need to finance remaining ₹9 lakh via loan + your contribution.
Promoter Contribution	10% for general category, 5% for special category	Example: If you are general category and project cost ₹10 lakh → your contribution = ₹1 lakh (10%).
Loan from Bank	Remaining project cost minus subsidy minus promoter contribution	Example: For ₹10 lakh project: subsidy ₹2.5 lakh, your contribution ₹1 lakh → bank loan ₹6.5 lakh.
Other Financial Terms	Working capital may be part of project cost; No collateral within certain limits	Example: If your project includes initial working capital of ₹2 lakh, this may be included in project cost under scheme rules.

Eligibility Criteria

Who can apply:

Applicants must be a permanent resident of Tamil Nadu (or resident for a specified period).
Minimum educational qualification: passed 8th standard at least. govtschemes.in
Age limit: General category 18–35 years; for special categories (women, SC/ST, minorities, ex-servicemen, differently-abled, transgender) up to 45 years.
Annual family income should be within a ceiling (e.g., ≤ ₹5 lakh) to qualify.
Applicants should take up a new enterprise (manufacturing/service/trading) and be first‐generation entrepreneurs.

Who Cannot Apply:

Applicants who are already operating similar business (not first generation) unless scheme allows it.
Applicants above the age limit (35/45 as applicable).
Applicants whose family annual income exceeds the ceiling.
Non‐residents of Tamil Nadu or those not meeting state residency requirement.
Applicants not willing or able to fulfil the promoter’s contribution (10% general / 5% special) to project cost.

Documents Required

Aadhaar card (identity proof)
Permanent residence proof (ration card, voter ID, Aadhaar)
Educational qualification certificate (minimum 8th pass)
Age proof (birth certificate, Aadhaar)
Family income certificate / annual income proof
Community certificate (if special category)
Project report/feasibility study including cost estimate, quotation(s)
Bank account passbook/details for disbursement

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.

Option 2: Official Government Process

Visit the official MSME Tamil Nadu portal and locate the UYEGP scheme page.
Register as a new user (if required) and fill in the application form with personal, educational, project and bank details.
Prepare and upload required documents (proof of residence, age, education, project report, etc).
Submit the application and wait for district‐level evaluation/selection.
Once approved, approach participating bank/financial institution under the scheme for loan sanction & subsidy release. Monitor implementation and comply with scheme terms.

Option 3: Offline Assistance via District Industries Centre

Visit your local District Industries Centre (DIC) or MSME office for guidance. Some districts provide offline help or assist with document verification.
After guidance, you may proceed with online application or as guided by the office.

Power Combos with The Scheme