UYEGP Loan – How to Apply?

UYEGP LOAN

The Micro, Small and Medium Enterprises Department, Government of Tamil Nadu introduced the scheme “Unemployed Youth Employment Generation Programme (UYEGP Loan)” which aims to mitigate the unemployment problems of socially and economically weaker section of the society, particularly among the educated and unemployed to become self employed in their native places itself and to prevent the mass migration from rural areas to urban areas due to unemployment by setting up Manufacturing / Service / Business enterprises by availing loan up to the maximum of Rs.10 Lakhs, Rs. 3 Lakhs and Rs. 1 Lakh respectively with subsidy assistance from the State Government up to 25% of the project cost (Maximum to a limit of Rs.1.25 Lakhs)

Quick Links:

1. Eligibility

   1. Required Documents

   2. Benefits

   3. Step by Step Procedure

   4. Loan Process

   5. Frequently Asked Questions (FAQ)

Eligibility to Apply for UYEGP Loan:

1. Any individual, above 18 years of age. Upper age limit for General category is 35 years and for Special category 45 years.

   1. Minimum educational qualification is a pass in VIII standard.

   2. The applicant shall be resident of the place for not less than 3 years.

   3. The family income of the beneficiary shall not exceed Rs.1,50,000/- per annum.

Document Required to Apply for UYEGP Loan:

• Filled Application Form through Online Mode

  • Quotation for Purchase

    • Educational qualification certificate

    • Project report (Contact your Nearby Auditor to Get this)

    • Residential proof

    • Differently-abled Certificate (If applicable)

    • Caste certificate (If applicable)

Benefits:

• Entrepreneur Development Programme (EDP) training to the beneficiaries of the scheme conducted by the Government

• Avail the loan from a wide range of financial institutions – nationalized banks, private banks and Tamil Nadu Industrial Cooperative Bank

• Convenient repayment plan for the loan provided by the bank

• No collateral or security required from the applicant. The credit guarantee trust will ensure the requisite security norms for the banks or financial institutions

• Marketing support by the (DIC) District Industries Centre. DIC also arranges buyer-seller meet at regular intervals

• The applicant can avail the scheme with the project cost of Rs. 10 lakh in the manufacturing sector, Rs. 3 lakh in the service sector and Rs. 1 lakh in the business sector

Step by Step Procedure:

1. Visit the Official UYEGP Loan Website

2. Click the New application under Apply Online Tab

3. Enter your personal Details, Address details and upload the passport size photo

4. Enter Aadhaar details, Qualification details, Annual Income, Mobile number and Email id for Communication purpose

5. Your project details and complete project profile along with Unit Address

6. Enter the Total Investment Details of your project which was printed on your Quotation and click proceed

7. Then upload the above mentioned documents in pdf format with maximum size of 200 kb and click submit

Then Download the Application which was downloaded and submit the application to near by District Industries Center.

UYEGP Loan Process Steps:

FAQ Most frequent questions and answers

• What is the component of Project cost?

• Whether cost of land and building included in project cost?

• Whether EDP training is compulsory?

• Whether Collateral security is mandatory?

• Which is the agency implementing the scheme at District Level?

• What are all the activities / area covered under this scheme?

Have Question? We have the answers Most frequent questions and answers

• Which banks are covered under this scheme?

• What is the maximum project cost under each category?

• How much contribution will have to be made from the bank towards project cost?

• What is the rate of interest charged under UYEGP scheme?.

• What is the repayment tenure under the scheme?

• Whether partnership concern eligible to avail loan