What Is Tamil Nadu Unemployed Youth Employment Generation Programme 2025?

Pragya Pathak

Author

Updated: 16-04-2025 at 12:52 PM

India is the most populous country in the world and with the number of people, the number of needs and wants rise as well. Even though the central and state governments are working on several measures to improve the lives of people, there are still some components that need the government’s attention and one of those is employment. The major problem that the youth of the nation is facing is limited employment opportunities. To tackle this, the state government of Tamil Nadu launched the Unemployed Youth Employment Generation Programme (UYEGP). The govt program is specially designed for the state’s youth so that they can lead financial worry-free lives.

Read the article to learn about the details of the Sarkari scheme ranging from its meaning and objectives to eligibility and application process.

Overview

Name of the scheme	UYEGP
Full form	Unemployed Youth Employment Generation Programme
Introduced by	State government of Tamil Nadu
Objective	To provide affordable loans to the youth so that they can start their businesses
Target Group	Youths residing in the state
Duration of repayment	5 years
Application mode	Online

What Is The Unemployed Youth Employment Generation Programme?

The Unemployed Youth Employment Generation Programme (UYEGP) was launched by the state government of Tamil Nadu under the Micro, Small, and Medium Enterprises (MSME) department, especially for the state’s youth. The Sarkari Yojana aims to encourage unemployed youth to start their businesses with the help of the loan provided under the govt program.

The state govt under the scheme provides a 25% subsidy of the total cost of the project. This makes it easier for the registered youth to start their small businesses without the worry of falling into the well of debt.

Features

The employment generation programme comprises various features aimed at making the lives of youth financially strong. Some of the key features it offers are mentioned below in brief:

The govt program provides an opportunity to avail affordable loans to youth.
The Sarkari Yojana provides a subsidy of 25% of the total project cost (maximum project cost worth Rs. 15 lakh) which makes repayment of the loan easier on the shoulders of the beneficiaries of the scheme.
The rate of interest on the loans given under UYEGP is determined according to the repo rate fixed by the Reserve Bank of India.

Benefits

UYEGP offers several benefits to the youth that allow them to build their personal and professional lives. Some of its key benefits are:

The govt program doesn’t only encourage youth to work on their innovative ideas but also provides them with the needed financial help.
Under the scheme, a 7-day training under the Entrepreneur Development Programme is also given to the youth for skill development.
UYEGP offers loans through public and private sector banks and Tamil Nadu Industrial Cooperative Banks.
Interested applicants aren’t required to deposit any collateral if the loan amount is up to Rs. 10 lakh.

Major Details About UYEGP

The govt program covers the youth residing in both, rural and urban areas of the state. It covers all business sectors ranging from the manufacturing sector to the service sector except activities related to direct agriculture like crop cultivation. Some of the other major details that one should know about are:

The cost of the maximum project is based on the type of business sector. All are mentioned below:

Manufacturing sector: up to Rs. 10 lakh
Service sector: up to Rs. 3 lakh
Business sector: up to Rs. 1 lakh

If the applicant is from the General category, they are required to contribute 10% of the total project cost. However, if the applicant is from the reserved categories like SC, ST, OBC, minorities, women, ex-servicemen, differently-abled individuals, or transgender then they are required to contribute 5% of the total project cost.
The lock-in period for the govt subsidy is set at 3 years.

Financial Assistance Under UYEGP

The financial assistance provided under the employment generation programme is listed below in a tabular form:

Category of the applicant	Contribution to be made (in %)	Bank loan	Subsidy provided by the state govt
General	10%	90%	25%
Reserved category	5%	95%	25%

Eligibility Criteria Of Unemployed Youth Employment Generation Programme

Interested individuals first need to ensure whether they fit into the eligibility criteria of the employment generation programme or not. The eligibility criteria are as follows:

Individuals must be from the state of Tamil Nadu or at least must be residing in the state for a minimum of 3 years.
If the applicant is from the General category then their age should be between 18-35 years. However, if the applicant is from reserved categories (SC, ST, OBC, minorities, women, ex-servicemen, differently-abled individuals, or transgender) then their age should be between 18-45 years.
Applicant’s annual family income should not be more than Rs. 5 lakh.

Application Process Of Unemployed Youth Employment Generation Programme

Interested and eligible applicants can apply for the Sarkari Yojana through online methods at their convenience. The procedure is laid down below:

Step 1: Please visit the official website of the MSME department of the state. Step 2: Please registrater using your Aadhaar number and mobile number. Step 3: Click on ‘Apply Online’ and then ‘New Application’.

Step 4: Fill in your basic details like name, date of birth, address, etc. and complete registration.

Step 5: Fill in the additional information if required and upload the required support documents.

Step 6: Recheck your application and click on ‘submit’.

Post Application

After the successful submission of the application form, the application will be checked by the District Industries Centre (DIC) and if the verification finds no problem, the applicant is then called up for an interview. Post clearing the interview, the loan is approved, and the applicant is invited to complete the 7-day training under EDP. After all this, the applicant needs to visit the bank, submit the proof of documents, and access their loan.

Required Documents Of Unemployed Youth Employment Generation Programme

Applicants are required to submit some supporting documents while applying for the state govt scheme. The list of the documents is as follows:

Aadhaar card
PAN card
Income certificate
Birth certificate
Ration card (if needed)
Bank account details
Project report
Valid quotations with GST number

An affidavit typed on ₹20/- Non-Judicial Stamp Paper, certified and signed by a Notary Public, to be submitted along with a copy of the Rental/Lease Agreement to the bank when sanctioning the loan

How To Track Application Status?

Applicants can track the status of their applications by following a very simple procedure. The steps to do the same are:

Step 1: Please visit the official website of the MSME department of the state.

Step 2: Click on the tracking option and view the status of your application.

Conclusion

The Unemployed Youth Employment Generation Programme (UYEGP) by the state govt of Tamil Nadu is one of the most exceptional govt programs as it not only puts forward a career option for the youth but also helps them achieve the same by providing financial assistance in the form of loans.

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