§1Who it is for

  • Educated unemployed youth from weaker sections starting a trading/business unit

Useful if

Young shop / trading founders in TN

Do not spend time on it if

Manufacturing or service units (go to PMEGP)

§2Eligibility

  1. Age 18-45 general; up to 55 for special category (Women/Minorities/BC/MBC/SC/ST/Ex-servicemen/Transgenders/Differently abled)
  2. Minimum 8th pass
  3. Family income below Rs.8.00 lakh
  4. Only trading/business projects, max project cost Rs.15.00 lakh

§3Benefits

  • Individual-based capital subsidy 25% of project cost, maximum Rs.3.75 lakh

§4Norms — pattern of assistance

  1. 25% of project cost, max Rs.3.75 lakh
  2. Promoter contribution 10% general, 5% special category
  3. Loan from commercial banks

§5Documents

Tick each one as you get it ready.

Project report (original and duplicate)

Community certificate (two copies)

§6How to apply

  1. 1

    Apply online at msmeonline.tn.gov.in/uyegp; loan from commercial banks

  2. 2

    For manufacturing/service use PMEGP (kviconline.gov.in) as the portal advises

§7Pros and cons

Merits

  • Low entry bar (8th pass) and covers trading, which most subsidy schemes exclude

Demerits

  • Small cap (Rs.3.75 lakh)
  • Average 109 days to approve subsidy (dashboard)

→Related schemes

Need help with UYEGP?

Eligibility check, DPR and application file — ask us on WhatsApp.

WhatsApp usServices

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. UYEGP - scheme page, msmeonline.tn.gov.in
  2. UYEGP dashboard FY 2026-27, msmeonline.tn.gov.in
  3. UYEGP enclosures list (PDF), msmeonline.tn.gov.in
  4. Tamil Nadu MSME Policy 2021 (MSME Department, GoTN) - copy hosted by TANSIDCO

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.