Known famously as the “Detroit of India” for its extremely feasible opportunities and benefits for start-ups and MSMEs, Tamil Nadu is fast emerging as the most preferred hub for young and enthusiastic entrepreneurs and professionals keen to explore new business avenues. The New Entrepreneur cum Enterprise Development Scheme (NEEDS) was promoted by the Directorate of Industries and Commerce, Government of Tamil Nadu in 2013 to encourage entrepreneurship amongst economically weaker sections of the society by providing capital and interest subsidy.
The objective of this scheme
- To provide entrepreneurship training to educated youth
- Support entrepreneurs in getting financial assistance with 25% subsidy and 3% interest
Eligibility criteria of NEEDS scheme
|1||Age||o 21 to 35 years for General category Entrepreneurs
o 21 to 45 years for Special Category Entrepreneurs (Women / SC / ST / OBC / MBC / Minorities / Ex-Servicemen / Transgenders / Physically Challenged)
|2||Academic Qualification||Must hold a Degree, Diploma, Vocational Training from a recognized Institution.|
|3||Place of Residence||Should be a resident of Tamil Nadu at least for 3 years.|
|4||Income limit||No income limit is necessary for setting up projects under this scheme|
|5||Business Entity||Entrepreneurs starting their business as a proprietorship or partnership are eligible for the subsidy.|
|6||Other Conditions||o Assistance is available only for new projects sanctioned specifically under the NEEDS.
o Entrepreneurs who have already availed assistance under any of this scheme- PMRY, REGP, (PMEGP), UYEGP), (TAHDCO) or any other central or state government scheme will not be eligible.
o Any applicant/entrepreneur who has availed loan for economic activity under Self Help Group/other group activity will also be not eligible.
o The applicant should not be a defaulter to any Commercial Bank / TIIC.
For more information on eligibility criteria visit here
- Project Cost-
- The minimum Project Cost is above Rs. 5 Lakh and the maximum is Rs. 1 Crore.
- Subsidy will be restricted to Rs. 25 lakh for projects costing more than Rs.1 Crore
- Project cost will include capital expenditure and margin money for working Capital.
- Projects without capital expenditure are not eligible.
- Self-financed projects will not be eligible.
- 25% of the Project Cost can get ceiling of Rs.25 lakh.
- Following expenses will not be considered for subsidy :
- Cost of rented/leased building
- Technical knowledge
- preliminary expenses
- working capital margin
How to avail:
During the financial year 2013-14, fourteen youth were given a subsidy of Rs. 1.18-crore along with bank loans under NEEDS in Krishnagiri.
Click here to apply for this scheme.