Migrants Employment Generation Programme
At a Glance
Scheme Category
Business & Entrepreneurship,Setting up / start-up / entrepreneurship,Loan
Target Beneficiaries
Individual
Brief Description
The Government of Tamil Nadu has launched the “Migrants Employment Generation Programme (MEGP)” for the Non-Resident Tamils, who returned back to Tamil Nadu due to Covid-19 Pandemic.
Benefit Type
In Kind
Eligibility Criteria
1. The applicant should have returned to Tamil Nadu on & after 01-01-2020 due to the Covid-19 outbreak. 1. The age of the applicant should be between 18 to 45 years in general and for special categories (Women/Minorities/ BC/MBC/SC/ST/Ex-servicemen/Transgender/Differently abled), the age relaxation is up to 55 years. 1. The applicant should possess a minimum educational qualification of 8th standard pass. 1. The family income of the applicant should be below ₹5.00 lakh. 1. The maximum project costs for Manufacturing / Trading / Service projects should be ₹15.00 lakh / ₹5.00 lakh / ₹5.00 lakh respectively. 1. The applicant’s/promoter’s contribution should be 10% of the project cost for the General category and 5% for the Special Category.
Application Mode
Online
Application Process
Application Processes: Step 01: The applicant willing to avail loan under the MEGP scheme should fill up the online application through the <nis:link nis:type=webUrl nis:id=slugId nis:text="Official Website" nis:value=https://msmeonline.tn.gov.in/megp/megp_desc.php nis:enabled=true/> of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu. Step 02: On the home page, click on “Apply Online” and then “New Application”. Step 03: Click on ‘Register’ and fill in the details like Name, Date of Birth, Email ID, Aadhaar Number & Mobile Number. Step 04: After successful registration, click on ‘login’ and fill in all the mandatory details. Step 05: Upload all the necessary documents and submit the application form. Post-Application Processes: Step 01: The applications received by District Industries Centres will be scrutinized and shall be placed before the Task Force Committee at least once a month. Step 02: The Selection will be based on the experience, qualification, skill, viability of the project, marketability, etc. Step 03: The bank branches shall call for personal interviews with the applications to provide subsequent provisional sanctions by them. The provisional sanctions Shall be intimated to the. District Industries Centres concerned. Step 04: The District Industries Centres shall arrange for compulsory Entrepreneur Development Program training for a period of two days by the Entrepreneur Development Institute and on completion, Entrepreneur Development Institute will issue certificates. Step 05: After successful completion of Entrepreneur Development Program training, the beneficiary will deposit the Promoter&39;s Contribution with the bank. Thereafter, the bank will disburse the 1st installment of the finance to the beneficiary on the production of the training completion certificates. Step 06: The respective disbursement advice should be forwarded to District Industries Centres along with the subsidy claims. Step 07: The Tamil Nadu Government subsidy amount will be drawn by the Commissioner of Rehabilitation and Welfare of Non-Resident Tamils and disbursed to the Industries Commissioner and Director of Industries and Commerce, where it will be transferred through Direct Benefit Transfer (D.B.T.) Mode with the lead district Bank and they will act as District Level Nodal Bank. Interest accrual, if any, shall be adjusted against the sanction of the contingency fund. Step 08: On receipt of the Subsidy claim raised by the financing branch duly countersigned by General Manager, District Industries Centre, District Nodal Bank will release the subsidy to financing bank branches. Step 09: The subsidy will be deposited in a Term Deposit Receipt (TDR) for 3 years at the financing bank branch level in the name of the beneficiary. No interest will be paid on the Term Deposit Receipt and no interest will be charged on a loan amount equal to the amount of the Term Deposit Receipt. Step 10: The subsidy will be credited to the borrower&39;s loan account after 3 years from the date of first disbursement to the borrower by the bank. In case the bank&39;s advance goes bad before the-three years period, due to reasons, beyond the -control of the beneficiary, the subsidy will be adjusted by the Bank to liquidate the loan liability of the borrower either in part or full. Step 11: The total subsidy amount shall be obtained through Government sanction in the formal Government Order by the Commissionerate of Rehabilitation and Welfare of Non-Resident Tamils with relevance to their targets to be allotted by the office of Industries Commissioner and Director of Industries Commerce during the beginning of the Financial Year. <nis:link nis:type=webUrl nis:id=slugId nis:text="Procedure for Online Filling of Application" nis:value=https://msmeonline.tn.gov.in/megp/pdf/guideline_tofill_application.pdf nis:enabled=true/> <nis:link nis:type=webUrl nis:id=slugId nis:text="Dos and Don’ts" nis:value=https://msmeonline.tn.gov.in/megp/pdf/Dos_Donot.pdf nis:enabled=true/>
Required Documents
- Identity proof i.e. copy of Election ID Card/ Aadhaar card
- Copy of PAN Card
- Passport size photo
- Proof of Educational Qualification
- Proof of age
- Caste/Community Certificate
- Residence proof
- Valid certificate for the proof of Ex-Serviceman /Differently abled /Transgender
- Bank account details
- Any other documents, if required
FAQs
What are the eligibility norms to get benefitted under this scheme?
Any individual, above 18 years of age. The upper age limit for General Category is 45 years and for the special category 55 years. The minimum Educational qualification is Pass in VIII Standard. The applicant should be a resident of the place for not less than 3 years. The family income of the beneficiary along with the spouse should not exceed ₹5,00,000/- per annum.
What is the component of Project cost?
Capital expenditure loan, one cycle of working capital, and 10% of the project cost as own contribution in case of a general category and 5% of the project cost in case of a special category loan.
Whether cost of land and building included in project cost?
No.
Whether EDP training is compulsory?
Yes
Which is the agency implementing the scheme at District Level?
This scheme is to be implemented by the Commissionerate of Industries and Commerce and this Commissionerate is the Nodal Agency at the State Level.
What are all the activities / area covered under this scheme?
All economically viable manufacturing services and business activities excluding direct agricultural operations like raising corporation etc.
What is the maximum project cost under each category?
₹15 lakhs for the manufacturing sector, ₹5 lakhs for the service sector and business sector.
What should be the promoter’s contribution?
10% for the General category and 5% for the special category (Scheduled Caste / Scheduled Tribes / Backward Classes / Most Backward Classes / Minorities / Women / Physically Challenged / Transgender).
What is the rate of interest charged under MEGP scheme?
Normal Bank rate of interest.
What is the repayment tenure under the scheme?
The repayment Schedule shall be for 5 years after an initial moratorium period of 6 months or the date of commencement of the project whichever is earlier.
What is the quantum of maximum Government subsidy?
Subsidy @ 25% of the project cost will be sanctioned to the beneficiaries subject to a maximum of ₹2.50lakh.
Can the project be financed jointly from two different sources( Bank/ Financial Institutions)?
No, it is not eligible.
Whether partnership concern eligible to avail loan?
No, the individual alone is eligible.
Does any collateral require?
No collateral is required.
How can an applicant apply under the scheme?
The applicant willing to avail loan under the MEGP scheme should fill up the online application through the Official Website of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu. https://msmeonline.tn.gov.in/megp/megp_desc.php