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Entrepreneur Development Scheme for Tamil Nadu


This scheme has been introduced with the specific aim to encourage entrepreneurship among people from economically and socially disadvantaged backgrounds who wish to promote their own enterprise, to generate income and to lead a life of dignity.


  • Persons without any asset back up but having relevant qualifications and experience for implementing viable project i.e., first generation entrepreneurs.  Ideally entrepreneurs who are engaged in some manufacturing/service/value addition activity shall be targeted under the scheme.
  • The promoters should have knowledge/experience in the particular line of proposed activity.
  • Existing small units requiring assistance for additional machinery / needs additional working capital
  • For transport loan cases, assistance shall be considered only for “OWNER DRIVEN” category i.e., entrepreneur should have valid license with badge for Auto and Tourist Taxi endorsement for the purchase of Tourist Taxies.

Assistance provided:

  • The minimum loan assistance shall be Rs. 50,000/. The maximum loan limit shall be Rs.5 lakh or 30 times on the net salary of the two guarantors put together whichever is lower.
  • Term and working capital loan can be sanctioned as a composite loan as a maximum of Rs.5 lakh.
  • Working capital can be sanctioned to units not exceeding the term loan amount or Rs.50,000/- whichever is higher.  Working capital can be sanctioned to Artisans not exceeding Rs.50,000/- with the proper assessment.


  • Primary assets shall be mortgaged to TIIC (Tamil Nadu Industrial Investment Corporation).  In case of loan for expansion, charge on the existing assets will be extended.
  • Third party guarantee shall be obtained as under:-
    • For loans upto Rs. 2 lakh – from one person
    • For loans above Rs. 2 lakh – from two people
  • The guarantor should be an employee of Central/State Government or Public Sector Banks/Financial Institutions or any other organizations/bodies established by Central/State Government (inclusive of Co-operative Societies and educational institution established by State and Central Government). The guarantor’s age is restricted to 50 years.
  • The guarantor should be a person owning land / land and building worth equal to or more than 2 times of the loan amount.  Value of the property shall be assessed by a TIIC official.
  •  The guarantor’s age is restricted to 60 years.

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