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Get Loan Up To 5lakh to Start Your Own Business in Tamil Nadu

Tamil Nadu has emerged as one of the leading states for starting up business in India. An annual Small and Medium Enterprises (SME) survey conducted by India SME Forum in June 2014 reveals that Tamil Nadu is the most preferred destination for start-ups, as the state has a highly entrepreneur friendly conductive business climate. Unemployed Youth Employment Generation Programme (UYEGP) provides financial assistance to economically backward classes in manufacturing, service and business sector except any direct agricultural activities like raising crops.


  • Provide employment opportunities for the weaker unemployed youth in their native places
  • To put an end to mass migration from rural to urban areas due to unemployment
  • To facilitate provisions of collateral free assistance under Credit Guarantee Trust for Medium , Small and Micro Enterprises (CGTMSME) merging with Unemployed Youth Employment Generation Programme (UYEGP)


Maximum project cost

Sector Loan
Manufacturing Sector  5 lakh
Service Sector 3 lakh
Business Sector 1 lakh
  • Under this scheme, loans can be availed from nationalized banks, private banks and Tamil Nadu Industrial Cooperative Bank
  • No collateral security is needed to get loans under this scheme.

Promoter’s contribution

  • For general category, the owner’s contribution should be of 10%
  • For special category (SC/ST/OBC/Minorities/Women/Ex-servicemen/Physically Challenged/Transgender) owners’ contribution should be of 5%.


At the rate of 15% of the project cost, subsidy will be provided to the beneficiaries.


A compulsory training of 7 days will be given to the beneficiaries in Entrepreneur Development Programme organized by Entrepreneur Development Institute of Government of Tamil Nadu.

Eligibility Criteria

  • Age– Any individual over 18 years of age (for General category-maximum age should not exceed over 35 years of age, for Special category- maximum age should not exceed over 45 years)
  • Education– Should have minimum education of standard 8
  • Income ceiling– The family income of the beneficiary along with the spouse should not exceed Rs 1.5 lakh per annum
  • Residence– Should be a resident of Tamil Nadu for at least 3 years

Implementing agencies

District Industries Centre (DICs) of the concerned Districts and the Office of the Regional Joint Director of Industries and Commerce in respect of Chennai District

How to avail

To avail financial assistance click here

To avail subsidy click here

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  1. Sir’ i want to start new bussiness Pls help for that i am a diploma holder

  2. Hello sir,I am sriram ,I want a start up buissness loan pls help me….

  3. Hello Sir,
    This is hasan i was completed diploma in 3d animation in davinci media college and now i have a good knowlege of graphic designing so i am planning to start a flex printing business in my native karur (Tamil nadu). If any possibilitys to get a loan frrom you. Help me to grow up.

    Thank you.

  4. I got franchise for nonstopcourier in whole cuddalore district.so that i need loan. How to apply it and where to get.kindly help me.

  5. sir i have ideas for my own business but i dont have money because my family situation very critical so please give me good tips…

  6. Sir ineed help for u

  7. Hollo sir.,
    i sivakumar M,sc graduate..i have business plan but no money…how to get business loan…i will decided with business in animal husbandry

  8. dear sir madem,
    Im arun john from karaikudi. im
    degree holdel in B.Sc comp.sci. im doing
    a buissiness in telecom industry for the pas
    tow years. now im having an apportunity for to develop my buissiness. so please let me a procedure for how can apply. i have a tin number current account in trade name an for past two year IT statesment and all oriented buisness documents. please help me for getting loan by lowest interest.

    thanks and regs,
    john B.Sc

  9. i started new small fast food , we need 5 to 10 lakhs loan for more development . pls help for the procedure of loan. I need governement scheme loan.

  10. sir,
    i am ramesh M.C.A, i want bussiness ideas and 10 lakh above GOVT loan.any possibility sir.But my bussine in rural area.

  11. Dear Sir,

    I am Aruna ,I want a start up buissness loan for Garments Manufacturing upto 25 lakh.

    Kindly help me.

    Thanks & Regards

  12. Hai sir .,i did engineering and am much intrested in business because i did part time jobs in my studing life…so i plan for business also am not have investment so i need your help to growth us . Thank you friend

  13. i start up new small business. i want 2 to 3 Lak loan amount for developed to my new business. so i need government scheme loan. kindly help me.

  14. i started travel agency office online bus ticket booking,i need 5 to 7 Lkhs more,pls help procedure of loan,i need goverment scheme loan

  15. Hi sir,
    I’m planning to start a garment factory in Tirupur (India) with capital of 2 lakh rs and i like to know how to get a loan for developing the business and also kindly let me know can i apply for a loan before starting my business. Also i like to hear your valuable suggestion on this regards

    +91 98947 05944

  16. HLO SIR,

  17. Hi,
    I have completed my MBA with 15 years of experience in service industry like housekeeping, security & Private Investigation. I want to start my own investigation agency in Chennai, currently my age is 48, can you please advise me.


  18. hello I am a degree holder (bba) I want to start a business. but I don’t have specific plan and finance facility for start a business.

  19. K K Sathiyamoorthi

    Dear sir,
    I am Sathiyammorthy from Pollachi, i have completed MBA(Fin & Marketing)degree. Now i am doing a Coconut business for the past tow years. Now i want to manufacture coir yarn business. so please send me the procedure to get the Loan and contact person.

  20. we have manufacturing unit we need loan for working bcapital 10 lakhs
    kindly guide me.

  21. Pls help me my family middle class I started own business pls help me

  22. i am want to start by new bussiness pls help me & ideas

  23. I am prakash i start up new small business. i want 5 to 8 Lak loan amount for developed to my new business. so i need government scheme loan. kindly help me.

    my mail ide:[email protected]
    my number:8344469469

  24. Sir i just started my new business but doing on very low capital. I am b.com graduate. Please help me to get this loan so that i can appoint some persons n buy machines.

  25. Hello Sir ,
    I am Priya. I completed B.Tech IT and I had knowledge in Non voice BPO line. I would like to start my own business(non voice process) in my native itself. So could you please help me to get a loan in salem.

  26. Sir’ i want to start bussiness photo studio Pls help

  27. Your comment is awaiting moderation.
    Sir’ i want to start bussiness photo studio Pls help pls call me 9600155003

  28. Dear Sir,

    This is kalaiyarasi, my husband wants to start a small hotel in chennai, kindly guide me to get the loan mentioned above.

  29. Dear Sir,
    My name is nithya I’m completed B.E(CSE) Could u give any Idea for start new bussiness and how to I get loan from government bank.

  30. Hi ,

    I am imran basha ,
    Working at Banglore at private company ,
    My native is tamil nadu,
    I m planning to start new business in tamil nadu , Kindly help me on this

  31. Hello sir
    This is Sabarish from Coimbatore I would like to start new business how can I get this loan and when can I get this loan pls rply for me
    Thank u sir

  32. Dear sir, I am Mohammed form anthiyur I am footwear business running here I want loan 6 lakhs please help me

  33. Sir I am karthik I want to new business start pls help me. I am degree holder.

  34. Respected sir ,
    I’m Bharani Raja , I like to start a own business . So, I need a government loan . Please help me . I’m from Erode district .

  35. sir I’m lakshmi.R from neyveli…I have completed till 8th in school and 10 in private..I’m house wife..I wish to start a xerox shop…can I get the subsidy loan..I belong to sc community…I don’t have any financial status sir..please help me

  36. Hi sir I am like to start my own business like mobile shop sales and service and also computer centre I need loan for that.if it possible meanse plese help me

  37. Sir I run a hotel I want to loan for my business development. Pls arrange loan.

  38. hi sir
    i am Thirumani from karur . i am plan to start new business. so please send me the procedure to get the Loan .

  39. Sir, I’m manju I have completed M.sc maths I want to start export business pls help me si

  40. I want loan to start my own play school

  41. Sir I am stared dairy business I am completed bebe pls help

  42. hi sir i am saranya i want to start my own bussiness pls help me and provide for loan

  43. Vanakam na oru naduthara kudumbam tholil arambika loan tharuvirkala???

  44. Hellow sir,i.am Parthiban and i am completed ba.b.ed, i want to start a new buisness how to i get a goverment loan pls help me.

  45. sir I am completed engineering I want start new business please give me a suggestion sir

  46. Dear sir, I am experienced for a food and allied products in two years I am decide to startup a own juice shop and snack we need a financial support to develop kindly guide to get a Govt loan. help us Thank you. shanmugavel .s

  47. Dear sir I am trichy I am new busines start please support ideas in loan

  48. Pls lone sir

  49. Sir, Im already doing business of Miniature and Architecture Building Models. Can i get loan?
    Please see my business page

  50. dear sir my new small business fast boot started 2, 3 lak loan amount for government scheme loan kindly help me sir thanks condect:9677738132

  51. Hi sir iam arthi I worked as a kindergarten teacher for 11yrs but I cannot take care of my son now iam not working and my husband not having job if it is a business we can takecare of our children also financially it will support for us pls guide us if u give training come loan it will b easy for us kindly guide 36+age for both u like to do business my mail I’d

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