Let’s look at some of the schemes in Tamil Nadu and their benefits:
1. New Entrepreneur Cum Enterprise Development Scheme
One of the most popular business loan schemes in Trichy, Tamil Nadu and other such business hubs in the state is the New Entrepreneur Cum Enterprise Development Scheme, with the objective of educating the youth in entrepreneurial training in conceiving, planning, initiating, and launching an enterprise.
The eligibility criteria for this scheme are as follows,
● Any MSME in the manufacturing sector and service sector
● Should be a resident of Tamil Nadu State for not less than 3 years
● Educated youth with any degree, Diploma, or ITI/vocational training from a recognised institution. For the general category, they should be in the age group of 21-35 years and 21–45 years for the special category.
● Firms under partnership may also be considered for this scheme. However, EDP training will only be provided to one of the partners authorised by the other.
● Entrepreneurs who have already availed assistance under PMEGP/PMRY/UYEGP/REGP/TAHDCO, SHG or any other scheme of the Government of India will not be eligible for assistance.
2. Features of UYEGP-2022
● It is a scheme for finding a way around the unemployment problems of socially and economically weaker sections of society.
● Loan assistance from commercial banks
● The project cost of manufacturing, trading, and service projects: maximum project costs are Rs. 15.00 lakh, Rs. 5.00 lakh, and Rs. 5 lakh, respectively
● Individual-based capital subsidy @ 25% of the project cost (Maximum Rs. 2.50 lakh)
● Promoter’s contribution is 10% for general and 5% for special categoryLet’s talk about the eligibility criteria for this scheme,
● The entrepreneur should be above the age of 18 and should have a minimum qualification of the eighth standard. However, the upper age limit for the special category is 45 years, and the general category is 45 years as well.
● The family income of the entrepreneur, including the spouse should not exceed Rs. 1,50,000 per annum.
● Any resident of Tamil Nadu for more than 3 years is eligible.
● Only individuals are eligible to apply for the scheme. However, partners won’t be eligible.
● If the applicant has previously applied for or availed any loan, they would not be eligible.
3. Pradhan Mantri Mudra Yojana Scheme
Yet another entrepreneur scheme in Tamil Nadu is the Pradhan Mantri Mudra Yojana (PMMY), which is a flagship Government scheme to ‘fund the unfunded.’ The aim is to bring small businesses, entrepreneurs, micro-units and other trade, manufacturing, and service sector units to formal financing and provide them with affordable credit. Which means, availing a business loan in Tamil Nadu becomes more accessible. It was launched by the Hon’ble Prime Minister on April 8th, 2015. The scheme allows small borrowers to avail loans from all Public Sector Banks, such as PSU Banks, Foreign Banks, Micro Finance Institutions (MFI), and Non-Banking Finance Companies (NBFCs) for loans up to Rs 10 Lakh for non-farm income-generating activities.
So, what are the features of PMMY?
● The PMMY scheme has no minimum loan amount but has a maximum loan amount of up to 10 Lakh
● The repayment tenure under this scheme is from 3 years to 5 years
● The scheme has no processing charges
● Requires no collateral
If you are looking for business loans in Kancheepuram, Tamil Nadu, or any other metro city in the state through the PMMY scheme, then you will have to first identify which category of loan you are eligible for.
● SHISHU loan – For micro and medium-sized businesses, that require loans up to Rs. 50,000
● KISHOR loan – For businesses who need to buy new equipment and machinery. They can avail loans ranging from Rs. 50,001 to Rs. 5,00,000 under this scheme
● TARUN loan – Those businesses that are established can avail a loan from Rs. 500,001 to Rs. 10,00,000
Tamil Nadu is a state that has always promoted the growth of MSMEs. By focusing on building a credit infrastructure and making it accessible for MSMEs to avail business loans in Kancheepuram, Tamil Nadu, and other such premiere cities, it has transformed itself into one of the fastest-growing MSME sectors in the state and can enjoy a high degree of comfort and ease of doing business. To help entrepreneurs launch their businesses in the state, it has offered a variety of subsidies, including power subsidies, generator subsidies, interest subsidies, payroll subsidies, and many more schemes and programmes. Through this scheme, a lot of entrepreneurs have got business loans in Trichy, Tamil Nadu and other such major cities in the state that have slowly become a growing market for emerging businesses.
If you are looking for a loan for your business, give us a call and we will be available at your service right at your doorstep.