Did you realize that more than 34 percent of the unemployed in India are educated young people? In an effort to curb this rising menace, different state governments have come up with special programs that will help to generate employment opportunities through entrepreneurship. An example of such a program is Unemployed Youth Employment Generation Programme (UYEGP Scheme).
The UYEGP scheme aims at making the unemployed youth self-reliant through establishment of their own businesses. It offers financial support through subsidized loans and therefore a first time entrepreneur can easily venture into small manufacturing, service or trading business. This blog will look into what the UYEGP scheme is, its benefits, eligibility requirements and how you can apply online.
What is UYEGP Scheme?
Unemployed Youth Employment Generation Programme (UYEGP) is a government initiative put in place to assist unemployed youths to establish their own small scale businesses. The scheme offers to help in funding by the use of UYEGP loan and therefore first-time entrepreneurs can easily establish manufacturing, service or trade enterprises without incurring high costs of investment.
The potential applicants may apply online via the official site or go to the District Industries Centre (DIC) to consult. The UYEGP scheme eligibility demands that the applicants must also be the residents of the state, and they are usually aged between 18 to 35 years, and must have at least an 8th standard pass qualification.
The UYEGP scheme guidelines contain clear guidelines on how to prepare a business plan, the mandatory entrepreneurship development program (EDP) and the required documents to be provided to process the loan. Interested persons can simply apply online through the UYEGP loan apply online process and it is easy, transparent and available to all interested persons.
What are the Advantages of UYEGP Scheme?
Loan for Manufacturing Industry: Manufacturing industry is also eligible to take loans of 10 lakhs to start or expand the manufacturing unit.
Loan for Service Industry: Loans of up to 2 lakhs are offered to service based companies under the scheme.
Loan for Trade Activities: The upper ceiling of loan is 1 lakh to start small trading businesses.
Low Interest for Subsidized Loan: The government offers a subsidy to lessen the financial burden, which makes the loan affordable to the young entrepreneurs.
Collateral-Free Loan (Small Loans): The scheme provides most of the small loans without collateral requirement and this eases the beginners.
Promotes Entrepreneurship: The scheme helps young people to establish their businesses and thus boosts the economy and employment in the local communities.
What are the UYEGP Scheme Highlights?
- For the General Category of entrepreneurs, the Promoter contributes 10% of the project cost, while for the Special Category, the Promoter contributes 5%.
- Subsidy@25% of project cost (not exceeding Rs. 1.25 lakhs).
- 7 days of EDP training is mandatory for the selected beneficiaries. The District Task Force Committee will conduct interviews to select beneficiaries at least once every fortnight.
What is the UYEGP Scheme Eligibility?
Minimum Education: The candidate should have cleared at least 8th standard.
Age Limit:
- General group: 18-35 years
- Special categories (SC/ST/OBC/minorities/women/ex-servicemen/transgender/PH): 45 years
The annual family income: The annual income of the family should not be more than 1,50,000 to 5,00,000 rupees according to state rules.
Residency Requirement: The candidate should have resided in the state not less than 3 years.
No Prior Subsidy: The applicant must not have drawn any loan or subsidy under any other scheme of central or state government.
Mandatory EDP Training: The borrower is required to undergo the training called Entrepreneurship Development Programme (EDP) before being given the loan.
What are the Documents needed for the UYEGP Scheme?
- Transfer certificate/ Record Sheet issued by School/College. (Two Copies)
- Ration Car. (Two Copies)
- In the case of applicants who don’t possess a valid Ration Card, a Nativity certificate from the Thasildhar / Aadhar card xerox / Election voters identity card xerox. (Two Copies)
- Project Report/Business Plan
- Valid Quotations (Original & Duplicate ) with GST number
- Community Certificate(Two Copies)
- Ex-Serviceman /Differently abled /Transgenders should apply with a valid certificate (Two copies ) ➢ Affidavit – A format enclosed herewith for reference to the candidate which should be typed in an Rs.20/- Non-Judicial Stamp Paper duly Certified and Signed by the Notary Public and then submitted along with a copy of Rental/Lease Agreement to the bank while sanctioning of the loan.
You should enclose the aforementioned documents with the District Industries Centre.
How to Get Started: UYEGP Loan Apply Online Process Made Easy
It is easy to go through the UYEGP Loan Apply Online in a couple of steps. This is how you may apply:
- Go to MSME Portal: Open the official MSME site, select UYEGP, and click on Apply Online and then New Application. Sign up with your name, mobile number, and email.
- Enter Your Details: Enter your personal information, business concept and attach a passport size photo (max 50 KB).
- Add Business Information: Write about your business plan, the amount of investment you need, quotes of vendors and GST (in case you are going to charge GST).
- Upload Documents: Upload required documents such as ID proof, address proof, and educational certificate, community certificate, project report, and vendor bills.
- Appear in the Interview: Your application will be verified by the District Industries Centre (DIC) after which you will be asked to appear in the interview. You can be summoned to have an interview with the District Task Force.
- EDP Training: Once approval has been given, the applicant is required to undergo a 7-day Entrepreneurship Development Programme (EDP) then submit the certificate to the bank to receive the loan.
Create Your UYEGP Scheme Project Report With finline!
The UYEGP Scheme is an excellent chance for the unemployed youth to make their business ideas come true. This scheme provides easy loans with subsidies and low requirements whether you are planning to start a small manufacturing unit, service business or a trading venture. It not only encourages self-employment, but it also assists in boosting the local economy.
A well-prepared project report is very important in case you are intending to apply under the UYEGP Scheme. That is where Finline can assist. Finline is a platform that allows you to generate professional project reports in 10 minutes- even in your own language. Finline reports are accepted by all banks and other financial institutions meaning that the process of applying for a loan will be easier and quicker.
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