Did you know that in recent years, more than 5,000 new businesses have been started in Tamil Nadu with the help of the NEEDS Scheme? The Tamil Nadu government created the New Entrepreneur-cum-Enterprise Development Scheme (NEEDS) that is a flagship program to support first-generation entrepreneurs. It offers financial support, training, as well as subsidies in order to enable individuals to realize their business ideas. This scheme can provide the right platform to launch any type of business be it manufacturing unit, service enterprise or trading business with the backing of the government.

What is the New Entrepreneur-cum-Enterprise Development Scheme (NEEDS)?

The New Entrepreneur-cum-Enterprise Development Scheme (NEEDS) is a kind of startup support program initiated by the Tamil Nadu Government to assist the young people to start their own business. The aim is to make educated young people successful first-generation entrepreneurs through monetary assistance, training, and mentoring.

In the scheme, the interested candidates receive subsidies on capital and interest to establish new enterprises either in the manufacturing or service sectors.

The most important facts are the following ones:

  • NEEDS Scheme Eligibility: Graduates, diploma or ITI holders between the age of 21-35 years (up to 45 years in case of SC/ST, women and differently-abled).
  • NEEDS Scheme Subsidy Details: 25 per cent capital subsidy (up to 25 lakhs) and 3 per cent interest subsidy on loan.
  • NEEDS Scheme Age Limit: General category: 2135 years; special categories: up to 45 years.
  • NEEDS Scheme Apply Online: Online application can be done in the official portal of Tamil Nadu MSME department.
  • NEEDS Scheme Loan Amount: The cost of the project should be between 10 lakhs and 5 crores and there should be bank loans.
  • NEEDS Scheme Required Documents: ID proof, educational certificates, community certificate (if needed), project report and address proof.

The NEEDS Scheme presents an excellent chance to the young generation of Tamil Nadu to launch their own business with a very good backing of the government.

What Are the NEEDS Scheme Eligibility Criteria for Entrepreneurs?

  • The unit should be newly built for Micro and Small Enterprises in the manufacturing and service sectors.
  • Professional youth with any qualification, Diploma, or ITI/vocational training from a known institution.
  • Eligible individuals for application include women, SC, ST, BC, MBC, minorities, ex-servicemen, transgender, and disabled persons.
  • The age group is between 21-35 years below the General category and 21-45 years below the particular category.
  • For under three years, the applicant must be a citizen of the Tamil Nadu District.

What Are the NEEDS Scheme Loan Amount Limits and Benefits for New Entrepreneurs?

  • The minimum cost of the project is 10.00 rs lakh.
  • The maximum cost of the project is Rs.500.00 Crore.
  • The Subsidy portion is restricted to Rs.30.00 lakh for projects costing more than Rs.1.20 Crore.
  • Land costs include the project’s expense at the cost of the Guideline or the market value. However, whichever is less.
  • Building costs such as office, warehouse, laboratory, etc. This may include project costs subject to the requirement that building costs do not exceed 25 per cent of project costs. Investment in capital expenditure for service enterprises must not exceed less than 25 per cent.
  • In-plant & machinery, only new machinery, and secondhand machinery directly imported by the entrepreneur are eligible.
  • The project cost does not include the cost of leasing/renting buildings.
  • The loan repayment period is up to 9 years
  • The following expenses are not applicable for the calculation of subsidy under this scheme:
  • i. Cost of rent or Building on lease.
  • ii. Technical know-how.
  • iii. Preparatory/ pre-operative expenses.
  • iv. Working capital perimeter.

Contribution to the loan scheme 

  • 10% for general category entrepreneurs.
  • 5% for special category entrepreneurs are SC or ST, Women, Minorities, Ex-Servicemen, etc.

What Are the NEEDS Scheme Required Documents for Application?

  • KYC documents
  • Proof of ID: Aadhar card, PAN card, Passport, voter ID
  • Proof of residential address
  • Projected balance sheet / Project report
  • Business address proof
  • Business registration Proof: – Partnership title / Certified copies of MOA / AOA

How Can NEEDS Scheme Apply Online?

In order to apply online to the NEEDS Scheme, one should be an eligible candidate who visits the official Tamil Nadu MSME Department portal. It is also necessary to ensure the NEEDS Scheme eligibility, which needs the applicant to be a graduate, diploma or ITI holder between the age of 21 to 35 years (upto 45 years in case of SC/ST, women and differently-abled persons – as per NEEDS Scheme age limit).

The following are the steps to be used:

  • Visit the NEEDS Scheme apply online site.
  • Sign up with your basic information and attach all required documents of NEEDS Scheme including ID proof, educational certificates, address proof, community certificate (if any), and a detailed project report.
  • Enter your business particulars and intended NEEDS Scheme loan amount (10 lakhs to 5 crores).
  • Make the application and await verification.

After approval, you can enjoy such benefits as 25 per cent capital subsidy (up to 25 lakh rupees) and 3 per cent interest subsidy, which are stated in the NEEDS Scheme subsidy information. This is to assist young entrepreneurs in Tamil Nadu in bringing their business concepts to life with a well-organized financial and government backing.

Why Choose Finline for the Project Report for Bank Loan?

NEEDS Scheme is an excellent method of young people of Tamil Nadu starting their own business with the assistance of the government. It provides subsidies, training and support to convert your ideas into reality.

You require a good project report in order to apply. That is where Finline comes in. Using Finline, you can produce a professional quality project report in less than 10 minutes and in your own words. All the major banks in India accept these reports.

Click now to create your report and take the next step for your business.

NEEDS Scheme FAQs

NEEDS scheme is also available to first-generation entrepreneurs in Tamil Nadu. The candidates should be graduates, diploma or ITI-certified persons aged between 21 to 35 years. The age limit is up to 45 years in the case of SC/ST, women and differently-abled candidates.

 The NEEDS loan scheme aids the new business in manufacturing and service sectors. The projects should be viable and within the sectors that have been approved in the scheme. Trading activities are normally not covered.

 The cost of the project should be between 10 lakhs and 5 crores under NEEDS scheme. You will receive a 25 percent capital subsidy (up to 25 lakhs) and 3 percent interest subsidy for bank loans.

The documents needed are mostly:

  • Identity and residential proof
  • Certificates of educational qualification
  • Community certificate (where available)
  • Project report (in detail)
  • Passport-size photo

These papers are necessary in filling out your NEEDS application.

 Yes, Finline will assist you to develop a professional project report within 10 minutes. It is convenient, in any language you would like it to be and is accepted by every public and private bank in India, which makes it ideal in your NEEDS scheme application.