New Entrepreneur cum Enterprise Development Scheme (NEEDS) is an excellent initiative by the Tamil Nadu Government, Department of Industry, and Commerce. Also, the scheme’s goal is to provide opportunities for entrepreneurship to professional young people. And by providing capital and interest subsidies. The objective of the scheme is to help qualifying youth to grow first generation entrepreneurs. However, youth is the future of the country.
- Unit should be a newly built one in Micro and Small Enterprises in the manufacturing and service sectors.
- Professional youth with any qualification, Diploma, ITI/vocational training from a known institution.
- Women, SC, ST, BC, MBC, Minorities, Ex-serviceman, Transgender, Disable persons are eligible to apply.
- The age group of between 21-35 years below the General category and 21-45 years below the particular category.
- For not less than three years, the applicant must be a citizen of the Tamil Nadu District.
Loan details of New Entrepreneur cum Enterprise Development Scheme
- The minimum cost of the project is 10.00 rs lakh.
- The maximum cost to the project is Rs.500.00 Crore.
- The Subsidy portion restricts 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. May include project costs subject to the requirement that building costs do not exceed 25 percent of project costs. Investment in capital expenditure for service enterprises must not exceed less than 25 percent.
- In-Plant & machinery, only new machinery and secondhand machinery directly import by the entrepreneur are eligible.
- The cost of lease/rental buildings does not include in the project cost.
- Loan repayment period is up to 9 years
- The following expenses are not applicable for calculation of subsidy under this scheme:
Cost of rent or Building on lease.
ii. Technical know-how.
iii. Preparatory/ pre-operative expenses.
iv. Working capital perimeter.
Contribution on the loan scheme
- 10% for general category entrepreneurs.
- 5% for special category entrepreneurs are SC or ST, Women, Minorities, Ex-Servicemen, etc.
- 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