New Entrepreneur cum Enterprise Development Scheme

The NEEDS Scheme is promoted by the Directorate of Industries and Commerce, Government of Tamil Nadu for providing opportunities for young/new educated entrepreneur with subsidy and support for starting a new venture.

The NEEDS Scheme mainly target educated youth with any degree, diploma, ITI/vocational training from recognized institutions. TIIC, the ideal destination for business loans in Tami Nadu, also acts as the nodal agency for Government subsidies for customers availing loan for business.

Objective

Assisting educated youth to become first generation entrepreneurs.

Eligibility

• New Micro and Small enterprises in manufacturing and service sectors 
• Educated youth with any degree, diploma, ITI/vocational training from a recognized institution and in the age group of 21-35 years under General category and 21-45 years under special category (women/SC/ST/BC/MBC/minorities/ex-serviceman/transgender/differently abled persons)
• The applicant should be a resident of Tamil Nadu state for not less than 3 years
• Partnership firms: Subject to satisfying the eligibility criteria by all the partners, partnership concerns may be considered for assistance under the scheme. However, EDP training will be provided to only one of the partners authorized by other partners in such cases
• Entrepreneur who availed assistance under PMRY/PMEGP/REGP/UYEGP/TAHDCO, SHG or any other scheme of Government of India or state Government will not be eligible for assistance.

Benefits

• Minimum project cost is Rs. 10 lakh.
• Maximum project cost is Rs. 500 lakh.
• For projects costing more than Rs. 1.20 crore, subsidy component will be restricted to Rs. 30 lakh.
• Cost of land may be included in the project cost at guideline value or market value whichever is lower.
• Cost of construction of building such as office, work shed, laboratory etc. can be included in project cost subject to the condition that the cost of building shall not exceed 25% of project cost. In respect of service enterprises, investment in capital expenditure should not be less than 25% of the total project cost.
• In respect of plant and machinery, only new machinery and second hand machinery directly imported by the entrepreneur would be eligible.
• The cost of leased/rental building shall not be included in the project cost.

Training

The Entrepreneurship Development Institute (EDI), Guindy, Chennai will give training to the identified beneficiaries. 

Promoter’s Contribution

• 10% for general category entrepreneurs.
• 5% for special category entrepreneurs.

Eligible Subsidy

The quantum of subsidy will be 25% of project cost subject to a ceiling of Rs. 30 lakh.

Repayment Period

Up to 9 years including holiday period of 2 years

Collateral Security

50% on the proposed loan amount

How to apply

For online application, click here. 

About TIIC

The Tamil Nadu Industrial Investment Corporation Ltd. (TIIC) is a premier State Financial Corporation established in the year 1949. TIIC fosters industrial development in Tamil Nadu by providing financial assistance to industries for purchase of land, machinery and construction of buildings. TIIC provides financial assistance at competitive interest rates for setting up of new industrial units and for expansion/modernization/diversification of existing industries in Tamil Nadu. It also offers loan for service sector projects such as hotels, hospitals and tourism related projects.

Source: TIIC Portal