The Tamil Nadu Government’s Department of Industry and Commerce has launched an amazing effort with the new Entrepreneur cum Enterprise Development Scheme (NEEDS). The project also aims to equip professional young people with entrepreneurial opportunities. Also by giving capital and interest subsidies. The scheme’s goal is to help qualified youth develop into first-generation entrepreneurs. However, youth are the future of the country.

What are the eligibility requirements for the New Entrepreneur Cum Enterprise Development Scheme?

• The unit should be newly constructed for Micro and Small Enterprises in the manufacturing and service industries.
• Professional youth holding any certificate, diploma, or ITI/vocational training from a recognized institution.
• Women, SC, ST, BC, MBC, minorities, ex-servicemen, transgender people, and those with disabilities are all eligible to apply.
• The age range is 21-35 years below the General category and 21-45 years below the specific category.
• For under three years, the candidate must be a Tamil Nadu District citizen.

Loan details for the New Entrepreneur cum Enterprise Development Scheme

• The project’s minimal cost is Rs 10.00 lakh.
• The project’s maximum cost is Rs. 500.00 crore.
• The subsidy amount is limited to Rs.30.00 lakh for projects costing more than Rs.1.20 crore.
• Land costs include the project’s expenses based on the Guideline or market value. However, whichever is lesser.
• Building costs for offices, warehouses, laboratories, and so on. This may include project expenditures, provided that building costs do not exceed 25% of project costs. Service firms must invest at least 25% of their capital expenditure.
• In-plant and machinery, only new and used machinery directly imported by the entrepreneur are eligible.
• The project’s cost does not include the cost of leasing or renting buildings.
• The loan repayment period lasts up to 9 years.
• The following expenses do not apply to the computation of subsidies under this scheme:
  i. Rent or Leased Building Costs.
  ii. Technical know-how.
  iii. Preparatory/preoperative expenditures.
  IV. Working capital perimeter.

Contribution to the Loan Scheme

• 10% for general-category entrepreneurs.
• 5% of special category entrepreneurs are SC or ST, women, minorities, ex-servicemen, and so on.

What documents are required for the New Entrepreneur cum Enterprise Development Scheme?

• KYC documents
• Proof of identification: Aadhar card, PAN card, passport, voter ID.
• Proof of Residential Address
• Projected balance sheet/project report
• Business address evidence
• Business registration proof: – Partnership title / Certified copies of MOA / AOA

A business plan, also known as a project report, is a required document when asking for a bank loan. The bank utilizes this document to assess the project’s overall feasibility, risks, financial viability, and potential.

Conclusion

The New Entrepreneur-Enterprise Development Scheme (NEEDS) is a comprehensive project aiming at creating a strong entrepreneurial environment in Tamil Nadu. The program enables young entrepreneurs to create successful businesses by offering financial assistance, skill development, and coaching. This, in turn, promotes economic growth and employment generation throughout the state.

This updated content provides a thorough explanation of the NEEDS Scheme, emphasizing its aims, features, eligibility criteria, and application process. It keeps the information updated and relevant, providing vital insights for potential entrepreneurs in Tamil Nadu.