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 scheme mainly target educated youth with any Degree, Diploma, ITI / Vocational Training from recognized Institutions.
Subsidy provided under the NEEDS Scheme
A subsidy to the tune of 25% of the project cost not exceeding Rs.25.00 lakhs is provided under the NEEDS Scheme. For projects costing more than Rs. 1.00 Crore, subsidy component is restricted to Rs. 25.00 lakhs. Project cost includes capital expenditure and margin money for working capital. Cost of rented/leased building, technical know-how, preliminary/ pre-operative expenses and working capital margin will not be subsidized. Of the total project cost, promoter contribution must be more than 10% of the Project Cost for general category entrepreneurs and 5% of the project cost in case of special category entrepreneurs (BC / MBC / DNC / SC / ST / Women / Minorities / Ex-Servicemen / Transgenders / Differently abled Entrepreneurs).
In addition to the above 25% subsidy, an interest subsidy to the tune of 3% is also provided under the NEEDS Scheme. For enterprises financed by Tamil Nadu Industrial Investment Corporation (TIIC), the loan will be extended with a 3% rebate and the interest rebate of 3% will be reimbursed to TIIC on a quarterly basis. For loans extended by commercial banks, the 3% interest subsidy will be provided as a back-ended interest subsidy on a quarterly basis during the entire repayment period.
All entrepreneurs within the age of 21 to 35 are eligible under the General Category. Entrepreneurs within the age of 21 to 45 who are also Women / SC / ST / BC / MBC / Minorities / Ex-Servicemen / Transgenders / Differently abled persons are eligible under the Special Category.
More Details – Click