The 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 grow as first-generation entrepreneurs. However, youth is the future of the country.

What are the Eligibility Criteria for New Entrepreneur cum Enterprise Development Scheme?
  • The unit should be a 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.
Loan details of New Entrepreneur cum Enterprise Development Scheme
  • 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 Documents needed for New Entrepreneur cum Enterprise Development Scheme?
  • 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

In the above list, a business plan also known as a project report is a crucial document when applying for a bank loan. The bank uses this document to analyze the overall feasibility, risks, financial viability, and potential of a project.

Therefore, a well-crafted and convincing project report increases the chances of loan approval. With Finline you can craft a compelling project report in less than 10 minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your project report.