MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees
Tamil Nadu's MEGP offers Covid-19 migrant returnees subsidised bank loans of up to ₹14.25 lakh, a subsidy capped at ₹2.5 lakh, collateral-free credit under CGTMSE, entrepreneurship training and marketing support.
- Funding amount
- ₹1.4Cr (debt / loan)
- Funding type
- Debt / Loan
- Provider
- Commissionerate of Industries and Commerce, Government of Tamil Nadu (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
MEGP — the Migrants Employment Generation Programme — is a Tamil Nadu government scheme built on one straightforward idea: Tamils who came home during the pandemic should be able to build a business of their own instead of waiting for another overseas job. It is run by the Commissionerate of Industries and Commerce, with the Commissionerate of Non-Resident Tamils and District Industries Centres (DICs) handling delivery on the ground.
The scheme channels subsidised bank credit into micro-enterprises across three broad activity areas — manufacturing, service and business — in both rural and urban parts of the state. Its stated objectives are to generate employment for returning migrants, restore livelihoods to those who lost work because of the Covid-19 outbreak, and open up collateral-free advances under the Credit Guarantee Trust for Micro, Small Enterprises (CGTMSE).
Support does not end with the loan. Every beneficiary must complete a two-day Entrepreneur Development Programme conducted by the Entrepreneur Development Institute of the Government of Tamil Nadu, and DICs help MEGP units reach buyers through exhibitions and buyer-seller meets organised along with other programmes.
Highlights
- Project cost ceiling: ₹15 lakh for manufacturing, ₹5 lakh for service and business
- Bank loan covers 90-95% of project cost, up to ₹14.25 lakh
- Subsidy of 25% of project cost, capped at ₹2.5 lakh
- Collateral-free advances facilitated under CGTMSE
- 5-year repayment term with a 6-month moratorium
- Mandatory 2-day Entrepreneur Development Programme plus exhibition and buyer-seller support
Who can apply
MEGP is meant specifically for Non-Resident Tamils who came back to Tamil Nadu because of the Covid-19 outbreak, and it is a debt scheme rather than an open grant, so both the applicant's background and the proposed project are checked.
- Return date: You must have returned to Tamil Nadu on or after 1 January 2020 owing to the Covid-19 pandemic.
- Age: 18 to 45 years for general category applicants, and up to 55 years for special categories — women, minorities, BC, MBC, SC, ST, ex-servicemen, transgender persons and differently-abled persons.
- Education: Minimum 8th standard pass.
- Family income: Below ₹5.00 lakh.
- Project size: Maximum project cost of ₹15.00 lakh for manufacturing and ₹5.00 lakh for service and business sector projects.
- Promoter's contribution: 10% of project cost for the general category and 5% for the special category.
- Clean banking record: You should not have defaulted with any nationalized bank, financial institution or cooperative bank.
- No prior subsidy: Applicants who have already received assistance under another subsidy-linked government scheme are not eligible.
Projects may be set up in the manufacturing, service or business sectors, in rural as well as urban areas of Tamil Nadu.
MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
MEGP is a credit-linked package: a bank loan forms the bulk of the money, a government subsidy softens the cost, and training and market access are added on top.
- Bank loan: Banks sanction 90% to 95% of the project cost. On the full ₹15 lakh manufacturing project ceiling this works out to a maximum loan of ₹14.25 lakh. Service and business projects are capped at a ₹5 lakh project cost, with loan support scaled to that smaller ceiling.
- Government subsidy: A subsidy of 25% of the project cost, capped at ₹2.5 lakh, is provided to beneficiaries. It is first placed in a Term Deposit Receipt (TDR) for three years and then credited to the borrower's loan account. No interest is charged on the loan amount equal to the subsidy.
- Collateral-free credit: The scheme facilitates collateral-free advances to eligible entrepreneurs under the Credit Guarantee Trust for Micro, Small Enterprises (CGTMSE).
- Repayment: A structured repayment schedule of 5 years, after an initial moratorium of 6 months or the date of project commencement, whichever is earlier.
- Entrepreneurship training: A mandatory two-day Entrepreneur Development Programme delivered by the Entrepreneur Development Institute (EDI) of the Government of Tamil Nadu.
- Marketing support: Products from MEGP units are promoted through organised exhibitions and buyer-seller meets, arranged by District Industries Centres in coordination with other programmes.
About the provider
MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees is offered by Commissionerate of Industries and Commerce, Government of Tamil Nadu, a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Applications are handled at the district level and then reviewed by a state-level committee before the financing bank takes its own call on viability.
- Scrutiny at the District Industries Centre: Applications received by the DIC are examined first.
- Task Force Committee review: Scrutinised applications are placed before the Task Force Committee at least once a month.
- Assessment criteria: Selection of beneficiaries is based on the applicant's experience, educational qualification and skill set, along with the viability and marketability of the proposed project.
- Personal interview with the bank: Shortlisted applicants are invited for personal interviews by the financing bank branches.
- Provisional sanction: The bank subsequently issues provisional sanctions based on techno-economic viability.
Documents you’ll need
Before you apply to MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees is best suited for startups in India seeking non-dilutive funding of ₹1.4Cr. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What exactly is MEGP, and which department runs it?
MEGP stands for the Migrants Employment Generation Programme, a Tamil Nadu government initiative that helps Non-Resident Tamils who returned home because of Covid-19 set up micro-enterprises of their own. It is implemented by the Commissionerate of Industries and Commerce along with the Commissionerate of Non-Resident Tamils, while District Industries Centres handle the scheme locally at the district level.
Who is eligible to apply for MEGP?
You must be a Non-Resident Tamil who came back to Tamil Nadu on or after 1 January 2020 owing to the Covid-19 outbreak. Applicants should be between 18 and 45 years old, or up to 55 years if they fall under a special category such as women, minorities, BC, MBC, SC, ST, ex-servicemen, transgender persons or differently-abled persons. A minimum of 8th standard pass is required, family income must be below ₹5.00 lakh, and you should not have defaulted with any nationalized bank, financial institution or cooperative bank. Anyone who has already received assistance under another subsidy-linked government scheme cannot apply.
How much funding does MEGP provide?
Banks sanction between 90% and 95% of the project cost as a loan. For a manufacturing unit at the full ₹15 lakh project ceiling, that means a maximum loan of ₹14.25 lakh; service and business projects are capped at ₹5 lakh, so the loan scales down accordingly. On top of the loan, a government subsidy of 25% of the project cost, capped at ₹2.5 lakh, is credited to the beneficiary — held in a Term Deposit Receipt for three years before being adjusted against the loan account.
How much of the project cost do I have to fund myself?
The promoter's contribution is 10% of the project cost for general category applicants and 5% for special category applicants such as SC, ST, BC, MBC, minorities, women, differently-abled persons, transgender persons and ex-servicemen.
Is collateral or security required for the loan?
No. MEGP facilitates collateral-free advances to eligible entrepreneurs under the Credit Guarantee Trust for Micro, Small Enterprises (CGTMSE), so you are not expected to pledge assets to secure the bank loan.
Does MEGP take equity in my business?
No. MEGP is a debt scheme — the support comes as a bank loan plus a government subsidy. Neither the bank nor the state government takes a stake in your enterprise, so ownership remains entirely with you.
Is there a last date to apply for MEGP?
There is no fixed deadline. The scheme runs on a rolling, always-open basis and applications are submitted online through the state MSME portal. District Industries Centres place the applications they receive before the Task Force Committee at least once a month, so when you apply mainly affects how quickly your file moves forward.
How are MEGP beneficiaries selected?
Applications received by the District Industries Centre are scrutinised and then placed before the Task Force Committee at least once a month. Selection depends on the applicant's experience, educational qualification and skill set, as well as the viability and marketability of the proposed project. Shortlisted applicants are called for personal interviews at the financing bank branch, which then issues a provisional sanction based on techno-economic viability.
What training and marketing support comes with the scheme?
A two-day Entrepreneur Development Programme conducted by the Entrepreneur Development Institute of the Government of Tamil Nadu is mandatory for beneficiaries, and it equips them with the basics of running an enterprise. Marketing support is also provided — District Industries Centres arrange exhibitions and buyer-seller meets, in coordination with other programmes, to help MEGP units sell their products.
How and where do I apply for MEGP?
Applications are made online through the official website of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu. Click "Apply Online" and then "New Application", and register with details such as your name, date of birth, email ID, Aadhaar number and mobile number. Once registration is complete, log in, fill in all the mandatory fields of the application form, upload the necessary documents and submit it online.
Is DPIIT recognition required for MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees, though having it can strengthen your application and unlock other benefits.
Who offers MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees?
MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees is offered by Commissionerate of Industries and Commerce, Government of Tamil Nadu, a government body. It is provided as non-dilutive funding.
How do I apply for MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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