MEGP Tamil Nadu — Loans up to ₹14.25 Lakh for Migrant Returnees — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.