Migrants Employment Generation Programme (MEGP)
By Commissionerate of Industries and Commerce, Government of Tamil Nadu
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Quick Answer
A Tamil Nadu government scheme offering subsidized bank loans up to ₹14.25 lakhs and a maximum subsidy of ₹2.5 lakhs for migrant returnees to establish micro-enterprises.
- Funding amount
- Up to ₹1.43 Cr
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Tamil Nadu
About this loan
The Government of Tamil Nadu launched the “Migrants Employment Generation Programme (MEGP)” to support Non-Resident Tamils who returned to the state due to the Covid-19 pandemic. This scheme aims to tap the potential of these skilled returnees by facilitating their transition into small-scale entrepreneurs, thereby mitigating unemployment and fostering self-employment. MEGP supports the establishment of micro-enterprises in the Manufacturing, Service, and Business sectors across both rural and urban areas of Tamil Nadu.
The program's objectives include generating employment opportunities for migrant returnees, providing livelihood opportunities to those who lost jobs due to Covid-19, and facilitating collateral-free advances under the Credit Guarantee Trust for Micro, Small Enterprises (CGTMSE). It is implemented by the Commissionerate of Industries and Commerce and the Commissionerate of Non-Resident Tamils, with support from District Industries Centres (DICs) at the local level. The scheme also includes mandatory entrepreneurship development training and marketing support.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
Benefits & Funding
- Amount
- Up to ₹1.43 Cr
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
- Financial Assistance: Access to bank loans covering 90-95% of the project cost, with a maximum loan amount of ₹14.25 lakhs for manufacturing units (based on a ₹15 lakh project). For service and business sectors, the maximum project cost is ₹5 lakhs, with corresponding loan support.
- Government Subsidy: A subsidy of 25% of the project cost, capped at ₹2.5 lakhs, is provided to beneficiaries. This subsidy is deposited into a Term Deposit Receipt (TDR) for 3 years and subsequently credited to the borrower's loan account. No interest is charged on the loan amount equivalent to the subsidy.
- Collateral-Free Loans: The scheme facilitates the provision of collateral-free advances to eligible entrepreneurs under the Credit Guarantee Trust for Micro, Small Enterprises (CGTMSE).
- Repayment Terms: Beneficiaries benefit from a structured repayment schedule of 5 years after an initial moratorium period of 6 months or the date of project commencement, whichever is earlier.
- Entrepreneurship Training: Mandatory two-day "Entrepreneur Development Programme" training is conducted by the Entrepreneur Development Institute (EDI) of the Government of Tamil Nadu, equipping entrepreneurs with necessary skills.
- Marketing Support: Assistance is provided for marketing products from MEGP units through organized exhibitions and buyer-seller meets, arranged by District Industries Centres in coordination with other programs.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications received by District Industries Centres will be scrutinized and then placed before the Task Force Committee at least once a month. The selection of beneficiaries will be based on criteria such as the applicant's experience, educational qualification, skill set, the viability of the proposed project, and its marketability. Shortlisted applicants will be invited for personal interviews by the financing bank branches, which will subsequently issue provisional sanctions based on techno-economic viability.
Application Process
- 1
Register Online
Create an account on the MSME Department portal by providing personal and contact details, including Aadhaar and mobile number.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
Submit on the official portal
Use the official application link and verify all details before final submission.
- 3
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
Who is eligible for the MEGP scheme?
The scheme is open to Non-Resident Tamils who returned to Tamil Nadu on or after January 1, 2020, due to the Covid-19 pandemic. Applicants must be between 18 and 45 years (general category) or up to 55 years (special categories), have passed 8th standard, and have a family income below ₹5.00 lakh. Applicants should not be loan defaulters or beneficiaries of other subsidy-linked schemes.
What is the maximum financial assistance available?
The maximum project cost covered is ₹15 lakhs for manufacturing and ₹5 lakhs for service and business sectors. Banks will sanction 90-95% of the project cost as a loan. Additionally, a government subsidy of up to ₹2.5 lakhs is available, adjusted against the loan amount.
Is collateral required for the loan?
No, collateral is not required. The scheme facilitates collateral-free advances under the Credit Guarantee Trust for Micro, Small Enterprises (CGTMSE).
Are there any specific requirements for the applicant's contribution?
Yes, applicants from the general category must contribute 10% of the project cost, while those from special categories (SC/ST/BC/MBC/Minorities/Women/Physically Challenged/Transgender/Ex-servicemen) need to contribute 5%.
What kind of support does the MEGP scheme provide beyond financial aid?
Beyond loans and subsidies, the scheme mandates a two-day "Entrepreneur Development Programme" training by the Entrepreneur Development Institute and provides marketing support through exhibitions and buyer-seller meets to promote products from MEGP units.
What happens if I have previously received assistance from other government schemes?
A person who has already been assisted under other subsidy-linked Government schemes would not be eligible under this MEGP scheme.
