The Entrepreneur Development Scheme (EDS) is a government initiative aimed at promoting entrepreneurship and self-employment by providing financial assistance, skill development, and support services to budding entrepreneurs. The scheme is designed to encourage individuals, especially from weaker sections, to start their own businesses and generate employment opportunities.
Objectives of the Entrepreneur Development Scheme
- Promote Self-Employment: Encourage individuals to become entrepreneurs by starting their own businesses.
- Financial Assistance: Provide loans and subsidies to help entrepreneurs establish or expand their ventures.
- Skill Development: Offer training programs to enhance entrepreneurial skills.
- Support Small & Medium Enterprises (SMEs): Foster the growth of MSMEs by providing access to financial resources.
- Empower Women and Youth: Promote women entrepreneurs and empower the youth through financial support and skill training.
Key Features of the Scheme
- Loan Assistance: Entrepreneurs can avail loans with subsidized interest rates.
- Skill Training: Government agencies or approved training institutes conduct entrepreneurship development programs (EDP).
- Subsidy or Grant: In some cases, the scheme offers a capital subsidy to reduce the financial burden.
- Credit Guarantee: Some versions of the scheme provide a credit guarantee to reduce the risk for financial institutions.
- Mentorship & Support: Entrepreneurs receive mentoring, advisory services, and assistance in business planning.
Eligibility Criteria
Eligibility criteria for transport loan under the Entrepreneur Development Scheme are explained as follows:
- For transport loan cases, assistance under these schemes will be considered only for Owner Drive category that is the entrepreneur should have a valid license with a badge for auto and tourist taxi support for the purchase of tourist taxies
- Loan/Assistance for subsequent vehicles to the same person will be considered as Non-owner driven category
- For small-scale industrial units requiring load vehicles, assistance will be provided under Non-owner driven category
- The vehicle should be registered as a Private Vehicle in the name of the applicant unit
Non-Eligibility
Loan advances to the following activities will not be considered under the Entrepreneur Development Scheme.
- Educational and Training Institutions (including professionals & computers in any form
- Group Loans such as Loans to Self Help Groups
- Wholesale and Retail Trading
Application Registration Fees
| Sl.No | Loan Detail | Registration Fees |
| 1 | Loans processed by Branch Sanction Committee (BSC) | Rs.10000 |
| 2 | Loan granted by Regional Level Sanction Committee (RLSC) | Rs.10 Lakhs |
| 3 | Loan by EC / Board at Head Office | Rs.50000 |
Quantum of Assistance
The assistance under the Entrepreneur Development Scheme is given here:
The minimum loan limit under this scheme will be Rs.50000. The maximum loan assistance will be Rs.5 lakhs or 30 times on the net salary of the two guarantors whichever is lower.
Composite loan
The term and working capital loan will be sanctioned as a composite loan as a maximum of Rs.5.00 lakhs. Working capital will be sanctioned to units not exceeding the term loan amount or Rs.50, 000 whichever is higher.
Working capital to Artisans under this Entrepreneur Development Scheme is Rs.50,000.It will be granted with the proper assessment
Margin Money
The promoter’s contribution will be a minimum of 10% on the project cost.
Project Processing fee
The pre-operative expenses payable by a promoter such as a processing fee will be included in the project cost. However, the promoter needs to pay 1% on the loan amount initially and 0.5% on the loan amount sanctioned at the beginning of every year as the Risk Coverage Fund as the Corporation bears the entire risk.
Repayment Details
The repayment will be fixed between two and five years with a moratorium of three to six months. The repayment will be fixed based on the cash flow and future life of the equipment. For business purchasing electronic items, the repayment will be for three years.
Rate of Interest
The interest for Entrepreneur Development Scheme will be charged on the compound basis at a monthly rest, besides the penal interest of 2.5% on the defaulted EMI for the defaulted period.
The details of the rate of interest are given in this document:
Security
Primary assets scan be mortgaged or hypothecated to Tamil Nadu Industrial Investment Corporation Limited. In case of loan is applied for expansion of unit, the charge on the existing assets will be extended.
Guarantee
Third party guarantee will be obtained for assistance under as Entrepreneur Development Scheme. The eligibility criteria for guarantors are given here:
- For loans up to Rs.2.00 lakhs, the party guarantee will be obtained from one person
- For loans above Rs.2.00 lakhs, the party guarantee will be obtained from two persons
Guarantors Eligibility In case of Employee
- The guarantors should be an employee of Central, State Government or Government undertakings or Public Sector Banks, Financial Institutions or any other organisations established by Central, State Government inclusive of Co-operative Societies and educational institution established by Central and State Government.
- The guarantor’s age should be below fifty years.
Guarantors Eligibility In case of Land Owner
- The guarantor should have land and building worth equal to or more than two times of the loan amount. Note: The Tamil Nadu Industrial Investment Corporation Limited (TIIC) official will assess Value of the property.
- The guarantor’s age should be below sixty years.
Documents Required
- Entrepreneur’s Memorandum
- Firm Registration Certificate
- Partnership Deed
- Memorandum & Articles of Association
- Certificate of Incorporation in case of Companies
- Copy of Bye-laws in case of Society
- Bio-Data and Net-worth Statement in respect of each of the promoters, Directors and Guarantors
- Important Educational and Technical Experience Certificate
- Documents for KYC Compliance
- Details of the Associate Concerns
- Copies of Audit Balance Sheet and Profit & Loss Account for the associate concern along with schedules for the last three years
- Audited Balance Sheet
- Copy of Lease Deed or Purchase Agreement
- Sale Deed, Parent Documents, Patta, Chitta, Adangal, Tax Receipt, FMB Sketch
- Encumbrance Certificate
- Approved Building Plan
- NOC / Consent Order from the Pollution Control Board
- Licenses like Drug License / EPCG License
- Market tie-up letters
Entrepreneur Development Scheme Application Procedure
Step 1: The entrepreneurs need to apply in the prescribed application form for Entrepreneur Development Scheme.
The application form for EDS scheme can be obtained from the Head Office or Branch Offices of the Corporation, or you can also download the application form from official website of TTIC.From the home page select Application form download option under the scheme.
Step 2: Fill the application form with the following details and apply to the Head Office or Branch Office of Tamil Nadu Industrial Investment Corporation Limited.
Step 3: The concerned authority will scrutinise the application. The committee will examine the application for a loan and recommend concerned authority sanction.
Step 4: The authority will appraise the project both technically and economically with the approved project cost of TIIC.
After deposit of promoter contribution by the applicant and receipt of subsidy claim, the loan will be released to the applicant account
FAQs
Financial Assistance & Benefits?
Loan amount: Ranges from ₹50,000 to ₹25 lakhs, depending on the business nature.
Interest subsidy: Lower interest rates compared to regular business loans.
Repayment tenure: Flexible repayment options, usually ranging from 3 to 7 years.
Collateral-free loans: In some cases, loans up to a certain limit are provided without collateral under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Popular State-Specific Entrepreneur Development Schemes?
Jharkhand: Jharkhand State Entrepreneur Development Scheme (JSEDS) – Offers financial assistance to entrepreneurs.
Tamil Nadu: Entrepreneur Development Scheme (EDS) by TIIC – Provides term loans at 6.5% interest.
Kerala: Kerala State Entrepreneur Development Mission (KSEDM) – Offers loans up to ₹10 lakhs with 3% interest subsidy.
Haryana: Entrepreneur Development Programme – Provides loans to micro-enterprises with interest subsidies.