Entrepreneur Development Scheme – EDS India is increasingly heading towards an ecosystem of startups. Therefore, the Government establishes a whole ministry devotes to support new companies and to promote entrepreneurship. So, by launching several schemes to encourage entrepreneurship. The TIIC government steps forwards to take specific initiatives.
Overview: Entrepreneur Development Scheme (EDS)
The Tamil Nadu Government launches a measure name as the Entrepreneur Development Scheme. To promote and educate people from economically, socially denied backgrounds to continue their enterprises. Further, the EDS scheme supports entrepreneurship in the state. As a measure to promote and cultivate budding talents.
Tamil Nadu Industrial Investment Corporation Limited (TIIC) commits with the duty of managing and executing the scheme. Also in the EDS scheme, the Government of Tamil Nadu provides financial assistance to young entrepreneurs and professionals.
Need for EDS for entrepreneurs
EDS scheme is an efficient way of developing entrepreneurs who can help accelerate the speed of socio-economic development. Also, healthy regional growth and leverage the resources available locally.
Let’s see why its entrepreneurs require the EDS scheme :
Firstly, recognize the need for entrepreneurial discipline in which entrepreneurs build a sense of responsibility. Although most entrepreneurs hold well-qualifications, they lack the discipline essential to start a business.
Secondly, to help entrepreneurs decide and independently focus on the goals of their companies. Therefore, over time a company begins and expands and proceeds to hit milestones over time. Generally speaking, the power to work alone comes from discipline. Also, the training helps to identify the interest of the people. Including to build a community of high-professionals for business objectives.
Importantly develop worship of integrity to achieve business goals. Once the objectives sets, it is time to work hard to achieve the goals. Equally, it is a desire to stay honest in the business objectives that serve as a healthy business environment.
Generate a broad view of the industry, competition, and the latest trends. Therefore, entrepreneurs need to understand the industry in which they operate. Next up is the competition that grows over time. Also, new competitors continue to enter the industry, and each competition starts a new trend.
He is improving entrepreneurial management skills. The entrepreneur should be the manager. Therefore, he/she must know how to lead the team. Also, he/she must adapt the ability to motivate members of his team and set examples of appreciation.
Purpose of the Entrepreneur Development Scheme
Entrepreneur Development Scheme in the limelight with the clear goal of promoting entrepreneurship. That is among people from an economically and socially backwards who want to promote their own business. Also, I want to generate income and lead a life of dignity.
The eligibility criteria for Entrepreneur Development Scheme in detail. Read the following:
- First-generation entrepreneurs
- Also, in this scheme, the entrepreneurs engage in the development process, operation, and value-add activity are target groups
- The promoters must require knowledge and also experience in the appropriate line of the prospective business
- Existing small-scale units that need additional machinery assistance / and also need additional working capital
- Individuals with no assets to back up but possessing proper skills and expertise to execute a successful project.
Documents Required for Entrepreneur Development Scheme – EDS
The documentation for the Entrepreneurship Development Scheme is:
- Businessman’s memorandum
- Solid Registration Certificate
- Deed of partnership
- Memorandum and Organizational Documents
- Certificate of Consolidation in the case of Companies
- A copy of the rules of the Bye in case the Association
- Bio-Data and also Net-value Statement in respect of each promoter, directors, and verifiers
- Necessary Certificate in Education and Technology
- Compliance Documents KYC
- Details of Joint Concerns
- Copies of the Spreadsheet Balance Sheet and Profit & Loss Account of the relevant assets and schedules for the past three years
- Research Sheet Sheet
- Copy of Rental Deed or Purchase Agreement
- Commercial Deed, Parental Documents, Patta, Chitta, Adangal, Tax Receipt and also FMB Sketch
- Certificate of Incorporation
- Approved building plan
- NOC / Permission Order from the Pollution Control Board
- Licenses such as drug license / EPCG license
- Bonds on the market
Steps for EDS Scheme Application
Step by step, the application procedure for the Entrepreneur Development Scheme (EDS) is here :
Step 1: Firstly, the entrepreneurs require to apply in the format of the application form for the Entrepreneur Development Scheme.
Also, the EDS application form can is available for download from the Head Office. Therefore, even, you can visit the Branch Offices of the Company, or from the official TTIC website. Also, from the home page, choose the option to download the application form under the scheme.
Step 2: Secondly, fill the application form with the complete details. After that, apply to the Head Office or Branch Office of Tamil Nadu Industrial Investment Corporation Limited (TIIC).
Step 3:After that Legal authority examines the application. Also, the committee reviews the application for a loan and advises legal authority sanction.
Step 4: The authority does value the project both technically and economically, with the approved project cost of TIIC.
However, after deposit of promoter participation by the applicant and receipt of the subsidy claim. Thereafter the loan releases to the applicant account.
Maximum Loan Limit under Entrepreneur Development Scheme – EDS
The assistance under the TIIC Entrepreneur Development Scheme :
- The least loan limit under this scheme is Rs.50,000 and also
- The maximum loan help is Rs.5 lakhs or 30 times on the net salary. That is of the two guarantors whichever is lower.
The promoter’s contribution is available at a minimum of 10% on the project cost.
The repayment fix within a maximum of 60 months. Including a maximum moratorium period of 6 months. Also, the repayment fixes base on the cash flow and future life of the machine. Therefore, for business buying electronic items, the repayment is for three years.
Collateral Security requirement
The third-party guarantee gets as under:
- For loans up to Rs.2.00 lakhs – from 1 person
- For loans above Rs.2.00 lakhs – from 2 persons
In conclusion, the TIIC introduces Entrepreneur Development Scheme to help the youth of the country. Therefore, the loan provides some activities only. Restricts some of the activities in the EDS scheme like Group Loans that are Loans to Self Help Groups. Also, Wholesale and Retail Trading or Educational and Training Institutions are not eligible.
Note: If the beneficiaries, Spouse, Children hold the immovable property, therefore, he/ she is not eligible under this scheme.
For more details do visit TIIC official website.