35% · max ₹1.5 crore
Capital subsidy
Capital subsidy of 35% of the Eligible Project Cost, subject to a maximum subsidy of ₹1.5 crore. The ₹1.5 crore figure is the ceiling on the subsidy, not a limit on the total project cost.
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Annal Ambedkar Business Champions Scheme (AABCS)
Loanus Guided
Loanus has organized and summarized information from the official Government sources shown on this page. This is general scheme information, not a personalized eligibility decision.
About this scheme
Annal Ambedkar Business Champions Scheme (AABCS)
Suitable for Scheduled Caste and Scheduled Tribe entrepreneurs in Tamil Nadu who are starting a new enterprise or expanding an existing enterprise, subject to the scheme's eligibility conditions. [1][2]
Benefits available under this scheme
6%
Interest subvention
Interest subvention of 6% on loans sanctioned under AABCS. For term loans, the interest subvention applies during the loan tenure, not exceeding 10 years. Working capital sanctioned for the project is eligible for interest subvention for up to 2 years.
[1][2]Illustrative example
If the Eligible Project Cost used for the scheme's subsidy calculation were ₹1 crore, 35% would be ₹35 lakh, which is below the ₹1.5 crore subsidy ceiling. Separately, if a loan is sanctioned under AABCS, the scheme provides 6% interest subvention. For term loans this applies during the loan tenure, up to 10 years; working capital is eligible for up to 2 years. This is an illustration only, not an eligibility, loan-sanction or subsidy-sanction decision. [1][2]
Eligibility
These are general scheme eligibility conditions. They do not confirm whether you personally qualify.
General eligibility
- The scheme is for persons belonging to Scheduled Caste and Scheduled Tribe communities. [1]
- The enterprise must be 100% owned by persons from Scheduled Caste or Scheduled Tribe communities. [1][2]
- Sole proprietorships, partnerships and companies are covered. [1]
- Both new and existing entrepreneurs are covered, for new enterprises and for the expansion of existing enterprises. [1][2]
- Manufacturing and service enterprises are covered. Trading-related projects above the assistance threshold of the existing Unemployed Youth Employment Generation Programme (UYEGP) are also covered. [1][2]
- The maximum age limit is 55 years. [1][2]
- No minimum educational qualification is required. [1][2]
Documents needed
Loanus does not currently display a governed document checklist for this scheme. Check the official application portal for the latest document requirements.
How to apply
- 1
Online application through the AABCS portal
The official scheme page states that applications are filed online only, through the AABCS portal on msmeonline.tn.gov.in.
[2]
Application deadline
No deadline is stated in the sources Loanus currently holds.
Important things to know
A few practical scheme details that may matter while you plan or apply.
- The Eligible Project Cost covers capital investment such as land, plant, machinery, testing equipment and computing devices. Land cost may be included but cannot exceed 20% of the total project cost. Vehicles are eligible only where they are integral to the business process. [1][2]
- Eligible lenders include scheduled commercial banks, cooperative banks, the Tamil Nadu Industrial Investment Corporation (TIIC) and NBFCs. [1]
- For credit-linked projects, the capital subsidy is front-ended to the extent required for margin money. Projects without credit linkage are also covered; for them the capital subsidy is back-ended. [1][2]
- Beneficiaries are not barred from claiming additional capital subsidy under schemes operated by agencies not controlled by the Government of Tamil Nadu. [1][2]
- Entrepreneurship Development Training is provided to all beneficiaries. [1]
- The Government Order gives effect to the scheme from 01.04.2023, retrospectively. [1]
Sources
- [1]G.O.(Ms.) No.33, Micro, Small and Medium Enterprises (D2) Department, dated 12.05.2023
English · 1 Oct 2026
Open official link - [2]Annal Ambedkar Business Champions Scheme (AABCS)
English · 1 Oct 2026