AABCS gives Tamil Nadu SC/ST entrepreneurs a 35% capital subsidy on the project cost, up to ₹1.5 crore, plus a 6% interest subvention on machinery loans for up to 10 years. Land counts up to 20% of cost. Check your subsidy, loan and EMI below. Free, no login.
AABCS Calculator: 35% Subsidy, 6% Interest Subvention & EMI
Enter your project cost. See if you qualify, your capital subsidy, how much the state pays toward interest, your own share, bank loan and EMI. அண்ணல் அம்பேத்கர் தொழில் முன்னோடிகள் திட்டம்: உங்கள் மானியத்தை உடனே பாருங்கள்.
Free estimate, not an approval. AABCS (Annal Ambedkar Business Champions Scheme), Government of Tamil Nadu, MSME Department, G.O.(Ms) No.33 of 12.05.2023. 35% capital subsidy on the eligible project cost, max ₹1.5 crore; land counted up to 20% of project cost; 6% interest subvention on machinery and equipment loans for up to 10 years, paid upfront to the bank; for SC/ST entrepreneurs aged up to 55, enterprise 100% SC/ST owned (msmetamilnadu.tn.gov.in/aabcs.php). Rules verified on 11 Oct 2026.
Example: ₹1.2 crore manufacturing unit
An SC entrepreneur, 35, sets up a new unit near Hosur: land ₹10 lakh, shed ₹25 lakh, machinery ₹80 lakh, testing equipment ₹5 lakh. Eligible cost ₹1.2 crore, so the subsidy is 35% = ₹42 lakh. With a 10% bank margin (₹12 lakh) met from the front-end subsidy, own money can be ₹0 and the loan is ₹1.08 crore; ₹30 lakh of subsidy follows later. At 10% for 7 years the EMI is about ₹1,79,293 without subvention and ₹1,56,860 with it (the ₹76.5 lakh machinery part at 4%). The state pays about ₹4.3 lakh of interest in year 1 and ₹17 lakh in all.
AABCS rules at a glance
| Rule | |
|---|---|
| Run by | MSME Department, Government of Tamil Nadu (via District Industries Centres) |
| Capital subsidy | 35% of eligible project cost, max ₹1.5 crore |
| Eligible cost | Land, building, plant & machinery, testing equipment, computers; vehicles only if core to the business |
| Land limit | Up to 20% of project cost |
| Building limit | Up to 25% of project cost (Tamil scheme page) |
| Interest subvention | 6% on machinery & equipment loans, up to 10 years, paid upfront to the bank |
| Working capital | 6% subvention for up to 2 years |
| Margin money | Subsidy released front-end to meet the bank margin; back-end if there is no loan |
| Lenders | Scheduled commercial banks, cooperative banks, TIIC, NBFCs |
| Age | Up to 55 years; no minimum education |
| Ownership | 100% SC/ST owned |
| Activities | Manufacturing, services; trading only above the UYEGP limit |
Who can apply
- A resident of Tamil Nadu from a Scheduled Caste or Scheduled Tribe community.
- Up to 55 years old when applying. No minimum educational qualification.
- The enterprise is 100% owned by SC/ST persons: proprietorship, partnership or company.
- A new enterprise, or the expansion of an existing one.
- Manufacturing or service. Trading only for projects above the UYEGP limit.
Documents
- Community certificate (SC/ST)
- Aadhaar, PAN and proof of Tamil Nadu residence
- Detailed project report with cost break-up
- Quotations for machinery and equipment; land and building documents if included
- Partnership deed or company incorporation papers showing 100% SC/ST ownership (if not a proprietorship)
- Bank account details and photograph
How to apply
- Prepare a project report and get quotations for machinery and equipment (see our project report tool).
- Register and apply online at msmeonline.tn.gov.in/aabcs. Applications are accepted online only.
- Upload your community certificate, Aadhaar, residence proof, project report and quotations.
- The District Industries Centre (DIC) checks the application and forwards it to a bank, TIIC or NBFC for the loan.
- After the loan is sanctioned, the subsidy is released front-end as your margin money; any balance and the 6% subvention follow the scheme rules.
Apply online: msmeonline.tn.gov.in/aabcs. Scheme details: msmetamilnadu.tn.gov.in/aabcs.php (Tamil: aabcs-tamil.php). For help, contact the General Manager, District Industries Centre (DIC) of your district.
Frequently asked questions
What is the AABCS scheme? The Annal Ambedkar Business Champions Scheme is a Tamil Nadu Government scheme from 2023-24 for SC/ST entrepreneurs. It gives a 35% capital subsidy on the eligible project cost (up to ₹1.5 crore) and a 6% interest subvention on machinery loans for up to 10 years.
What is the maximum loan amount under AABCS? The scheme does not fix a loan limit. It caps the subsidy at ₹1.5 crore, which is 35% of an eligible project cost of about ₹4.29 crore. The bank decides the loan amount based on your project report.
How much margin money do I need for AABCS? The subsidy is released front-end to meet the bank’s margin requirement. If your bank asks for 10% margin and your subsidy is larger than that, your own contribution can be close to zero. Ask your bank and District Industries Centre (DIC) what they require.
Who is eligible for AABCS? Tamil Nadu residents from SC or ST communities, up to 55 years of age, with no minimum education. The enterprise must be 100% owned by SC/ST persons and can be a proprietorship, partnership or company.
Can an existing business apply? Yes, for expansion. The scheme covers new enterprises and the expansion of existing ones. Only the cost of the new expansion counts, not assets you already own.
Is trading business allowed under AABCS? Yes, but only trading projects above the limit of the UYEGP scheme. Smaller trading units should look at UYEGP. Check the current limit with your District Industries Centre (DIC).
How is the 6% interest subvention paid? Upfront to the bank. You pay interest 6 points lower on the loan used for machinery and equipment, for up to 10 years. Working capital gets the subvention for up to 2 years.
Sources: Tamil Nadu MSME Department, AABCS scheme pages (msmetamilnadu.tn.gov.in/aabcs.php and aabcs-tamil.php); AABCS portal msmeonline.tn.gov.in/aabcs (scheme description, G.O.(Ms) No.33, MSME (D2) Department, 12.05.2023); ICDIC scheme page (icdic.tn.gov.in/schemes/aabcs); Chengalpattu district page (chengalpattu.nic.in). Rules verified on 11 Oct 2026.
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