The Prime Minister Employment Generation Programme is a Government of India-backed credit linked subsidy scheme. Under this scheme, beneficiaries can get a subsidy amounting to 15-35% of the project cost from the government. PMEGP is an initiative of the Ministry of Micro, Small and Medium Enterprises and is implemented at a national level by Khadi and Village Industries Commission (KVIC). As an entrepreneur, PMEGP can give you the financial assistance required to set up a new project. Read on to know more about the PMEGP scheme.
Objectives
1. To produce employment opportunities in both urban and rural areas in India through the establishment of new self-employment projects, micro-enterprises and ventures.
2. To facilitate self-employment opportunities for widely dispersed traditional artisans/ unemployed rural and urban youth to the degree feasible, at their location.
3. To generate sustainable and continuous employment to rural and unemployed youth as well as prospective and traditional artisans and thereby halt rural youth from migrating to urban areas.
4. To boost artisan’s income-earning capacity and spur the growth rate of both rural as well as urban employment.
What are the documents required for PMEGP loan?
Here are some documents you may need to produce when applying for the PMEGP loan scheme:
- Aadhaar card
- PAN card
- Project report
- Caste certificate
- Special category certificate, if required
- Rural area certificate
- Education/ skill development training/ EDP certificate
- Authorization letter
Nature of assistance
- The maximum cost of the project/unit admissible in manufacturing sector is ₹ 25 lakhs and in the business/service sector, it is ₹ 10 lakhs.
- Categories of Beneficiary’s Rate of subsidy under PMEGP (of project cost)
- Area (location of project/unit) General category 15 % (Urban), 25%(Rural), Special 25%(Urban), 35%(Rural) (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.)
- The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.
Who can apply?
Any individual, above 18 years of age. At least VIII
standard pass for projects costing above Rs.10 lakh in the manufacturing sector
and above Rs. 5 lakh in the business / service sector. Only new projects are
considered for sanction under PMEGP. Self Help Groups (including those
belonging to BPL provided that they have not availed benefits under any other
Scheme), Institutions registered under Societies Registration Act, 1860;
Production Co-operative Societies, and Charitable Trusts are also eligible.
Existing Units (under PMRY, REGP or any other scheme of Government of India or
State Government) and the units that have already availed Government Subsidy
under any other scheme of Government of India or State Government are NOT
eligible.
How to apply?
The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desirous of establishing the enterprise/ starting of service units under PMEGP.
The beneficiaries can also submit their application online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp and take the printout of the application and submit the same to respective offices along with Detailed Project Report and other required documents.
How much subsidy can you get through the PMEGP loan scheme?
| Beneficiary Categories | Beneficiary’s Share | Subsidy Rate – Urban | Subsidy Rate – Rural |
| General | 10% | 15% | 25% |
| Special | 5% | 25% | 35% |
What is the PMEGP loan limit?
The PMEGP loan limit is from Rs. 9.5 to Rs.23.75 lakh. The maximum project cost for the manufacturing sector is capped at Rs.25 lakh and capped at Rs.10 lakh for the business/ service sector. The beneficiary makes a 5 to 10% contribution and the bank sanctions the remaining 90 to 95%.In actuality, your bank credit will amount to only 60% to 75% of the project’s cost as you receive the remaining 15 to 35% as margin money through the PMEGP scheme. Banks provide the balance amount of the project’s cost as a term loan.
FundsTiger can arrange loans from almost all the banks. You can apply for an attractive offer with best possible rate of interest and terms for Personal Loan, Business Loan , Home Loan and Car Refinance Loan.