PMEGP – Pradhan Mantri Employment Generation Program

The Prime Minister’s Employment Generation Programme (PMEGP) is a scheme offered to provide financial assistance to those who wish to set up new enterprises under the programme. The nodal agency responsible for the implementation of the scheme at the national level is the Khadi and Village Industries Commission (KVIC).

Under the PMEGP scheme, by investing only 5% to 10% of the total project cost, beneficiaries can avail a subsidy of up to 35%. 

OBJECTIVES OF PMEGP

The PMEGP project has the following objectives –

  • To generate employment opportunities in both urban and rural areas in India through the establishment of new self employment projects, micro enterprises and ventures.
  • To take steps to prevent migration of rural people to cities to seek employment by giving them stable and sustainable employment.
  • To raise artisans’ wage-earning capacity while contributing to the raise in the growth rate of both urban as well as rural employment.

ELIGIBILITY CRITERIA FOR PMEGP –

The eligibility criteria to apply for this scheme is listed as-

  1. Applicant must be atleast 18 years of age.
  2. Must have completed at least VIII standard (for those seeking funding in excess of Rs.5 lakh in the service/business sector and more than Rs.10 lakh in the manufacturing sector)
  3. Self-help groups not availing the benefits of any other social welfare scheme.
  4. Charitable trusts
  5. Societies that are registered under Societies Registration Act, 1860
  6. Production Co-operative Societies

SUBSIDY AVAILABLE UNDER PMEGP

Under the PMEGP project, beneficiaries are required to pay a minimum portion for the project cost and avail subsidy on loan taken from the banks linked with the scheme. The subsidy is decided based on the category and area to which the applicant belongs. These rates are as-

Beneficiary Categories Beneficiary’s share (Total project) Subsidy Rate (Urban) Subsidy Rate

(Rural)

GENERAL 10% 15% 25%
SPECIAL 5% 25% 35%

 

PMEGP LOAN INTEREST RATE

The interest rate and subsidy offered under the PMEGP scheme from various financial institutions shall vary from bank to bank and will depend upon applicant’s profile, business stability and project cost. Generally, the interest rates under  this scheme range from 11% to 12% per annum. 

QUANTUM OF LOAN

The maximum amount of the unit/project that is permitted in the manufacturing sector is limited to Rs.25 lakh, while the limit for the service/business sector is set at Rs.10 lakh.The loan tenure ranges from 3 years to 7 years.

***Due to the current pandemic situation, the PMEGP loan providing banks have offered a moratorium period of 6 months on all loans taken under the PMEGP scheme.

DOCUMENTS REQUIRED TO APPLY FOR PMEGP

The following documents are required to be submitted to apply for this scheme-

  • Caste certificate
  • Aadhaar Card
  • PAN card
  • Project Report
  • Special category certificate
  • Certificate of Entrepreneur Development Programme (EDP) training
  • Rural area certificate
  • Registration certificate, authorisation letter and certificate for special category when required, for institutions

 

The applicant can apply for PMEGP scheme either by filling the application form online at the official website of PMEGP or by submitting the form by visiting the office.

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