PMEGP
Prime Minister Employment Generation Programme
The Prime Minister Employment Generation Programme (PMEGP) is a central government notified scheme to generate the maximum employment in private sector by establishment of new units under Service Sector and Manufacturing Sector. In this scheme government forward newly establishment units loan files through it’s nodal agencies KVIC, KVIB & DIC to applicant’s preferred bank. After completion of own due diligence the bank is give a finance under this scheme in nature of term loan and/or Cash Credit limit.
The scheme is empozered by Ministry of Micro, Small and Medium Enterprises (MSME).
Object of PMEGP Scheme:
The main core object to the scheme is to improve employment in rural and urban areas by encourage entrepreneurship to setup a new units of manufacturing and service. The main object is also showing in the name of the scheme i.e. “Employment Generation.”
Who is eligible under this scheme?
Applicant Category |
Subsidy in case of unit established in Urban Area |
Subsidy in case of unit established in Rural Area |
Self Contribution in Project Cost |
GENERAL |
15% |
25% |
10% |
OBC,
ST, SC etc. |
25% |
35% |
5% |
How much loan you can get under PMEGP?
(a) In case of manufacturing unit you may get finance upto 23.75 lakh (if OBC, ST, SC, category) and upto Rs. 22.50 Lakh if you are in general category.
(b) In case of Service Sector unit you may get finance upto Rs. 9.5 lakh (if OBC, ST,SC category) and upto 9 lakh if you falls under general category.
Condition To Get Subsidy Under PMEGP:
The main condition to get the subsidy under PMEGP is the business must be run upto 3 years after it’s commencement of business and after successfully run the business continue for the period of 3 year and providing the prescribe number of employment under your enterprises as per your sanctioned finance the Subsidy amount will be adjusted against your loan outstanding amount.
Documents required for application under PMEGP scheme:
- Aadhar Card
- Pan Card, Photo of applicant
- Project report
- Cast certificate for OBC, ST, SC candidates
- Popullation certificate if unit starting in rural area
- Ration card for showing number of dependents on applicant
- Last three years ITR (if available)
- Personal insurance (if any)
- Income Tax Return (if available)
Eligibility For Loan Under PMEGP Scheme:
- Step 1
Any Individual having minimum age of 18 year - Step 2
The applicant must have minimum 8th class education for a project cost of Rs. 10 for Manufacturing unit and Rs. 5 Lakh for Service unit. - Step 3
Any registered society registered - Step 4
Self-help group of persons - Step 5
Charitable trust