The scheme is implemented by the Khadi and Village Industries Commission (KVIC), which serves as the national nodal agency.
The scheme is implemented at the state level by State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks.
In such cases, KVIC routes government subsidies through designated banks for eventual disbursement directly into the bank accounts of the beneficiaries/entrepreneurs.
Read More About: How to Apply PMEGP Loan? (Step-by-Step Process)
The PMEGP scheme incorporates two previous schemes, namely the Prime Minister Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP), which were both aimed at creating jobs for the youth.
Under this scheme, the beneficiary is only required to invest 5-10% of the project cost, while the government provides a subsidy of 15-35 percent of the project cost based on various criteria. The remaining funds are provided to the entrepreneur as term loans by the participating banks.
The objective of PMEGP is –
To create employment opportunities in both rural and urban areas by establishing self-employment ventures.
To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, as well as unemployed youth, in order to halt rural youth migration to urban areas.
The scheme applies to all viable (technically and economically) projects in rural and urban areas that fall under the microenterprise sector.
The maximum project cost allowable in the manufacturing sector is Rs.210 Lakhs, and the maximum project cost allowable in the business/services sector is Rs.10 lakhs.
Only one member of a family is eligible for financial assistance under the scheme.
Only new projects are eligible for assistance under the scheme.
The scheme's assistance will not be available for activities listed on the scheme's negative list.
Individuals and other organizations that meet the specified criteria for such a term loan are eligible for the PMEGP loan. The following are the eligible entities that can apply for loans under the PMEGP:
Individuals must have completed Class VIII of schooling in order to establish a manufacturing unit costing more than Rs. 10 lakh or a service unit costing more than Rs. 10 Lakhs
Self-help Groups (SHGs) and Charitable Trusts are examples of eligible entities for loans under the PMEGP scheme
Societies registered under the Societies Registration Act of 1860
Cooperative Production Societies
There are no income restrictions for loans under the PMEGP scheme. Loans are only available to new units and are not available to exist units established through PMRY, REGP, or any other government scheme.
Furthermore, any unit that has received a subsidy under another scheme is ineligible for the PMEGP loan.
The following are the steps for an individual to apply for PMEGP Online:
Step 1: Go to the PMEGP official website (Khadi and Village Industries Commission website) and fill out the form online.
Step 2: Follow the instructions for completing the online PMEGP application and fill in all of the required information based on your information.
Step 3: After entering all of the required information, click on ‘Save Applicant Data' to save the completed derails.
Step 4: Once you've saved your data, you'll need to upload all of the documents for the application form's final submission.
Step 5: After completing and submitting the application, the applicant's ID number and password will be sent to his/her registered mobile number.
Step 1: Fill out the application form with the necessary information.
Step 2: Once all of the information has been entered, save the application as a draught.
Step 3: Print out the application form.
Step 4: Deliver the application form printout to the nearest office.
Step 5: Complete all of the formalities required by the respective bank.
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