The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme launched by the Government of India to generate self-employment opportunities by supporting micro-enterprises in rural and urban areas. It is implemented by the Khadi and Village Industries Commission (KVIC) at the national level and by District Industries Centres (DICs) at the state level.
Key Features of PMEGP
1. Financial Assistance:
- Provides financial support to entrepreneurs to set up new micro-enterprises.
- Subsidy: Ranges from 15% to 35% based on category and location.
2. Loan Amount:
- Manufacturing Sector: Up to ₹50 lakhs
- Service Sector: Up to ₹20 lakhs
3. Subsidy Details:
- The subsidy percentage under the Prime Minister’s Employment Generation Programme (PMEGP) varies based on the category of the applicant and location of the business (urban or rural areas).
- For General Category applicants, the subsidy is 15% in urban areas and 25% in rural areas.
- For Special Category applicants, including SC/ST/OBC, minorities, women, physically handicapped persons, ex-servicemen, and North Eastern Region applicants, the subsidy is 25% in urban areas and 35% in rural areas.
- In all cases, the beneficiary must contribute a portion of the project cost. General Category applicants must invest 10% of the project cost, while Special Category applicants need to invest only 5%.
4. Beneficiary Contribution:
- General Category: 10% of the project cost, Special Category: 5% of the project cost
5. Loan Structure:
- 90% (General) or 95% (Special Category) from Bank
- Subsidy (as per category) provided by the government
- No collateral required for loans up to ₹10 lakh
6. Eligible Activities:
- Manufacturing, trading, and service-based businesses.
(Examples: Agro-based industries, food processing, garments, furniture making, etc.)
7. Who Can Apply?
- Age 18 years and above.
- At least 8th standard pass for projects above ₹10 lakhs.
- New enterprises only (existing businesses are not eligible).
- Self-help groups (SHGs), cooperative societies, and charitable trusts can also apply.
HOW TO APPLY PMEGP
Online Application:
Submit Required Documents:
- Aadhaar Card
- PAN Card
- Educational Qualification Certificate
- Project Report
- Caste Certificate (if applicable)
- Bank Account Details
Loan Sanction & Disbursement:
- The bank reviews the application and approves the loan.
- The subsidy amount is adjusted in the loan account after successful project implementation.