Prime Minister’s Employment Generation Programme (PMEGP)
Objective
Encourage new entrepreneurs to set up micro-enterprises through credit-linked subsidy support
Key Benefits
♦ Bank financed subsidy program for setting up new micro-enterprises in non-farm sector.
♦ Margin Money subsidy on Bank Loan ranges from 15% to 35% for projects up to Rs. 25 lakhs in manufacturing
and
♦ Rs. 10 lakhs in service sectorFor beneficiaries belonging to special categories such as
SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the
margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs.25.00 lakh
in the manufacturing sector and Rs.10.00 lakh in the service sector.
Scheme applicable for
♦ Any individual above 18 years of age, SHGs, Charitable trusts, Registered Societies etc.
Detailed Information
♦The own contribution of the beneficiary is 10% of the project cost in case of general category and 5% of the
project cost in case of reserved category (SC/ST/OBC/PH/Women/Ex Servicemen/ NER) beneficiaries.
♦If the application for loan is approved, Banks sanction and release the balance amount of 90 to 95 percent of
the total project cost suitably for setting up of the units by the beneficiaries.
♦In order to have sustainability of the projects/units set up under the scheme, support services are also
provided in the form of Backward & Forward Linkages by organizing events like awareness camps, workshops, EDP
training to the beneficiaries, exhibitions, etc.
♦Government of India has introduced online process flow of application and disbursement of Margin Money directly
to financing branches.
♦Corporation Bank was engaged as a single National Level Agency for operating the online fund flow system of
PMEGP.
♦One-page online application form is mandatory for individuals and institutional beneficiaries on the e-portal.
The application form/PMEGP MIS portal is mobile friendly. SMS/e-mail alerts sent to the applicant automatically
by the system or by the concerned officials at the process of each stage.
♦Model Projects of different KVI activities have been put up on PMEGP e-portal for the benefit of potential
beneficiaries.
♦Model Village Industries projects prepared by NSIC have also been linked to the website.
♦To increase the registration of MSMEs in the country, the Government has undertaken measures that the PMEGP
units can adopt the Udyog Aadhar Memorandum (UAM) to register online.
Eligibility Conditions of Beneficiaries
♦ Any individual, above 18 years of age
♦ There will be no income ceiling for assistance for setting up
projects under PMEGP.
♦ For setting up of project costing above Rs.10 lakh in the
manufacturing sector and above Rs. 5 lakh in the business /service
sector, the beneficiaries should possess at least VIII standard pass
educational qualification.
♦ Assistance under the Scheme is available only for new projects
sanctioned specifically under the PMEGP.
♦ Self Help Groups (including those belonging to BPL provided that
they have not availed benefits under any other Scheme) are also
eligible for assistance under PMEGP.
♦ Institutions registered under Societies Registration
Act,1860;
♦ Production Co-operative Societies, and
♦ Charitable Trusts.,
♦ 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.
Other eligibility conditions
♦ A certified copy of the caste/community certificate or relevant
document issued by the competent authority in the case of other
special categories, is required to be produced by the beneficiary to the
concerned branch of the Banks along with the Margin Money
(subsidy) Claim.
♦ A certified copy of the bye-laws of the institutions is required to be
appended to the Margin Money (subsidy) Claim, wherever necessary.
♦ Project cost will include Capital Expenditure and one cycle of Working
Capital. Projects without Capital Expenditure are not eligible for
financing under the Scheme. Projects costing more than Rs.5 lakh,
which do not require working capital, need clearance from the
Regional Office or Controller of the Bank‟s Branch and the claims are
required to be submitted with such certified copy of approval from
Regional Office or Controller, as the case may be.
♦ Cost of the land should not be included in the Project cost. Cost of the
ready built as well as long lease or rental Workshed/
Workshop can be included in the project cost subject to
restricting such cost of ready built as well as long lease or rental
workshed/workshop to be included in the project cost calculated for a
maximum period of 3 years only.
♦ PMEGP is applicable to all new viable micro enterprises, including
Village Industries projects except activities indicated in the negative list
of Village Industries. Existing/old units are not eligible (Para 29 of the
guidelines refers).
Implementing Agencies
The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), Mumbai, a statutory body created by the Khadi and Village Industries Commission Act, 1956, which will be the single nodal agency at the national level. At the State level, the scheme will be implemented through State Directorates of KVIC, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres in rural areas. In urban areas, the Scheme will be implemented by the State District Industries Centres (DICs) only. KVIC will coordinate with State KVIBs/State DICs and monitor performance in rural and urban areas. KVIC and DICs will also involve NSIC, Udyami Mitras empanelled under Rajiv Gandhi Udyami Mitra Yojana (RGUMY), Panchayati Raj Institutions and other NGOs of repute in identification of beneficiaries under PMEGP.
How To Apply
Click On The Link & Fill Application Form
PMEGP Application Form
A Detailed Guidelines for PMEGP is here Click on Download Button
Download Guidelines
After Submission Of PMEGP Loan Application
You Can Track Your Application status online Click On Below Link
PMEGP Track
Application
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