Prime Minister’s Employment Generation Program (PMEGP) is a subsidized loan scheme administered by the Ministry of Micro, Small and Medium Enterprises, Government of India.
For implementing the scheme at national level, Khadi and Village Industries Commission (KVIC) is the nodal agency and for state level implementation, KVIC, KVIB and District Industries Center are responsible.
The main objective of the scheme is promoting self employment opportunities to generate employment in rural as well as urban areas.
All technically and economically viable projects in rural as well as urban areas are eligible for the PMEGP scheme.
The maximum project cost allowed for manufacturing units is 25 lakhs and for service units is 10 lakhs.
Only new projects are eligible for obtaining financial assistance under the scheme.
Any individual above 18 years of age and has passed 8th standard is eligible under the scheme.
Cost of land cannot be included in the project cost.
Individual Entrepreneurs, Institutions, Co-operative Societies, Self Help Groups, and Trusts are beneficiaries under the scheme.
To avail this loan, beneficiary has to submit his application online through KVIC websites or PMEGP e-portal.
The applicant should attend a compulsory Entrepreneurship Development Program of 10 days for project cost higher than 5 lakhs and 6 days for project cost up to 5 lakhs.
An entrepreneur can submit only one project and no existing units can apply for this scheme.
No collateral security needed up to 5 lakhs. There is a lock-in period of 3 years for government subsidy.
Applicant’s contribution for General Category is 10% and Special Category is 5%. Special category includes SC, ST, OBC, Minority communities, Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.
Beneficiary selection process will be done by a Task Force Committee consisting of KVIC, State KVIB and Bank representatives.
PMEGP scheme can be availed through 27 Public Sector Banks, Regional Rural Banks, Co-operative Banks and other banks approved by respective State Task Force Committees.
Activities that are ineligible under the scheme include any industry or business that deals with meat, tobacco, liquor, tea, coffee, rubber, sericulture, horticulture, floriculture, animal husbandry; industries enjoying sales rebates and benefited by the Khadi Program; rural transport other than auto rickshaws in Andaman and Nicobar Islands and house boats, tourist boats and shikaras in Jammu and Kashmir; and businesses related to plastic bags.
Any existing businesses enjoying PMRY, REGP or any other subsidized schemes under Government of India or State Governments are not eligible.