Prime Minister Employment Generation Programme (PMEGP)

Prime Minister Employment Generation Programme (PMEGP) is sponsored by Khadi and Village Industries Commission (KVIC), Government of India. This scheme aims to generate sustainable employment opportunities in rural and urban areas by promoting new and self-employment ventures, particularly among educated and unemployed youth and women. It provides margin money subsidy.

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Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) FAQsGrievancesPartner OnboardingLogin Register # Prime Minister’s Employment Generation Program (PMEGP) Business Loan | Ministry of Micro, Small & Medium Enterprises * PMEGP is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).

The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centers (DICs), and Coir Board, known as the Implementing Agencies. * Bank-financed subsidy program for setting up new micro­enterprises in non-farm sector.

* Margin Money subsidy on Bank Loan ranges from 15% to 35% for projects up to Rs. 50 Lakh in manufacturing and Rs. 20 Lakh in the service sector * For 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.

* Any individual, above 18 years of age is eligible * There will be no income ceiling for assistance for setting up projects under PMEGP * No Educational Qualification is required for project cost up to 10 Lakhs for manufacturing and up to 5 Lakhs for service sector * Beneficiaries should possess at least VIII standard pass educational qualification for setting up of project costing above Rs.

10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector (i) Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme), (ii) Institutions registered under Societies Registration Act, 1860, (iii) Production Co-operative Societies, and, (iv) Charitable Trusts are also eligible for assistance under PMEGP.

* 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 * To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.

* To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place. * To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.

* To increase the wage-earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment. ### Did you find your perfect scheme ?

If you are fulfilling all required criteria mentioned above you can start your loan application via checking your eligibility Check Eligibility Download Scheme Document Watch Video ## Frequently Asked Questions Related to Prime Minister’s Employment Generation Program (PMEGP) PMEGP is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).

The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centers (DICs), and Coir Board, known as the Implementing Agencies. **2.

** What are the objectives of PMEGP? Following are the objectives of the PMEGP scheme: * To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises. * To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.

* To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas. * To increase the wage-earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment. **3.

**What are the benefits under the scheme? Bank-financed subsidy program for setting up new micro­enterprises in non-farm sector. Margin Money subsidy on Bank Loan ranges from 15% to 35% for projects up to Rs.

50 Lakh in manufacturing and Rs. 20 Lakh in the service sector For 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.

50 lakh in the manufacturing sector and Rs. 20. 00 lakh in the service sector.

**4. **What are the main PMEGP loan details? Banks sanction funding up to 90% to 95% (special category) of the project cost.

On this, the government provides 15% to 35% as margin money or PMEGP subsidy. The remaining 60% to 75% is provided by the bank as a term loan. Interest rates are regular as per the prevailing Bank rates Repayment tenor is 3 to 7 years after a preliminary moratorium.

**5. **Who are eligible to avail the benefits under the scheme? Any applicant satisfying the below mentioned criteria, will be eligible for claiming the benefits under the scheme: * Any individual, above 18 years of age.

* At least VIII standard pass for projects costing above Rs. 10 lakh in the manufacturing sector and above Rs. 5 lakhs in the business / service sector.

* Only new projects are considered for sanction under PMEGP.

* Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) * Institutions registered under Societies Registration Act,1860 * Production Co-operative Societies, and 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.

**6. **What are the requirements of beneficiary’s contribution and rate of subsidy under the scheme? The beneficiary contribution and rate of subsidy as a percentage of the project cost is as under: (1) The maximum cost of the project/unit admissible under manufacturing sector is Rs.

50 lakh. (2) The maximum cost of the project/unit admissible under business/service sector is Rs. 20 lakh.

(3)The balance amount of the total project cost will be provided by Banks as term loan **7. **Whether EDP training is compulsory? Before MM Claim through PMEGP eportal, EDP training of 10 working days for project cost more than Rs.

5. 00 lakhs and 6 working days for project cost up to Rs. 5.

00 lakhs are compulsory. **8. **Which entities are not eligible to avail subsidy under the scheme?

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. **9. **Is there an income ceiling to avail benefit under the scheme?

There will be no income ceiling for assistance for setting up projects under PMEGP. **10. **What industries are allowed under the scheme?

PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities indicated in the negative list of Village Industries. **11. **What is the component of project cost?

Capital Expenditure Loan, one cycle of working capital and 10% of project cost as own contribution in case of General category and 5% of project cost in case of weaker section. **12. **How the capital expenditure loan / Cash Credit Limit be utilized?

Working Capital at least once should touch 100% limit of Cash Credit within three years of Lock-in period of M. M. and not less than 75% of the utilization of the sanction limit on an average.

**13. **Whether cost of land includes in the project cost? **14.

**Which are the financial agencies? 27 Public Sector Banks, Regional Rural Banks (RRB), Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee. **15.

**What is rural area? Any area classified as Village as per the revenue record of the State, irrespective of the population. It also includes an area even if classified as town provided its population does not exceed 20000 **16.

**What are the main criteria of project? It should fulfill the criteria of rural area (for Rural Area project), per capita investment, own contribution, negative list, and the unit should be new one. **17.

**Whether collateral security is mandatory? As per RBI guidelines the project costing upto Rs. 20.

00 lakhs under PMEGP loans are free from collateral security. The CGTSME provided collateral guarantee for the project beyond Rs. 5.

00 lakhs and upto Rs. 50. 00 lakhs under PMEGP scheme.

**18. **Whether an entrepreneur can submit more than one project? **19.

**Can members of a same family avail the loan? No. Either the husband or the wife can avail the loan. **20.

**What is the definition of family? **21. **Whether Unit can be set up in urban Area.

**22. **Whether existing unit can avail funds under PMEGP? **23.

**Is trading allowed under PMEGP? Trading in general is not allowed except under the following circumstances * Business / trading activities in the form of sales outlets may be permitted in NER, LWE-affected districts and A & N Islands.

* Retail outlets/business - selling Khadi products, Village Industry products procured from Khadi and Village Industry Institutions certified by KVIC and products manufactured by PMEGP/SFURTI units only may be permitted under PMEGP across the country. * Retail outlets backed by manufacturing (including processing) / service facilities may be permitted (across the country). ### **While Applying - Process** **24.

**How to make a PMEGP online application * To start with PMEGP online, apply via the e-portal at https://www. kviconline. gov.in/pmegpeportal/pmegphome/index.

jsp * Click on ‘online application form for individual’/ ‘online application form for non-individual. ’ * Fill out the entire form by entering details like name, sponsoring agency, type of activity, first financing bank and so on. * When done, click on ‘save applicant data’ * Then, in the “upload documents”, the required documents need to be uploaded * Then fill up the score card prepare for final submission.

* Post final submission, you will get an application ID and a password sent to your registered mobile number. **25. **What are the documents required when making a PMEGP loan application?

Here are some documents you may need to produce when applying for the PMEGP loan scheme: * Special category certificate, if required * Rural area certificate (Population certificate) * Education/ skill development training/ EDP certificate **26. **Whether model projects are available with KVIC. Yes, Industry wise model projects are available at kvic.

org. in **27. **Where training centers are available to undertake EDP?

List of EDP training centers including 582 training centers of RSETI/RUDSETIS are available at our website kvic. org. in **28.

**What is lock in period for Govt. Subsidy? **29.

**Can project be financed jointly from two different sources (Bank/Financial Institutions)? No, such mechanism is not available **30. **How can an applicant know his/her application status?

While submission of PMEGP online application getting user ID password to your register mobile number. Accordingly, he/she can check their application status on website www. kviconline.

gov.in. However, you may contact concerned agency office for information **31. **What is Population Certificate and where will it be generated?

Population certificate indicates the total number of persons inhabiting a country, city, or any district or area. This certificate will be available in the Gram Panchayat or Municipal Offices. **32.

**If application is rejected by the bank, can we make a fresh application? **33. **If Application not submitted due to some error (twice of time apply with same Aadhar Number) Please reject your application & contact your implementing agency then you can apply for fresh application with same Aadhar Number.

**34. **What is DPR and how to create the Detail Project Report? DPR means detail project report which includes all the information about your project i.e. project cost, own contribution, capital expenditure, working capital, employment i.e.1 lakh = 1 employee.

For creating detailed project report, you can go to PMEGP website & click on the Download model projects. From this option you can create detail project report * [](https://www. facebook.

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