PMEGP: What is it? Here’s How To Avail PMEGP Loans And List of Documents

The Prime Minister's Employment Generation Programme (PMEGP) is a program designed to offer financial aid to individuals aspiring to establish new enterprises. The Khadi and Village Industries Commission (KVIC) serves as the central agency overseeing the program's implementation nationwide. At the state level, the scheme is executed through State Khadi and Village Industries Commission Directorates, District Industries Centres, State Khadi and Village Industries Board, and various banks. Just like the PMEGP loan, we have the option to choose a personal loan. The interest rate for PMEGP ranges from 11 per cent to 12 per cent, reflecting the standard rate. The repayment period can extend from three to seven years, commencing after an initial moratorium.

Also Read: Loan Recovery Agents Harassing You? Here Are The Legal Steps That Can You Take

PMEGP Objectives:

• Generate employment opportunities in both urban and rural India by fostering the creation of new self-employment ventures, micro-enterprises, and projects.

• Provide sustainable and ongoing employment to a significant portion of potential and traditional artisans, as well as unemployed youth from urban and rural areas across the country.

• Connect and bring together dispersed unemployed youth and traditional artisans from urban and rural areas, offering them meaningful self-employment opportunities.

• Enhance the wage-earning capacity of artisans, contributing to the growth of both urban and rural employment rates.

PMEGP Eligibility Criteria: Here are the conditions for eligibility for new enterprises (units) seeking to benefit from the Prime Minister's Employment Generation Programme:

· Age requirement: Minimum 18 years.

· Educational qualification: Completion of at least VII standard (for those seeking funding exceeding Rs 5 lakh in the service/business sector and over Rs 10 lakh in the manufacturing sector).

· Eligible entities: Self Help Groups (SHGs), including those falling below the poverty line, provided they haven't received benefits from any other scheme.

· Institutions registered under the Societies Registration Act, 1860.

· Charitable Trusts.

· Production Co-operative Societies.

Ineligibility:

· Existing units under REGP, PMRY, or any other State or Central Government scheme.

· Units that have already received subsidies under any other State or Central Government Scheme are not eligible for this program.

How To Apply For PMEGP Loan Online: The Divisional/State Directors of the Khadi and Village Industries Commission, in collaboration with the Director of Industries of respective states and the Khadi and Village Industries Board, will release local advertisements through electronic and print media. These advertisements will invite applications along with project proposals from potential beneficiaries aiming to initiate a service unit or establish an enterprise under the program.

Follow these steps to apply for a PMEGP loan online:

• Visit either of the websites by clicking on the links kviconline.gov.in or my.msme.gov.in.

• Once on the website, click on 'Prime Minister Employment Generation Programme' or 'PMEGP ePortal.'

• Proceed to click on 'Application Form for Individual, and the application form will appear on your screen.

• Note that the portal will have two distinct application forms, one for institutional applicants and another for individuals.

• Fill out the application form by providing details such as your name, type of activity, sponsoring agency, educational qualification, bank account details, etc.

• After filling out the form, click on 'Saveapplicant data.'

• Upload the required documents and apply.

• Upon submission, you will receive an application ID and a password on your registered mobile number.

What Is PMEGP Loan Limit: The PMEGP loan range is from Rs 9.5 lakh to Rs 50 lakh. For the manufacturing sector, the maximum project cost is capped at Rs 50 lakh, while for the business/service sector, it is capped at Rs 20 lakh. The beneficiary contributes five to ten per cent, and the bank approves the remaining 90 to 95 per cent. However, in practice, your bank credit will cover only 60 to 75 per cent of the project's cost. The PMEGP scheme supports the remaining 15 to 30 per cent, and the bank provides funding for capital expenditure through a Term Loan and working capital through cash credit or a composite loan that includes both capital expenditure and working capital.

Documents Needed For PMEGP Loan: The following documents must be submitted for the PMEGP:

· Caste certificate

· Aadhaar Card

· PAN card

· Project Report

· Special category certificate

· Education, skill development, or Entrepreneurship Development Programme training certificate

· Rural area certificate

· Registration certificate, authorization letter, and certificate for special category (if required) for institutions