The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy programme launched by the Ministry of MSME to generate employment opportunities in both rural and urban areas. With the help of PMEGP scheme, the Government offers subsidies up to 35% on the total project cost. The project cost covered is up to Rs. 20 lakh for service units and Rs. 50 lakh for manufacturing units.
Our Helps for get Loan under PMEGP Scheme
Filling out the online PMEGP application
Creating CA Approved Project Reports
Detail Consultation for Clients
Helps to get subsidy
Support for EDP Training
What are the objectives of the PMEGP scheme ?
To create jobs in India's urban and rural areas by launching new self-employment programmes, micro-enterprises, and ventures.
To the greatest extent possible, support self-employment options for widely scattered traditional artisans/ unemployed rural and urban youth.
To create long-term and consistent employment for rural and unemployed youngsters, thereby halting their migration to cities.
Increasing artisans' earning potential and accelerating rural and urban employment growth.
What is the PMEGP loan limit ?
The PMEGP loan limit is Rs. 1 Lakh to Rs. 50 lakhs. The scheme caps the maximum project cost for the manufacturing sector at Rs. 50 lakh. It caps the cost at Rs. 20 lakh for the business/ service sector.
The beneficiary makes a 5 to 10% contribution, and the bank sanctions the remaining 90 to 95%.
In reality, your bank credit will only cover 60% to 75% of the project's cost. The PEG scheme covers the remaining 15 to 35%.
Banks provide the remaining cost of the project as a Term Loan.
Does collateral required for a loan under PMEGP ?
Collateral is not required for projects costing up to Rs. 20 lakhs under the PMEGP scheme. The CGTMSE provides a collateral guarantee for the project beyond Rs. 5 lakhs and up to Rs. 50 lakh under the PMEGP scheme.
Interest Rate charged by Banks under PMEGP Scheme ?
Loans under PMEGP Scheme interest between 10% - 12%.
Repayment Tenure
The repayment schedule may range between from 3 to 7 years after an initial moratorium as defined by the Bank.
The following documents are required when applying for a PMEGP loan application:
Passport-size photo
PAN Card
Aadhaar card
SSLC/School/Higher Education Certificates
Bank Passbook Front Page
Caste Certificate for SC/ST/OBC
Residential Certificate
Land Tax Receipt
Quotation of Machinery
Member/Councilor Letter
Certificate of academic and technical courses ( Not Mandatory )
Electricity/Telephone Bill (Not Mandatory )
Health Insurance Paper (Not Mandatory )
ITR (Not Mandatory )
Experience Certificate
The maximum loan limit for a project is Rs. 50 lakhs for the manufacturing unit and Rs. 20 lakhs for the service unit.
No, collateral is not required for projects costing up to Rs. 20 lakhs under the PMEGP scheme. The CGTMSE provides a collateral guarantee for the project beyond Rs. 5 lakhs and up to Rs. 50 lakh under the PMEGP scheme.
To check the extensive project list of businesses that come under PMEGP, you can visit the below link for information: https://www.kviconline.gov.in/pmegp/pmegpweb/docs/jsp/
newprojectReports.jsp
Prime Minister Employment Generation Programme (PMEGP) Subsidy is a credit-linked subsidy provided by the Government of India in which the beneficiary can get a subsidy of 15%-35% on the total project cost. This subsidy can be majorly availed by individuals and MSMEs across the country.
The margin money is the same as the Govt. subsidy and ranges from 15% – 35% of the total project cost.
Yes, applicants who are 18 years and above and have passed the VIII standard can apply for loans under the PMEGP scheme. There are no upper age limits, though banks may use their own criteria to prescribe an upper age limit.
After the training program is completed which is of around 16 days, the approximate time duration to avail loan under PMEGP from banks usually requires approximately 2 months in total.
Yes, you can avail loan under the PMEGP scheme to start a fast-food restaurant. If eligible you can also avail PMEGP subsidy of 90% of the total project cost offered by the Government of India. The PMEGP subsidy shall range from 15%-35%, depending upon the loan amount.
The beneficiary must have studied and passed class 8 if they want to establish a manufacturing unit costing over Rs. 10 lakhs or a service unit costing over Rs. 5 lakhs with a PMEGP loan.
Yes, this loan scheme is available to all eligible applicants, no matter where they stay. There are certain restrictions, however, on how much subsidy one can get. For instance, the subsidy for the general category is 15% in urban areas, while it is 25% in rural. For the weaker sections of society, it is 25% in urban areas and 35% in rural.
Margin money refers to the subsidy you get from the Khadi and Village Industries Commission (KVIC). It is the amount that the government contributes to your business under the PMEGP loan. This margin money is given to the bank and is subject to a lock-in period of 3 years.
Yes, the bank gives you the margin money after the lock-in period, provided you have used your funds, as per the guidelines provided by the bank.
The PMEGP loan requires that the working capital expenditure be equal to the cash credit limit at least once in the 3 years after the margin money is locked in. Moreover, it should not be less than 75% utilisation of the sanctioned limit.
Yes, you can. You need the approval of the breakup without working capital from the regional office or controller of the bank branch.
