PMEGP Scheme 2024: Benefits, Eligibility, and How to Apply For Loans in India

The Prime Minister’s Employment Generation Programme (PMEGP) is a government initiative aimed at creating employment opportunities by supporting the establishment of micro-enterprises in rural and urban areas. This scheme is implemented by the Ministry of Micro, Small, and Medium Enterprises (MSME) and serves as a financial aid mechanism for individuals and groups to set up businesses under various sectors.

Started in 2008, the PMEGP scheme combines two older programs: PMRY and REGP. It is implemented by the Khadi and Village Industries Commission (KVIC) at the national level and local offices in states. Through this, individuals can apply for loans and subsidies to set up businesses and reduce unemployment.

Objectives

• To generate employment opportunities by setting up micro-enterprises.
• To encourage self-employment among rural and urban youth.
• To provide continuous employment to artisans and skilled workers to prevent migration to urban areas.
• To support traditional artisans and improve their income levels.

Eligibility Criteria

1. Must be 18 years or older.
2. For projects over ₹10 lakh (manufacturing) or ₹5 lakh (services), the applicant must have passed the 8th standard.
3. Self-help groups, cooperative societies, and charitable trusts can apply.
4. Existing businesses or those already getting subsidies under other schemes are not eligible.

Benefits

1. Margin Money Subsidy

• For New Micro-Enterprises/Units: Funds are allocated in the annual budget for disbursing margin money (subsidy) to set up new micro-enterprises.
• For Upgrading Existing Units: ₹100 crore or as approved by the competent authority is earmarked each fiscal year for upgrading existing PMEGP/REGP/MUDRA units through margin money subsidy.

2. Backward and Forward Linkages

5% of the total annual budget allocation is reserved for various activities, such as:

• Awareness camps
• State/District monitoring meetings
• Workshops, exhibitions, and bankers’ meetings
• Publicity, Entrepreneurship Development Program (EDP) training
• Physical verification, geo-tagging, and evaluation
• Setting up Entrepreneurship Facilitation Centres (EFCs), Centers of Excellence (CoE)
• Field expert engagement, Data Entry Operators (DEOs)
• IT infrastructure development, call centers, awards, and other related activities.

Levels of Support Under PMEGP

1. Setting Up New Micro-Enterprise (Units)

a) General Category:

• Beneficiary’s Contribution: 10% of project cost
• Rate of Subsidy:
  • 15% for Urban Areas
  • 25% for Rural Areas

b) Special Category (SC, ST, OBC, Minorities, Women, Ex-Servicemen, Differently Abled, NER, Aspirational Districts, Hill/Border areas, etc.)

• Beneficiary’s Contribution: 5% of project cost
• Rate of Subsidy:
  • 25% for Urban Areas
  • 35% for Rural Areas

Note:

• The maximum cost of the project/unit eligible for Margin Money subsidy:
  • Manufacturing sector: ₹50,00,000
  • Business/Service sector: ₹20,00,000
• Banks will provide the balance amount of the project cost. If the project exceeds the above limits, the bank can provide the balance without government subsidy.

2. 2nd Loan for Upgradation of Existing PMEGP/REGP/MUDRA Units

• Beneficiary’s Contribution: 10% of project cost
• Rate of Subsidy:
  • 15% (20% for NER and Hill States)

Note:

• Banks will provide the remaining project cost. If the total project exceeds the limits, banks may cover the extra without government subsidy.
• The maximum project cost/unit eligible for Margin Money subsidy:
• Manufacturing sector (upgradation): ₹10,00,00,000 (maximum subsidy ₹15,00,000, or ₹20,00,000 for NER and Hill States)
• Business/Service sector (upgradation): ₹25,00,000 (maximum subsidy ₹3,75,000, or ₹5,00,000 for NER and Hill States)

National Career Service Portal Online Registration Process 2024

Required Documents

• Filled application form.
• Age and residence proof (Aadhaar, Voter ID).
• Educational certificates (if needed).
• Detailed project report (business plan).
• Bank account details and KYC.
• Caste certificate (if applicable).
• Necessary licenses for the business.

How to Apply

Online:

1. Visit the PMEGP Portal.
2. Click “Apply” under “New Unit” or “Existing Unit” (for 2nd loan).
3. Fill in the form and upload required documents.
4. Submit the form and note the acknowledgment number.

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Offline:

1. Collect the application form from the nearest KVIC office or PMEGP portal.
2. Fill in all details and attach documents.
3. Submit the form to the local KVIC or DIC office.
4. Get an acknowledgment slip for tracking.

PMEGP Loan Tracking

After applying, log in to the PMEGP portal to check the status.

PMEGP is a great opportunity to start a small business with government support. Use this scheme to achieve financial independence and create jobs in your community.

The Prime Minister’s Employment Generation Programme (PMEGP) plays a crucial role in empowering individuals to become entrepreneurs, generating employment opportunities across the country. With financial assistance, easy PMEGP loan apply options, and a simplified application process through the PMEGP portal, the scheme aims to foster inclusive economic growth. Whether applying for a small enterprise or understanding PMEGP loan details, the program provides a comprehensive framework to promote self-employment and local enterprise development.