PMEGP Loan Scheme

PMEGP Loan Scheme:The Government of India has started the Pradhan Mantri Employment Generation Program (PMEGP) Loan scheme to enable the youth of rural and urban areas of the country to start their own small industries and provide them permanent employment.

PMEGP Loan Scheme Quick Review:

Scheme name:	PMEGP Loan Scheme.
Started by:	Government of India.
When started:	In the year 2008.
Beneficiary:	Loan and subsidy for starting an industry.
Application mode:	Online.
Official website:	kviconline.gov.in.

What is the PMEGP loan scheme?

The Government of India has started this scheme in the year 2008. This pmegp scheme has been created by combining the earlier Pradhan Mantri Rozgar Yojana (PMRY) and Rural Employment Generation Program (REGP) scheme.

The main objective of this scheme is to provide opportunities to the youth to start their own self-employment in rural and urban areas and to create employment through this. Under this scheme, the government provides loans and subsidies to the youth to do industry.

This is a central scheme. The central government implements it through its MSME and KVIC ministry. At the state level, this scheme is implemented through the State KVIC, DIC and Coir Board.

Also read About: PM Mudra Loan Yojana.

PMEGP Loan Scheme subsidy distribution:

According to this scheme, the government subsidy is sent by KVIC to the financing bank through the modal bank. After that, on the basis of the physical verification report of the applicant and the end of the locking period, it is transferred to the beneficiary’s bank account.

Objective of PMEGP Loan Scheme:

• To provide an opportunity to rural and urban youth of the country to do small scale industry.
• To bring together traditional workers / rural and urban unemployed youth spread across the country and provide self-employment.
• To provide employment to rural workers and unemployed youth in their villages.
• To increase the capacity of the workers and workers of the country and increase employment in rural and urban areas.

PMEGP Loan Scheme Subsidy:

Beneficiary Category	Beneficiary Contribution	PMEGP Subsidy Rate
		Urban	Rural
General Category	10%	15%	25%
Special Category(SC/ST/Women/Transgender/NER Districts/Hill Districts/Border Districts).	5%	25%	35%

PMEGP Project Cost Limit:

Business Sector	Project Limit
Manufacturing Sector	50 Lakhs (Note:1 Crore as per latest update.)
Trading and Service Sector	20 Lakhs

Bank Finance Under PMEGP Loan Scheme:

S. No.	Parameter	Details
01.	Bank Loan Sanction %	– 90% for General Category beneficiaries
		– 95% for Special Category beneficiaries
02.	Loan Disbursement	Full amount will be disbursed suitably for setting up the project
03.	Type of Financial Assistance	Capital Expenditure: Term Loan
		Working Capital: Cash Credit
		Composite Loan: Includes both Capital Expenditure and Working Capital
04.	Maximum Project Cost (under PMEGP)	Rs. 50 lakh (includes both Capital Expenditure and Working Capital)
05.	Working Capital Limit (as % of Project Cost)	Manufacturing Units: Not more than 40%
		– Service/Trading Sector: Not more than 60%
	Additional Financing (Beyond PMEGP Limit)	– Bank may sanction additional funds over Rs. 50 lakh (Manufacturing) and over Rs. 20 lakh (Service)
		No subsidy will be provided on amount exceeding these limits
	Subsidy Adjustment (If expenditure < sanctioned loan after 3 years)	– If actual Capital + Working Capital Expenditure is less than the sanctioned loan (including own contribution), the excess Margin Money (subsidy) will be refunded to KVIC.

PMEGP Loan Scheme Eligibility:

1. The age of the applicant must be more than 18 years.

2. The applicant must have passed at least 8th class.

3. pmegp scheme loan will be available only for starting a new industry.

4. The applicant should not already be a beneficiary of pmry or regp or any other government scheme.

5. Without capital expenditure in the industry, the applicant is not eligible for this scheme.

6. Only one member of the family can avail the benefit of this scheme.

7. Shed or workshop already built for the industry Benefits of this scheme

8. Land used for industry is not included in the benefits of this scheme.

9. To avail the benefits of this scheme, it is mandatory for the applicant to register on the Udyam portal.

Also Read About: Bakari Palan Sarkari Yojana.

Eligibility Criteria for Existing PMEGP Unit:

1. The PMEGP subsidy taken for the first time should be successfully adjusted by the beneficiary on completion of the locking period.

2. After taking the benefit of PMEGP, the beneficiary should run his industry successfully for 3 years. In future, the beneficiary’s industry should have the possibility of earning good profits by doing good turnover.

PMEGP Loan Scheme Necessary Documents:

1. Applicant’s passport size photo.

2. Applicant’s Aadhaar card.

3. Applicant’s PAN card.

4. Applicant’s ration card.

5. Caste certificate.

6. Special caste certificate (if required).

7. Education certificate.

8. Industry project report.

9. Rural Area Certificate.

PMEGP Loan Scheme online application process:

1. Visit the government’s Jan Samarth portal.

2. Check loan eligibility.

3. Verify mobile and email.

4. Register and get login ID and password.

6. Visit the government’s kviconline.gov.in portal.

7. Fill the form.

8. Upload the required documents.

PMEGP loan scheme Important Links:

PMEGP Official website:	Click Here.
Jansamarth Portal:	Click Here.
Home Page:	Click Here.

FAQ about PMEGP loan scheme: