Prime Minister’s Employment Generation Program(PMEGP)
Prime Minister’s Employment Generation Program (PMEGP) is a major scheme launched by the Government of India to promote entrepreneurship and create employment opportunities in the country. It aims to facilitate the establishment of micro enterprises in rural and urban areas by providing financial assistance through bank loans.
Today in this article we will learn about the Prime Minister’s Employment Generation Program (PMEGP) Loan Scheme.
What is a PMEGP Business loan?
PMEGP is administered by the Ministry of Micro, Small, and Medium Enterprises (MSME) and implemented through the Khadi and Village Industries Commission (KVIC) along with State Khadi and Village Industries Boards (KVIBs) and District Industries Centers (DICs). The primary objective of PMEGP is to create sustainable self-employment opportunities for individuals by setting up micro-enterprises.
Under the PMEGP scheme, a loan of Rs 1 lakh to 50 lakh is given to unemployed youth and women with 15% to 35% subsidy to start a business.
Key Features of PMEGP Loan
PMEGP provides financial assistance in the form of a composite loan which includes both subsidy and bank loan. The subsidy component is based on the project cost and varies depending on the category of entrepreneurs (general, special or weaker section).
Documents required for PMEGP loan
- Identity card like Aadhaar card
- PAN card mandatory
- Passport size photo of the applicant Business Profile
- 8th mark sheet
- OBC, SC, ST, Ex-Serviceman, Disabled category certificate
How much PMEGP loan will I get?
PMEGP loan is provided for projects with a maximum cost of up to Rs. Up to Rs 25 lakh in manufacturing sector. Loan up to Rs 10 lakh will be available in service sector.
Benefits of PMEGP Business loan
- PMEGP promotes the establishment of micro enterprises, thereby creating employment opportunities at the grassroots level.
- It encourages entrepreneurship among individuals from diverse backgrounds, including women, Scheduled Castes (SC), Scheduled Tribes (ST), and other marginalized sections of society.
- PMEGP facilitates access to credit for aspiring entrepreneurs who may not have collateral or a credit history, thus promoting financial inclusion.
- By focusing on rural and traditional industries, PMEGP contributes to the development of the rural economy and the preservation of indigenous crafts and skills.
The Prime Minister’s Employment Generation Programme (PMEGP) plays a vital role in promoting entrepreneurship and boosting economic growth across India. Through its financial assistance and support services, PMEGP empowers individuals to realise their entrepreneurial dreams and contribute to the country’s growth story.