PMEGP – A Complete Guide (Online Application, Loan)

PMEGP (Prime Minister's Employment Generation Programme) – A Complete Guide (Online Application, Loan)
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Prime Minister's Employment Generation Programme

To begin with, the blog lets us understand the meaning and full form of PMEGP is the Prime Minister’s Employment Generation Programme, which was launched on March 31st, 2008. 

The program was created by merging the former PMRY (Prime Minister Rozgar Yojana) and REGP (Rural Employment Generation Programme) to concentrate efforts on promoting youth entrepreneurship in both rural and urban areas. 

The Ministry of MSME (Micro Small and Medium Enterprises) in the Government of India has administrative control over the PMEGP.

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The implementation of the PMEGP is managed by KVIC (Khadi and Village Industries Commission) at the national level and its directorates and boards at the state and district level through the DIC. 

The PMEGP is a credit-linked subsidy aimed at boosting employment among young people by encouraging them to start businesses in the manufacturing and service sectors. To better understand the PMEGP scheme, it is important to delve deeper into its details.

Features of PMEGP Loan Scheme

The PMEGP scheme aims to provide subsidies for micro-enterprises through loans, with the following objectives:

  • To create employment opportunities in rural and urban areas by establishing new micro-enterprises.
  • To support self-employment for artisans and unemployed youth.
  • To reduce rural-to-urban migration for employment by promoting traditional vocations.
  • To increase the income of traditional artisans in rural areas through self-employment.
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Loan Amount: The loan amount is determined by the PMEGP guidelines, which consider the following:

  • Manufacturer: Up to Rs. 25 lakhs.
  • Services: Up to Rs. 10 lakhs.
  • Self-investment: Based on the location of the enterprise.

Plains: Up to Rs. 1 lakh.
Hills: Up to Rs. 1.5 lakhs.

PMEGP Loan Details: The PMEGP loan includes the following parameters:

  • Subsidy for specified categories such as SC/ST/OBC, women, physically challenged, ex-defence service personnel, North East, and border areas.
  • The funding gap is provided as a Term Loan by banks.
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What Documents Required for PMEGP Online Application?

The PMEGP loan can be applied for through the PMEGP portal, which is a digital platform provided by KVIC. The list of required documents is comprehensive to ensure a smooth process, which includes:

  • KYC documents of the borrower, such as Aadhaar, PAN, EPIC, etc. for input into the PMEGP portal.
  • Caste or community certificate to determine the correct category.
  • Subsidy claim documentation.
  • Project cost details, including the breakdown of capital expenditure and working capital.
  • A certificate from the bank certifying that no working capital is needed.

What Is the Eligibility Criteria for PMEGP Loan?

The PMEGP loan is available to individuals and organizations that meet the eligibility following criteria:

  • Must be an Indian citizen, who is above 18 years of age.
  • Individuals who are looking to start a new micro-enterprise or expand an existing one.
  • Priority given to micro-enterprises in rural areas.
  • Individuals belonging to marginalized sections of society such as SC/ST/OBC, women, physically challenged, ex-defence personnel, etc.
  • The project should be economically viable and technically feasible.
  • No outstanding loans or defaults with any financial institution.
  • The enterprise should not be involved in any illegal activity.
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Procedure for PMEGP

The application process is divided into three following phases:

  • Personal details input
  • Entering PMEGP status information, including desired PMEGP loan limit, and mandatory bank account details.
  • Submitting digitized documents after saving the application.

After all three phases are completed, the application can be submitted for evaluation. An application ID and password will be sent to the registered email for future reference.

Final Words

Therefore, PMEGP is a vital initiative that provides credit facilities and subsidies to individuals and organizations looking to start a new micro-enterprise or expand an existing one. 

This scheme plays an important role in creating employment opportunities and augmenting the income of traditional artisans in rural areas. 

With its simple application process and availability of credit facilities, PMEGP is an attractive option for those looking to start their own enterprise.

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