PMEGP aims at providing financial assistance to self-employment ventures, in order to generate sustainable employment opportunities for unemployed youth and traditional artisans in rural and urban areas. The scheme is implemented by KVIC which acts as Nodal Agency at State level.
Eligibility
1. Any individual, above 18 years of age
2. There will be no income ceiling for assistance for setting up projects under PMEGP.
3. For setting up of project costing above Rs.10 lakh in the Manufacturing sector and above Rs. 5 lakhs in the Service/ Business sector, the beneficiaries should possess at least VIII standard pass educational qualification.
4. Assistance under the scheme is available only for new viable projects sanctioned specifically under the PMEGP.
5. Existing Units and the units that have already availed any Government Subsidy (under PMRY, REGP, PMEGP,CMEGP or any other scheme of Government of India or State Government) are not eligible.
6. Projects without Capital Expenditure (Term Loan) are not eligible.
7. Cost of Land can not be covered under the project cost.
8. All Implementing Agencies (KVIC, KVIB, DIC and Coir Board) can process applications in both rural as well as urban areas.
9. Applicant should possess valid Aadhaar Number.
10. Applicant shall give his/her consent to authenticate demographic details such as Aadhaar number, Name, Gender, Date of Birth and Mobile number from UIDAI server.
Note : Existing units and the units that have already availed Government subsidy under any other scheme of Government of India or State Government are not eligible.
Margin
For Setting Up New Micro Enterprises:
| CATEGORIES | BENEFICIARY’S CONTRIBUTION OF PROJECT COST | RATE OF SUBSIDY OF PROJECT COST | |
|---|---|---|---|
| Urban | Rural | ||
| General | 10% | 15% | 25% |
| Special categories | 5% | 25% | 35% |
The maximum cost of the project admissible for margin money subsidy under manufacturing sector is ₹50 Lakhs and business/service sector is ₹20 Lakhs respectively.
Facility
Term Loan & Working Capital in form of cash credit.
Project Cost
- Increase in maximum cost of the project/unit admissible for margin money subsidy under Manufacturing sector from Rs. 25 lakhs to Rs. 50 lakhs.
- Increase in maximum cost of the project/unit admissible for Margin Money subsidy under service sector from Rs. 10 lakhs to Rs. 20 lakhs.
Repayment
Between 3 to 7 years after an initial moratorium as may be prescribed by Bank.