Is PMEGP scheme active or not? Whether citizens can apply for loan under this scheme or not? As per reports, PMEGP scheme is active and PMEGP 2.0 portal will be launched soon.
Revamped PMEGP 2.0 portal is being developed by Ministry of MSME and likely to be live shortly. As soon as the portal is active, you will get the updates on hellobanker whatsapp channel. Meanwhile, let’s understand what is PMEGP scheme.
The Prime Minister’s Employment Generation Programme (PMEGP) is a Central Government scheme that helps people start their own business by providing bank loans with government subsidy. The scheme aims to create self-employment opportunities and generate jobs in both rural and urban areas.
What is PMEGP?
PMEGP is a Central Sector Scheme run by the Ministry of Micro, Small and Medium Enterprises (MSME). The scheme is implemented by the Khadi and Village Industries Commission (KVIC) at the national level.
At the state level, the scheme is implemented through:
- State KVIC Directorates
- State Khadi and Village Industries Boards (KVIBs)
- District Industries Centres (DICs)
- Coir Board
These organisations act as the implementing agencies for the scheme.
Benefits of PMEGP
The scheme offers several benefits to people who want to start a new business:
- It provides a bank-financed subsidy for setting up new micro-enterprises in the non-farm sector.
- Government provides Margin Money Subsidy ranging from 15% to 35% on bank loans.
- Subsidy is available for projects up to ₹50 lakh in the manufacturing sector and ₹20 lakh in the service sector.
- People belonging to SC, ST, Women, Persons with Disabilities, Minorities, Ex-Servicemen and North Eastern Region (NER) can get a 35% subsidy in rural areas and 25% subsidy in urban areas.
Who Can Apply?
The following applicants are eligible under PMEGP:
- Any individual who is 18 years or above.
- There is no income limit for getting assistance under the scheme.
- No educational qualification is required for manufacturing projects up to ₹10 lakh and service projects up to ₹5 lakh.
- For manufacturing projects above ₹10 lakh and service/business projects above ₹5 lakh, the applicant should have passed at least Class 8.
- The following organisations are also eligible:
- Self Help Groups (including BPL groups that have not taken benefits under any other scheme)
- Institutions registered under the Societies Registration Act, 1860
- Production Co-operative Societies
- Charitable Trusts
Who is Not Eligible?
The following are not eligible under PMEGP:
- Existing units already set up under PMRY, REGP or any other Central or State Government scheme.
- Units that have already received a Government subsidy under any other Central or State Government scheme.
➡️ Click here to calculate PMEGP Loan EMI
PMEGP is an important government scheme for people who want to start their own business. It provides bank loans along with government subsidy, making it easier for entrepreneurs, artisans and unemployed youth to become self-employed. The scheme also helps create new jobs and supports the growth of micro-enterprises across India.
