The Government of India has been working meticulously and launching several schemes to boost employment in the country. One of them is the Prime Minister Employment Generation Programme or PMEGP scheme. The scheme was launched in 2008 by merging two existing schemes: PMRY, or Pradhan Mantri Rojgar Yojana, and REGP, or the Rural Employment Generation Programme scheme.
The initiative comes under the Ministry of Micro, Small, and Medium Enterprises (MSME), with the Khadi and Village Industries Commission or KVIC as the nodal agency on the national level. At the state level, the State KVICs are the implementing agency and District KVICs and banks are responsible for district-level implementation.
How to Benefit from the PMEGP SCHEME?
As mentioned, the PGEMP government loan scheme was launched to promote job creation in both urban and rural areas. The scheme aims to launch new self-employment programmes. Also, it aims to improve the earning potential of artisans, helping boost the overall growth and inclusivity of the country.
Here is how you can benefit from the PGEMP scheme:
- You can get subsidies and startup business loans at comparatively much lower interest rates to set up new enterprises. The enterprise shall be in the non-farm sector.
- You can reduce your reliance on informal money lenders and benefit via the direct credit flow introduced by the scheme. You can directly approach official and authentic financial institutions.
- You can benefit from the increased opportunities in employment and entrepreneurship.
In addition to these, here’s how you can directly benefit from PGEMP loans and subsidies.
- PGEMP Benefits Via Loan
You can avail the PGEMP loan ranging between ₹9 lakhs to ₹50 lakhs. For the manufacturing sector, the cost should not be more than ₹50 lakhs, while for the service sector, it should be no more than ₹20 lakhs. The applicant is supposed to fund at least 5 to 10% of the project cost while the remaining is sanctioned by the banks.
- PGEMP Benefits Via Subsidies
For general subsidies, the beneficiary has to make a share of at least 10% while the urban subsidiary rate is fixed at 15% and rural subsidies at a rate of 25%. For special subsidies, the beneficiary funds only 5%, while urban and rural subsidiary rates are fixed at 25% and 35%, respectively.
Who Can Benefit from the PMEGP Scheme?
Before you apply for benefits of this particular government loan scheme, it is better to check the eligibility criteria. This loan can be availed by anyone meeting the following requirements:
- The individual must not be less than 18 years of age.
- Shall have passed at least standard 8th for manufacturing projects above ₹10 lakhs and for business/service sector projects costing more than ₹5 lakhs.
- The loan benefits can be availed only for new projects.
- Self-help groups, including those under BPL, are eligible, given they shall not be availing the benefits of any other scheme.
- Co-operative societies, charitable trusts, and institutions listed under the Societies Registration Act of 1860 are also eligible.
Prerequisites Needed for PMEGP Application
To ensure you fill out your loan application without any hassle, try keeping a few essential documents handy. Here is a list of some essential documents:
- Detailed Report of Your Project
- Caste Certificate
- Certificate of Rural area
- Certificate showcasing your education levels. This includes any extra skill development or any other certificate received.
- Special category certificate
- Other listed documents
How to Apply For a PMEGP Loan?
To avail of this startup business loan, you need to fill out an application. Here is how you do it.
- Start the PGEMP application via online form filling through their website.
- Now choose the suitable option, if you want to fill the form for individual or non-individual.
- Complete the applicant form by filling in all important details like name, agency, project, qualifications, bank details, etc.
- Once you’ve completed filling the form, save it by tapping into ‘save applicant data’.
- Now, complete the remaining process by uploading all the necessary documents asked.
- Once done, you’ll get a unique ID and password.
Bottom Line
PGEMP scheme aims to improve the growth and development of the country. From enhancing employment opportunities to giving equal subsidies, it strives to boost fairness and inclusivity in the business landscape. Consider reading the essential details and eligibility criteria, and apply for the loans to take your business to new heights.
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