PMEGP is a government-run programme administered by the Ministry of Micro, Small, and Medium Enterprises (MoMSME). Rural Employment Generation Programme (REGP) and the Prime Minister Rojgar Yojana (PMRY), which both worked to create jobs for young people, are combined into the Prime Minister's Employment Generation Programme (PMEGP).In this article, we will learn more about this government scheme.
PMEGP programme
The PMEGP programme, started by the Indian government, banks provide funding support for the establishment of new businesses. By raising the maximum project costs from the current Rs. 10 lakh to Rs. 20 lakh for service units and from Rs. 25 lakh to Rs. 50 lakh for manufacturing units, the government has made some changes to the existing programme. According to this scheme, business owners only need to contribute 5%-10% of the project cost, and the government will cover the remaining 15%-35%, depending on various conditions. The partnering banks provide applicants with term loans at competitive interest rates for the remaining project costs.
Objectives
Banks provide financial assistance to new businesses.
Creating jobs by establishing new self-employment micro-enterprises or projects in rural and urban areas of India.
Increasing artisans' earning capacity and focusing on increasing the rate of rural and urban employment growth
To bring together widely dispersed traditional artisans and unemployed youth in both rural and urban areas in order to create self-employment opportunities.
Preventing migration of rural people toward cities by providing them employment opportunities. This is especially true for traditional and prospective artisans, as well as rural and urban unemployed youth who take traditional or seasonal jobs but remain unemployed for the rest of the year.
Eligibility criteria for PMEGP loan
Any individual over the age of 18.
For projects costing more than Rs.10 lakh in the manufacturing sector and more than Rs.5 lakh in the business/service sector, at least VIII standard pass is required.
PMEGP only considers new projects for approval.
Existing units (under PMRY, REGP, or any other scheme of the Government of India or the State Government) and units that have previously received Government Subsidy under any other scheme of the Government of India or the State Government are ineligible.
Documents required for PMEGP loan
Application form with passport-sized photo
Identity and address verification for the applicant
Documents like PAN card, Aadhaar card, VIII Pass certificate etc
A special category certificate
Entrepreneur Development Programme (EDP) Training Certificate
SC/ST/OBC/Minority/Ex-Servicemen/PHC Certificate
Academic and technical course certificates
Any other documentation that the bank or NBFC requires
Application process for PMEGP loan
Offline
PMEGP scheme application can be submitted offline, you need to fill out the form and submit the application form to the nearest bank with all the required documents.
Online-
Go to the official website of PMEGP
Fill out all the details
Select save application data
Upload all the required documents
Submit the application form
After submission, ID number and password will be generated and sent to your registered mobile number.
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