The Prime Minister's Employment Generation Programme (PMEGP) is a scheme that offers financial support to persons who want to establish new businesses under the program. The Khadi and Village Industries Commission (KVIC) is the Network-Oriented Document Abstraction Language organization in charge of the scheme's national execution. The Programme is implemented at the state level by the State Khadi and Village Industries Commission Directorates, District Industries Centres, the State Khadi and Village Industries Board, and banks.
Residents of India are offered Prime Minister’s Employment Generation Programme (PMEGP) loans by the government for doing business and industry. You can acquire a loan from PMEGP ranging from 25 lakhs to 10 lakhs. The PMEGP scheme's goal is to create new jobs for the country's unemployed residents, as well as to encourage and assist young people in starting businesses and industries.
PMEGP Loan Interest Rate
The interest rate applicable to the PMEGP will be the normal interest rate between 11% and12% and the term of the return can be anywhere from three to seven years after an initial prohibition.
PMEGP Eligibility Criteria
Any individual over the age of 18.
Any Trust for charitable purposes.
Self-Help Organizations (including those who belong to BPL provided that they can not be availed of benefits under any other Scheme).
Any Institutions that have been registered under the Societies Registration Act of 1860.
Cooperative Production Societies
Recipients should have completed at least Standard VIII to create projects which cost more than Rs.10 lakhs in the manufacturing sector and more than Rs. 5 lakhs in the business/service sector.
Documents Required for PMEGP Loan
The following documents mentioned below must be submitted for the Prime Minister's Employment Generation Programme (PMEGP):
Rural area certificate
Certificate in a Special Category
Certificate of education, skill development, or Entrepreneurship Development Programme training
When necessary, institutions must get a registration certificate, an authorization letter, and a certificate for a particular category.
If you are eligible for a PMEGP Loan, you will be granted one based on the assumptions listed below
An open category person will receive a 25% subsidy to start a business in the rural department and a 15% subsidy to start a business in the urban department. In this scenario, you will be required to contribute 10% of the cost.
Persons who belong to the Special Category (SC/ ST/ OBC/ Minorities/ Women, Ex-Servicemen, Physically Handicapped, NER, Hill and Border areas, etc.) will receive a 35% subsidy for beginning an industry in the rural department and a 25% subsidy for beginning an industry in the urban department. You will receive a subsidy. In this case, you must bear a 5% cost increase.