PMEGP stands for Prime Minister’s Employment Generation Programme, a scheme launched by the Government of India to provide financial assistance to entrepreneurs who want to start or expand their micro, small or medium enterprises (MSMEs). The scheme aims to create employment opportunities and promote self-reliance among the rural and urban population.
Under PMEGP, the beneficiaries can avail loans ranging from Rs. 10 lakh to Rs. 25 lakh for manufacturing units and from Rs. 5 lakh to Rs. 10 lakh for service units. The loans are provided by various banks and financial institutions, and are subsidized by the government up to 15% to 35% depending on the category of the beneficiary and the location of the project. The subsidy is calculated on the project cost, excluding the working capital.
To apply for PMEGP loans, the beneficiaries have to submit an online application form along with a detailed project report, identity proof, address proof, caste certificate (if applicable), and bank account details. The applications are then scrutinized by the District Level Task Force Committee (DLTFC) and forwarded to the banks for sanction. The banks conduct their own appraisal and due diligence before disbursing the loans.
PMEGP is a beneficial scheme for aspiring entrepreneurs who want to start or grow their own businesses with minimal investment and risk. The scheme not only provides financial support but also offers training and guidance to the beneficiaries through various agencies like Khadi and Village Industries Commission (KVIC), Khadi and Village Industries Board (KVIB), and District Industries Centre (DIC).