Prime Minister’s Employment Generation Programme – PMEGP Loan Scheme

PMEGP – New credit-linked subsidy program was launched by Government of India which is called Prime Minister’s Employment Generation Programme (PMEGP) by reconciling 2 schemes namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) which were in operation till 31.03.2008, this both schemes were launched for generation of employment opportunities through establishment of micro-enterprises in rural as well as urban areas.

PMEGP (Prime Ministry Employment Generation Programme) is guarded by Ministry of small, micro and medium enterprises, Govt of India.

PMEGP Loan Scheme

This scheme is launched by Khadi and Village Industries Commission (KVIC) as a single nodal agency at National Level. At State Level, the scheme is managed by the State Khadi & Village Industries Boards (KVIBs) in rural areas and in urban areas it is managed by District Industries Centers (DICs). PMEGP application form & pmegp loan online application.

Goals of PMEGP:

  • To facilitate constant and sustainable employment to a large section of traditional and future artisans, urban and rural unemployed youth in the country
  • To provide constant and sustainable employment chances in Urban and Rural areas of the country
  • to provide participants of financial Institutions for higher credit flow to the micro sector

Eligibility Criteria for PMEGP Loan Scheme:

  • Candidate should pass at least 8th standard, in terms of manufacturing sector projects which worth INR 10 lakhs and if Business or service sector project which worth INR 5 lakh.
  • For pmegp online application, the Applicant needs to be older than 18 years
  • Charitable Trusts and Self Help Groups
  • Production-based co-operative societies
  • Institutions Registered on Societies Registration Act – 1860

Who are the Beneficiaries of the PMEGP Loan Scheme Programme?

  • Women
  • Differently-Abled
  • Other Backward Classes (OBCs)
  • Scheduled Castes (SCs)
  • Ex-servicemen
  • Scheduled Tribes (STs)
  • People from the North-eastern states
  • Minorities
  • People living in border areas and hills

Features & guidelines of the pmegp scheme:

  • There will be no Income ceiling for setting up of projects
  • The maximum project cost of Rs. 25.00 lakhs in manufacturing sectors and Rs. 10.00 lakhs in the service sector
  • Industries which include coir based projects except those which are given in the negative list
  • Capital investment must not exceed Rs.1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas
  • Units which exists already by Govt. subsidy or existing units either on state/central govt. schemes are not eligible
  • The scheme is executed by UT Khadi / KVIC and state and V.I Boards in Rural areas and by District Industries Centers in Urban and Rural areas
  • support on the scheme is possible only for new units which established

Negative List of Activities:

  • Industry / Business connected with productions / processing / sale of meat or intoxicant items like Beedi / Pan / Cigar / Cigarette etc.
  • CNG Auto Rickshaw will be allowed only in A & N Islands and NER with the approval of the Chief Secretary of the State on merit.
  • Business/ Industry associated with cultivation, sericulture, horticulture, floriculture.
  • Manufacture of Polythene carries bags of less than 20 microns/containers of recycled plastic.
  • Processing of Pashmina Wool and products involving hand spinning and hand weaving coming under the purview of Khadi Certification Rule.
  • Rural Transport (except Auto rickshaw, Houseboat, tourist boat in A & N Islands and except houseboat, Shikara & Tourist Boats in Jammu & Kashmir and Cycle Rickshaw.)

Check pmegp loan online application process & documents required for pmegp loan

Quantum and Nature of Financial Assistance:

  • The maximum cost of project/unit acceptable on the manufacturing sector is Rs. 25 Lacs
  • The maximum cost of project/unit acceptable on Service / Business sector is Rs. 10 Lacs
Categories of beneficiaries under PMEGP         Beneficiary’s contribution
       (of  project cost)
Rate of Subsidy (of project cost) Term loan
Urban Rural The balance amount of the total project cost will be provided by Banks as a term loan.
General Category 10% 15% 25%
Special (including SC/ST etc.) 05% 25% 35%

 Which Industries will be benefited?

  • Rural engineering and biotech industries
  • Handmade paper and fiber industries
  • Agro-based food processing industries
  • Service and textile industries
  • Polymer and chemical-based industries
  • Forest-based industries
  • Mineral-based industries