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PMEGP
(Prime Minister Employment Generation Programme)

The Prime Minister Employment Generation Programme (which is the PMEGP full form) is a Government of India-backed credit linked subsidy scheme. Under this scheme, beneficiaries can get a subsidy amounting to 15-35% of the project cost from the government. PMEGP is an initiative of the Ministry of Micro, Small and Medium Enterprises and is implemented at a national level by Khadi and Village Industries Commission (KVIC). As an entrepreneur, PMEGP can give you the financial assistance required to set up a new project. Read on to know more about the PMEGP scheme.

  • Easy to Apply

We can help you to apply PMEGP Application for your startup.

  • Project Report

We can help you to make your business project report.

  • Subsidy Scheme

After Completion of Process, Get 15-35% Subsidy from Govt.

Features & Benefits

1. To produce employment opportunities in both urban and rural areas in India through the establishment of new self-employment projects, micro-enterprises and ventures.

2. To facilitate self-employment opportunities for widely dispersed traditional artisans/ unemployed rural and urban youth to the degree feasible, at their location.

3. To generate sustainable and continuous employment to rural and unemployed youth as well as prospective and traditional artisans and thereby halt rural youth from migrating to urban areas.

4. To boost artisan’s income-earning capacity and spur the growth rate of both rural as well as urban employment.

Beneficiary CategoriesBeneficiary’s Share(of Total Project)Subsidy Rate(From Govt.) – UrbanSubsidy Rate(From Govt.) – Rural
General10%15%25%
Special5%25%35%

The PMEGP loan limit is from Rs. 5 Lakh to Rs.23.75 Lakh. The maximum project cost for the manufacturing sector is capped at Rs.25 lakh and capped at Rs.10 lakh for the business/ service sector. The beneficiary makes a 5 to 10% contribution and the bank sanctions the remaining 90 to 95%.

In actuality, your bank credit will amount to only 60% to 75% of the project’s cost as you receive the remaining 15 to 35% as margin money through the PMEGP scheme. Banks provide the balance amount of the project’s cost as a term loan.

Projects costing up to Rs.10 lakh do not require a security as per RBI guidelines. For projects with costs ranging from Rs.5 lakh to 25 lakh, CGTSME provides a collateral guarantee. The PMEGP loan process is different for projects costing over Rs.10 lakh as you may need to provide security as per your lender’s terms.

Loans under the PMEGP scheme incur regular interest rates between 11 and 12%.

  • Banks sanction funding up to 90% to 95% of the project cost.

  • On this, the government provides 15% to 35% as margin money or PMEGP subsidy.

  • The remaining 60% to 75% is provided by the bank as a term loan.

  • Interest rates are regular, from 11% to 12%.

  • Repayment tenor is 3 to 7 years after a preliminary moratorium.

  • Any individual who is above 18 years of age.

  • The person should have passed at least the 8th standard for a manufacturing sector project costing above Rs.10 lakh, and a business/service sector costing above Rs. 5 lakh.

  • Self Help Groups (even those falling under BPL provided that the SHG has not obtained benefits from another scheme)

  • Institutions registered under the Societies Registration Act,1860

  • Production Co-operative Societies

  • Charitable Trusts

Here are some documents you may need to produce when applying for the PMEGP loan scheme:

  • Aadhaar card

  • PAN card

  • Project report

  • Caste certificate

  • Special category certificate, if required

  • Rural area certificate

  • Education/ skill development training/ EDP certificate

  • Authorization letter

What We Can Do for You

We Can help you to apply PMEGP Application and can suggest you suitable business for you. We can help you to complete documentation for Application.

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