PMEGP Subsidy Loan Entitlement and Bank Finance details, Objectives of the PMEPG Project and PMEGP Loan Limit…
The Prime Minister Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme that is backed by the Government of India. This scheme comes in handy in helping entrepreneurs set up businesses without having to worry about their current financial situation. Despite being an initiative of the Ministry of Micro, Small and Medium Enterprises, it is implemented at a national level by the Khadi and Village Industries Commission (KVIC).
But before you jump into filling the PMEGP application form, you need to understand what the scheme is all about. Luckily, we are here to offer a helping hand. Keep on reading to find out more.
Objectives of the PMEPG Project
Before going any further, it is in your best interest that you fully understand the objectives of the PMEGP scheme. After all, you want to make sure it is in line with your needs and goals. To cut the long story short, below are four objectives of the PMEPG project;
- Helps in the setting up of both micro-enterprises and self-employments projects in both urban and rural areas. This action is aimed at creating more employment opportunities
- To offer numerous opportunities to ethnic, artisans and unemployed youth in creating self-employment avenues
- Increase the growth rate of employment opportunities in both urban and rural areas through the availability of more earning capacity
- Provide sustainable and continuous employment opportunities for ethnic artisans in turn preventing rural-urban migrations especially among the youth
PMEGP Loan Limit
Now that you know about the objectives of the PMEGP scheme, you need to be fully aware of the loan limit. Well, this is something that should never give you sleepless nights since the loan limit is from Rs. 9.5 to Rs. 23.75 lakh. The maximum cost for the business or service sector is capped at Rs.10 whereas that of the manufacturing sector is capped at Rs.25 lakh.
Before you fill the application form, you ought to keep in mind that the beneficiary has to make a 5-10% contribution with the bank sanctioning the remaining 90-95%. Furthermore, the bank only provides the remaining balance amount of the project’s costs as part of a term loan.
Eligibility for PMEGP Loan
Not everyone is eligible to benefit from the PMEGP loan. To help clear some of the doubts you might already be having in your mind, below are list of persons who can apply for PMEGP loan:
- You must be 18 years of age and above
- Production Co-operative societies
- Charitable trusts
- Production co-operative societies
- Self-Help Groups
- Applicants must have passed at least the 8th standard for a manufacturing project costing Rs.10 lakh, and a business or service costing above Rs.5 lakh
The Bottom Line The PMEGP scheme has come just at the right time as it brings out employment opportunities to the youth while reducing rural-urban migration. Ensure you understand what is expected of applicants before filling the application form. Hopefully, this post will prove helpful whenever you want to get the most from the PMEGP Subsidy Loan scheme.