What is the Prime Minister’s Employment Scheme?
The full form of PMEGP is the Prime Minister’s Employment Generation Program.
There should be more and more self-employed in the country and people should become job creators instead of seeking jobs. The central government is moving ahead with this goal. Pradhan Mantri Rozgar Yojana (PMEGP) is also a part of this campaign. In simple language, the subsidy is given by the government on the business loans available under the PMEGP scheme.
Under the Prime Minister’s Employment Scheme, a provision of Rs 2,327 crore has been made which will be creating 14 lakh new jobs by 2020
Under the Pradhan Mantri Rozgar Yojana, a provision has been made to provide business loans up to Rs 25 lakh for starting a business in the service sector and Rs 15 lakh for starting a business in the manufacturing sector.
The PMEGP program has been implemented by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. And the responsibility of promoting the scheme across the country has been given to the Khadi and Rural Industries Commission (KVIC).
The Khadi and Rural Industries Commission (KVIC) serves as the nodal. Along with this, responsibility for the compliance of PMEGP scheme at the state level has been given to KVIC, KVIB and District Industries Centers.
Who Gets a Business Loan in Prime Minister Employment Scheme?
Under the Prime Minister Employment Generation Program (PMEGP), business loans are provided by the government to those people who want to start their own business.
However, the condition of this scheme is that the business has to invest up to 10% of the entire project cost:
What is the Eligibility Criteria for PMEGP Scheme?
The following people and institutions are eligible to receive the benefits of the PMEGP scheme:
- Anyone over 18 years old.
- It is mandatory for the candidate to be class 8 passed, to set up a manufacturing sector unit of more than 10 lakhs and to start a service sector business of more than Rs 5 lakhs.
- All those self-help groups (SHGs) who have not got the benefit of any other scheme are also eligible to avail the benefit of Pradhan Mantri Rojgar Yojana.
- Societies registered under the Societies Act 1960.
- Charitable Institutions and Cooperatives.
- Cost of land should not be included in the project cost.
- Existing/old business or the business in the negative list is not eligible.
How Much Loan is Provided in the PMEGP Scheme?
Under the PMEGP scheme, the candidates get a loan of up to Rs 10 lakh. The interest rate of the loan is very low and the loan repayment period is from 3 years to 7 years.
The candidate himself has to bear 10% of the total cost and 90% is received in the form of a loan.
Subsidy in Prime Minister Employment Generation Programme?
The PMEGP loan scheme provides a subsidy of up to 35% by the government. However, subsidy on loan is provided in two categories.
- Open category
- SC, ST, Disabled, Women and Retired Persons
- Under the open category, there is a provision of subsidy of up to 25% for starting a new business in rural areas.
- If a person wants to start a business in the urban area under the open category, a provision of 15% subsidy has been made for them.
SC, ST, Disabled, Women and Retired Persons
- If the business is being started in a rural area, then a provision has been made to provide 33% subsidy.
- If the business is being started in the urban area, then a provision of 25% subsidy has been made for it.
PMEGP Loan Approval Process
- To get a business loan under the Pradhan Mantri Employment Generation Plan, firstly one has to apply online.
- A project report has to be made before applying PMEGP online. That project report has to show how you will use the business loan amount. If you want to know how to create a project report, click this link https://kviconline.gov.in/pmegp/pmegpweb/docs/jsp/newprojectReports.jsp. Here you will get hundreds of project reports.
- To apply PMEGP online, you have to log in to the official website of Pradhan Mantri Employment Generation Plan
Documents Required for PMEGP
Some important documents required to get a business loan under the Prime Minister’s Employment Generation Plan are as follows:
- Applicant’s Aadhar Card
- Pan Card
- Certificate of permanent residence
- Education certificate
- Caste certificate
- Project report
- No objection certificate (if the business is in a rented house), proof of ownership (if the place of business is own)
- A certified copy of the bye-laws of the institution to attached to the subsidy claim, wherever necessary.
- Certified copy of approval from the regional office or the controller for the projects costing more than 5 lakhs not required for the working capital
We should let you know that if you already have a business, then to extend your business and fulfill other needs, a business loan of up to Rs 7.5 lakh from the country’s leading NBFC ZipLoan, without any mortgage, can be received in just 3 days*.
Business Loan Eligibility from ZipLoan
- Business is more than 2 years old.
- ITR of 1.5 lakhs to be filed annually.
- The annual turnover of the business should be more than 10 lakhs.
- Either the resident premises or business premises should be in the applicant’s name (It is valid even if it is in the name of parents, siblings, husband and wife, sons and daughters)
Documents Required for Business Loans from ZipLoan
- Aadhar Card
- Pan Card
- Last 9 months bank statement
- Copy of ITR filed
- Proof of ownership of either the resident premises or business premises (It is valid even if it is in the name of parents, siblings, husband and wife, sons and daughters)