Winning Bizness Desk

Mumbai. Entrepreneurs looking to start a small business but facing financial constraints can benefit from the Prime Minister’s Employment Generation Program (PMEGP). This credit-linked subsidy scheme provides loans for manufacturing and service sector projects without requiring collateral for loans up to ₹10 lakh.

Under PMEGP, loans are available for projects costing up to ₹50 lakh in the manufacturing sector and ₹20 lakh in the service sector. Applicants must arrange 5% of the project cost, while the remaining amount is provided as a bank loan. The government has allocated ₹13,554 crore for the scheme for five financial years (2021-22 to 2025-26).

Subsidy of Up to 35% Available

The scheme offers a 35% subsidy for beneficiaries in rural areas and 25% for urban entrepreneurs. Loans up to ₹10 lakh are provided without any collateral.

PMEGP aims to promote self-employment opportunities by encouraging small business setups and supporting traditional artisans and unemployed youth in rural and urban areas. The scheme also seeks to reduce migration from rural to urban areas by creating local employment opportunities.

KVIC: The Implementing Agency

At the national level, PMEGP is implemented by the Khadi and Village Industries Commission (KVIC), which operates under the Ministry of Micro, Small & Medium Enterprises (MSME). KVIC is the sole nodal agency responsible for overseeing the scheme’s execution.

Eligibility Criteria

To apply for the scheme, applicants must fulfill the following conditions:

• Must be an Indian citizen.
• Should be 18 years or older.
• Should have at least an 8th-grade education.
• Businesses already availing other government subsidies are not eligible for PMEGP loans.

How to Apply Online

1. Visit the official website of KVIC.

2. Click on the PMEGP option to open the scheme’s page.

3. Select “Apply for New Unit” and fill out the application form.

4. Tick the declaration box and click “Save Application Data”.

5. Once submitted, you will receive a User ID and Password.

Required Documents for Application

• Caste certificate(if applicable).
• Special category certificate(if required).
• Rural area certificate.
• Project report.
• Educational/Skill Development Training certificate.
• Other relevant documents as required

Key Benefits of PMEGP

• 1. Loans up to ₹50 lakh for manufacturing businesses.
• 2. Up to 35% subsidy on loan amount.
• 3. No collateral required for loans up to ₹10 lakh.
• 4. Encourages self-employment and local businesses.
• 5. Implemented by KVIC under MSME Ministry.