The PMEGP scheme seeks to offer financial aid to self-employment ventures with the goal of creating sustainable employment opportunities for unemployed youth and traditional artisans in both rural and urban areas.
You can also benefit from this scheme as it provides a significant percentage of subsidy on loans. Let us learn all about the Prime Minister’s Employment Generation Programme(PMEGP) through this article.
Eligibility Criteria for Prime Minister’s Employment Generation Programme
- Individuals must be above 18 years old.
- VIII Std. pass required for manufacturing projects exceeding Rs.10.00Lac and service sector projects exceeding Rs.5.00Lac.
- Self Help Groups, Charitable Trusts, Institutions Registered under Societies Registration Act-1860, and Production-based Co-operative Societies.
- There is no income limit for setting up projects.
- Assistance under the scheme is available exclusively for new units to be established.
Prime Minister’s Employment Generation Programme Disbursement Process
The Bank disburses the entire loan amount as approved to facilitate the project setup.
You get the subsidy under Prime Minister’s Employment Generation Programme as per the following:
| Aspect | Manufacturing Sector | Business/Service Sector |
| Maximum Project Cost Admissible | ₹25 lakhs | ₹10 lakhs |
| Beneficiary’s Category | Subsidy | Subsidy |
| Area (Location of Project/Unit) | General Category | Special Category |
| Urban | 15% (Subsidy) | 25% (Subsidy) |
| Rural | 25% (Subsidy) | 35% (Subsidy) |
| Eligible Categories for Special Category | SC/ST/OBC/Minorities/ Women/Ex-servicemen/Physically handicapped/NER/Hill and Border areas, etc. |
The balance amount of the total project cost will be provided by Banks as a term loan.
Prime Minister’s Employment Generation Programme Application Requirement
- Aadhaar card.
- PAN card.
- Project report.
- Caste certificate.
- Special category certificate, if required.
- Rural area certificate (Population certificate)
- Education/ skill development training/ EDP certificate.
- Authorization letter.
Stepwise Process to apply for PMEGP (Prime Minister’s Employment Generation Programme)
- To apply for PMEGP, visit the official website of Khadi Board.
- Go to the homepage and choose ‘online application form for individual’ or ‘online application form for non-individual.’
- Fill in the PMEGP online application with the following details:
- Aadhaar number
- Name exactly as on Aadhaar Card
- Select Agency (KVIC, KVIB, DIC)
- Choose State & District from the drop-down list
- Select Sponsoring Office, Legal Type, and Gender with Date of Birth
- Choose Social Category & Special Category
- Provide Qualification and Address for Communication
- Select Unit Location (Rural or Urban)
- Specify Proposed Unit Address
- Choose activity type (Service or Manufacturing)
- Select Industry and describe the product
- Fill in EDP Training details, including the Training Institute Name
- Provide Details of Loan Required and Bank Information
- Click “Save Applicant Data” to save the details.
- Upload necessary documents after saving the data for the final submission.
- After final submission, receive Applicant ID and password on the registered mobile number.
- KVIC will appraise the application and forward it to the chosen financing bank for credit decision.
- Banks will assess applications technically and financially, sanctioning loans as per revised guidelines.
You should also get Khadi Board Registration for more benefits from KVIC. Learn more about it at: Khadi Board Registration
FAQs: Prime Minister’s Employment Generation Programme
Q1: Does the cost of land factor into the project cost?
A: No, the cost of land is not included in the project cost.
Q2: What components constitute the project cost?
A: The project cost comprises a Capital Expenditure Loan, one cycle of working capital, and 10% of the project cost as own contribution for the General category. For the weaker section, the own contribution is 5% of the project cost.
Q3: Who are eligible beneficiaries under PMEGP?
A: Eligible beneficiaries include Individual Entrepreneurs, Institutions, Co-operative Societies, Self Help Groups, and Trusts.
Q4: Which financial agencies are involved in PMEGP?
A: The financial agencies include 27 Public Sector Banks, Regional Rural Banks (RRB), Co-operative Banks, and Private Scheduled Commercial Banks approved by the respective State Task Force Committee.
Q5: How should the capital expenditure loan be utilized?
A: The working capital should touch at least 100% of the Cash Credit limit within three years of the lock-in period of M.M. and not less than 75% of the utilization of the sanction limit on an average.
Q6: Where should beneficiaries submit their application/projects?
A: Beneficiaries can submit their application/projects online on the KVIC website www.kvic.org.in/kviconline.gov.in/pmegpeportal. The list of office addresses of KVIC/KVIB/DIC is available on the website.
Q7: What defines Village Industry under PMEGP?
A: Village Industry, excluding those in the negative list, refers to any industry located in the Rural Area producing goods or rendering services with or without the use of power. The fixed capital investment should not exceed Rs. 1.00 lakh in plain areas, Rs. 1.50 lakhs in hilly areas, and Rs. 4.5 lakhs for A & N Island and Lakshadweep. You can also read in detail about this at: PMEGP PDF
Q8: How is rural area defined?
A: Any area classified as a Village in the revenue record of the State, irrespective of population, is considered a rural area. It also includes an area classified as a town, provided its population does not exceed 20,000.
Q9: Is there an age limit for PMEGP financing?
A: Any adult beneficiary above 18 years is eligible for financing under PMEGP.
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For any further queries, feel free to contact our experts at: 8881-069-069. Our experts can help you in resolving all your doubts and getting the benefits of the Prime Minister’s Employment Generation Programme.
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