About PMEGP

• • Prime Minister’s Employment Generation Programme (PMEGP) is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME) since 2008-09.
  • It is a major credit-linked subsidy programme aimed at assisting first generation entrepreneurs for setting up micro enterprises in the non-farm sector.
  • At the national level, the Scheme is being implemented by Khadi and Village Industries Commission (KVIC) as the single nodal agency.

• KVIC is a statutory organization under the administrative control of the Ministry of MSME.

• Under the scheme, loans are being provided by all Public Sector Banks, selected Private Sector Banks and Co-operative Banks with margin money subsidy (refers to the amount that the government contributes to beneficiaries availing PMEGP loan) being given by the Ministry of MSME through KVIC.

Scope

• The scheme is applicable to all viable projects in rural as well as urban areas, under the Micro enterprises sector.
• The maximum cost of the project admissible under the manufacturing sector is Rs.25 lakhs and the business/services sector is Rs.10 lakhs.
• Only one person from a family is eligible for obtaining financial assistance under the scheme.
• Assistance under the Scheme is available only for new projects.

Eligible Entrepreneurs / Borrowers

• Any individual, above 18 years of age;
• The beneficiaries should have passed at least VIII standard, for setting up of project costing above Rs.10 lacs in the Manufacturing Sector and above Rs. 5 lacs in the business /Service Sector,
• Self Help Groups; 
• Institutions registered under Societies Registration Act, 1860;
• Production Co-operative Societies;
• Charitable Trusts.