What is PMEGP Scheme? How can you get it?
Prime Minister Rojgar Yojana and the Rural Employment Program were merged into the Prime Minister's Employment Employment Program or PMEGP in 2008. This step was taken to promote the purpose of the previous two programs to generate employment among the youth. The 2008 program has integrated urban and rural approaches to small business start-ups. Therefore, it contributes significantly to job creation and to economic and national growth. At the National level, the PMEGP is used by the Khadi and Village Industry Commission or KVIC. Many KVIC boards and directors use the program at the state level. Funds are disbursed to beneficiaries through selected banks. Under the PMEGP program, by investing only 5% to 10% of the total project cost, beneficiaries can receive up to 35% of funding.
The objectives of the Prime Minister's Employment Generation Programme (PMEGP)
The PMEGP has four objectives:
1. Creating jobs in rural areas, as well as in cities in India by establishing new businesses or projects.
2. To provide a coherent foundation for the dispersed traditional artists and unemployed youth in rural and urban areas to come together and create a mechanism for self-employment.
3. Taking steps to stop the migration of people from rural areas to cities in search of jobs by providing them with stable and sustainable jobs. This is especially true for indigenous and future artisans and unemployed youth in rural and urban areas who find traditional or part-time work and remain unemployed throughout the year.
4. To increase the earning capacity of artisans and focus on increasing employment growth in rural and urban areas.
The interest rate and support provided under the PMEGP program from different financial institutions will vary from bank to bank and will depend on the applicant profile, business viability and project costs. Loans under the PMEGP can be obtained from various qualified national banks such as SBI, Bank of Baroda, Canara, Bank of India and other private and public sector banks and NBFCs.
One can apply for PMEGP on the official website of the Prime Minister's Employment Generation Programme for both individual and non-individual applicants.
PMEGP Eligibility criteria
PMEGP loans are provided to individuals and organizations that meet the terms of such a term loan. The list of eligible businesses that can apply for a loan under PEMGP is outlined below:
• People, over the age of 18; the beneficiary must have studied and passed at least section 8 if he or she wants to establish a production unit costing more than R. 10 lakh or service unit costing more than Rs. 5 lakh and PMEGP loans
• Self-help groups can also take out a PMEGP loan as long as they do not receive any other benefits under this program.
• Organizations registered under the Public Registration Act, 1860
• Production Collaborative Organizations
• Trusts of charities
There is no income for this loan. The PMEGP loan is only granted to new units and is not available for existing units established under the PMRY, REGP or another government program. In addition, any unit that has received funding under any other program is not eligible for a PMEGP loan.
Financial assistance under the PMEGP
The scheme provides financial assistance to individuals according to different terms. However, as the program includes small, medium and micro enterprises (MSMEs), there is some clarification on the number of eligible projects and the size of the loans offered. The amount of contribution required by the borrower is 10% in the general category and 5% in the special categories, such as SC / ST / OBC, minority, women, defense personnel, physical persons, persons from the North East region, hills and border areas, among others . The level of funding will be 15% of the general category in urban areas and 25% in rural areas. In the specialized categories of people, government subsidies will be 25% of urban areas and 35% of rural areas.