The scheme aims at providing financial assistance to self-employment ventures, in order to generate sustainable employment opportunities for unemployed youth and traditional artisans in rural and urban areas.
Bank-financed subsidy program for setting up new micro-enterprise in non-farm sector.
Margin Money subsidy on Bank Loan ranges from 15% to 35% for projects up to Rs. 50 Lakh in manufacturing and Rs. 20 Lakh in the service sector.
For special category beneficiaries such as SC/ST/Ex-Servicemen/NER/Women/PH/Minorities, the money subsidy margin is 25% in urban areas and 35% in rural areas.
SCHEME APPLICABLE FOR
Individuals above the age of 18 can apply for this scheme.
Other beneficiaries can be Institutions registered under Societies, Self Help Groups, Charitable Trusts and Production Co-operative Societies.
The own contribution for beneficiary belonging to the general category is 10% of the project cost and 5% of the project cost in cases of special category.
Upon the approval of the loan, banks sanction and release the amount of 90% – 95% of the total project cost, allowing the beneficiaries to set up units for operations.
Support events like EDP training, awareness camps, etc are held to provide Backward & Forward Linkages, in order to attain sustainability of the projects under the scheme.
Government of India has facilitated online processing of applications and allocation of Margin Money directly by the financing branches.
The e-portal’s online one-page application form is fixed requirement for institutional as well as individuals. The PMEGP MIS portal and the application form are mobile friendly, allowing e-mail/SMS notifications to the applicant at each stage of the application process.
PMEGP e-portal also displays model projects of various KVI activities.
PMEGP e-portal is also linked to with the Model Village Industries projects by the NSIC.
For the increase and ease in registrations of the MSMEs, the Government of India has recommended PMEGP to adopt the Udyog Aadhar Memorandum (UAM) for online registrations.