Overview

  • The scheme is being implemented by KVIC at nodal level.  At state level KVIB & DIC.
  • Objectives – to generate employment in Rural as well as urban areas through setting up of new self-employment ventures/projects/micro enterprises.
  • Eligibility: Individuals above 18 years. No income ceiling.
  • For setting up of project costing above Rs.10 lakh in the Manufacturing sector and above Rs. 5 lakh in the Business /Service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
  • Assistance under the scheme is available only for new projects sanctioned specifically under the PMEGP.
  • Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.
  • The maximum cost of projects is Rs. 50 lakh in the manufacturing sector and Rs.20.00 lakh in the service sector. 
  • All existing units financed under PMEGP/MUDRA Scheme whose margin money claim has been adjusted and the first loan availed has been repaid in stipulated time are eligible to avail the benefits of PMEGP 2nd loan for expansion and upgradation. The maximum cost of the project under manufacturing sector for up-gradation is Rs.1.00 crore and Rs.25.00 lakh under Service/ Trading sector.

 

 

Categories of beneficiaries under PMEGP

Beneficiary’s contribution (of project cost)

Rate of Subsidy 

(of project cost)

Urban

Rural

A.  1st loan

General Category 

10%

15%

25%

Special Category (including SC/ST /OBC/Minority/ Women, Ex-servicemen, physically handicapped, NER, Hill and Border areas, Aspirational district, transgender)

5%

25%

35%

B.  2nd Loan

All categories

10%

15% (20% in NER and Hill States)

 

  • Any individual, above 18 years of age can apply.
  • The own contribution of the beneficiary is 10% of the project cost in case of general category and 5% of the project cost in case of reserved category (SC/ST/OBC/PH/Women/Ex Servicemen/ NER) beneficiaries. 
  • Bank will appraise the project and take their own decision on basis of viability of project.
  • No collateral security will be insisted upon by Banks in line with guidelines of RBI for loans upto Rs.10.00 lakh.
  • One-page online application form is mandatory for individuals and institutional beneficiaries on the e-portal. The application form/PMEGP MIS portal is mobile friendly. SMS/e-mail alerts sent to the applicant automatically by the system or by the concerned officials at the process of each stage. 
  • Government of India has introduced online process flow of application and disbursement of Margin Money directly to financing branches. 
  • Model Projects of different KVI activities have been put up on PMEGP e-portal for the benefit of potential beneficiaries. Model Village Industries projects prepared by NSIC have also been linked to the website (www.kviconline.gov.in). 
  • Financing Bank, after disbursement of loan amount shall claim margin money subsidy online through the online portal.
  • Nodal Bank will release the Margin Money subsidy claim to respective financing Bank.
  • Margin Money subsidy should be kept in Term Deposit for 3 years.  No interest will be paid on TDR and no interest will be charged on loan to the corresponding amount of TDR. If advance goes “bad” before 3 years, Margin Money subsidy will be returned.

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