Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy programme administered by the Ministry of Micro, Small and Medium Enterprises, Government of India.
Prime Minister’s Employment Generation Programme (PMEGP) : One problem that can arise for those who want to start a new business is financial hardship. That is, they may not be able to find the investment they need. A scheme that benefits such people, the Central Government will provide loans up to Rs 25 lakh, especially without investment security. The repayment period is 5 to 7 years.
The scheme is called the Prime Minister’s Employment Generation Programme (PMEGP)This is a loan linked subsidy scheme. Receive the amount from the bank with the approval of the government. There are two categories, Special and General. SC, ST / OBC, Minorities with Disabilities and Women Ex-Servicemen are in the special category. Under this scheme up to 35% subsidy is available to those in special category in rural areas.
Features : Prime Minister’s Employment Generation Programme (PMEGP)
- Assistance is provided only for starting new units.
- Job availability should be guaranteed at a minimum of Rs. 1 lakh per fixed capital in flat areas and at a rate of Rs. 1.5 lakh per one lakh in hilly areas.
- The subsidy rate ranges from 15% -35% of the total plan outlay.
- Margin of 5% for Special Category (SC / ST) / OBC, Minority, Women, Disabled, Veterans) and 10% for General Category.
- The maximum amount that can be submitted is Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the services sector.
- During the financial year 2015-16, a margin money grant of `1081.61 lakh has been provided for 734 units and 3902 persons have been provided employment.