The Ministry of Micro, Small and Medium Enterprises (MSMEs) has launched the Prime Minister’s Employment Generation Programme (PMEGP), which provides subsidies linked to credit for businesses. This program started on March 31, 2008. It brought together the previous Prime Minister Rozgar Yojana (PMRY) and Rural Employment Generation Programme (REGP).
The program’s goal is to give money to entrepreneurs so they can start new small businesses or make their existing ones bigger. The Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Board (KVIB), and District Industries Center (DIC) collaborate to implement the program.
The PMEGP aims to create job opportunities in both rural and urban areas. It does this by supporting entrepreneurs and helping the growth of small and medium-sized businesses. The goal of the program is to increase opportunities for people to work independently. If you are someone who wants to start a business, a PMEGP loan can give you the money you need to start your new project.
Prime Minister Employment Generation Programme Objective
The PMEGP has four main objectives:
- Banks provide financial help to establish new small businesses through the PMEGP program.
- To create jobs in both rural and urban areas of India by establishing new small businesses or projects for self-employment.
- The goal is to help artisans make more money and create more jobs in both rural and urban areas.
- The goal is to bring traditional artisans and unemployed youth from rural and urban areas together so they can create opportunities for self-employment.
- To prevent rural people from moving to cities in search of jobs, we should provide them with stable and sustainable employment opportunities. This is specifically for traditional artisans, prospective artisans, and unemployed youth in rural and urban areas. These individuals often find work in traditional or seasonal jobs but struggle to find employment for the rest of the year.
Interest Rate Charged by Banks Under PMEGP Scheme
The interest rate and subsidy offered under the PMEGP scheme may differ from bank to bank. The specific terms will depend on factors such as the applicant’s profile, creditworthiness, financial stability, repayment capability, business tenure, cost invested, and total project cost.
You can get loans under PMEGP from different eligible financial institutions like SBI, Bank of Baroda, Canara Bank, Bank of India, and other private and public sector banks.
Eligibility Criteria on PMEGP Loan
- The applicant must be at least 18 years old.
- Beneficiaries must have completed at least 8th grade education.
- We only provide assistance for new projects.
- There is no limit on the amount of income you can have to receive assistance for starting projects under PMEGP.
- The person receiving the loan must complete the required EDP training in order to qualify for the loan to be approved and released.
Documents Required for PMEGP Loan
When applying for a PMEGP loan, you will need to provide the following documents:
- Duly filled application form with passport-sized photographs
- Project report
- Applicant’s Identity & Address Proofs
- Applicant’s PAN card, Aadhaar card & VIII Pass certificate
- Special category certificate, if required
- Certificate of Entrepreneur Development Programme (EDP) training
- Certificate for SC/ST/OBC/Minority/Ex-Servicemen/PHC
- Certificate of academic and technical courses, if any
- Any other document required by the Bank or NBFC
How to Apply for PMEGP Loan Online?
If you are looking for information on how to apply for a PMEGP loan online, this part of the article will provide you with a step-by-step guide.
- Visit the official PMEGP website and click on the ‘Apply’ button located under the ‘Application for New Unit’ option.
- Please complete the form that appears and be sure to click on the ‘Save Application Data’ button.
- Remember to write down the application ID and password displayed on the screen.
- Next, click on the ‘Proceed’ button to begin uploading your documents. To upload a document, click on the ‘Upload’ button next to the type of document mentioned. Then, click on ‘Choose File’ and select the file from your computer.
- To upload it, click on the ‘Upload’ button. Use the same process to upload each document one at a time.
- After completing the task, click on ‘Score Card’ to find out the likelihood of you getting the loan.
- Please answer all the questions by checking the checkbox, and then click on the ‘Save’ button.
- Go to the ‘EDP’ section and select how you want to take the training, if you haven’t done so already.
- To complete your application, first click on the ‘Final Submission’ option in the menu bar. Then, click on ‘Final Submission of Application to Sponsoring Agency’.
- Afterwards, you will be given the choice to ‘Print Application’. After printing the form, make sure to attach photocopies of all the documents you uploaded. Then, go to the bank you selected in your form.
To complete your application, you must submit the application form and the required documents to the bank. You will receive a phone call from the bank within approximately 30 to 45 days if your application is approved.