{"id":5782,"date":"2020-01-17T06:25:44","date_gmt":"2020-01-17T06:25:44","guid":{"rendered":"https:\/\/www.piczasso.com\/?p=5782"},"modified":"2020-01-17T11:38:20","modified_gmt":"2020-01-17T11:38:20","slug":"pmegp-loan-full-form-benefits-eligibility-features-dont-miss-out-this-post","status":"publish","type":"post","link":"https:\/\/www.piczasso.com\/pmegp-loan-full-form-benefits-eligibility-features-dont-miss-out-this-post\/","title":{"rendered":"PMEGP Loan Full-Form – Benefits, Eligibility & Features: Don\u2019t Miss out this Post"},"content":{"rendered":"

The Prime Minister\u2019s Employment Generation Programme (PMEGP) introduced by the Government of India in the year 2008 is a credit-linked subsidy scheme.<\/p>\n

It is a merger of two other central government schemes, which were – Prime Minister\u2019s Rojgar Yojana and Rural Employment Generation Programme.<\/p>\n

PMEGP primarily focuses on the generation of self-employment opportunities for unemployed youth in rural as well as urban areas. It provides financial assistance in the form of PMEGP loans to eligible applicants to help them set up a new project or business of their own.<\/p>\n

The PMEGP scheme<\/strong><\/a>, its eligibility criteria, loan rates, application procedure and loan limits are administered by the Ministry of Micro, Mini and Small Enterprises. KVIC or the Khadi and Village Industries Commission implements this programme at the national level.<\/p>\n

As for the state level, the programme falls under the State Khadi and Village Industries Boards, State Khadi and Village Industries Commission Directorates, District Industries Centres and various financial institutions.<\/p>\n

Features of the PMEGP loan scheme<\/strong><\/h6>\n

As per RBI guidelines, projects costing up to Rs.10 lakh do not require a security or collateral. Under PMEGP, projects costing more than Rs.10 lakh might require collateral, depending on the terms and conditions set by the lender.<\/p>\n

Other than this, the other features of the PMEGP scheme are-<\/strong><\/p>\n

    \n
  1. Assistance under the scheme is available only for new projects that are yet to be established.<\/li>\n
  2. PMEGP loan details do not specify any income ceiling for setting up new projects.<\/li>\n
  3. Units already availing subsidy from the central or state government are ineligible to avail this loan.<\/li>\n
  4. The per capita investment under PMEGP must not exceed Rs.1 lakh in plain areas and Rs.1.5 lakh in hilly areas.<\/li>\n
  5. The project cost limit set under this scheme is Rs.10 lakh in the service sector and Rs.25 lakh in the manufacturing industry.<\/li>\n<\/ol>\n

    Considering all the features of PMEGP loan, it is a suitable way to get small business finance for new projects.<\/p>\n

    Eligibility criteria required to avail PMEGP loan<\/strong><\/h6>\n

    The following individuals and entities are eligible for PMEGP application-<\/p>