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    PMEGP Scheme: Eligibility, Benefits and Application Process

    prime minister employment generation programme pmegp
    (Source: grainmart)

    To generate self-employment opportunities among unemployed youths and artisans, the Government of India has introduced the Prime Minister Employment Generation Programme or PMEGP scheme.

    Curious about the benefits, eligibility criteria and other information of this scheme?

    Read on to develop thorough knowledge about PMEGP scheme details.

    What Is Prime Minister Employment Generation Programme (PMEGP)?

    Introduced in 2008, the Prime Minister Employment Generation Programme is a credit-linked subsidy programme of the Government of India. This scheme is a merger of two schemes named   Pradhan Mantri Rojgar Yojana and Rural Employment Generation Programme.

    The Ministry of MSME administers this PM Employment Generation Programme. At the national level, it is implemented by the Khadi and Village Industries Limited (KVIC). At the state level, it is implemented through State Khadi and Village Industries Boards (KVIBs), State KVIC Directorates, District Industries Centres (DICs) and banks.

    Here, KVIC process government subsidies through registered banks for disbursal to the beneficiaries or entrepreneurs directly into their bank accounts.

    Objectives of the Prime Minister's Employment Generation Programme

    The Prime Minister's Employment Generation Programme (PMEGP scheme) is introduced to resolve certain objectives. These are discussed below -

    • Offer sustainable and continuous self-employment opportunities in both rural and urban areas of the country.
    • Encourage financial institutions to increase credit flow to the micro sector.
    • Provide employment opportunities to traditional artisans and unemployed youth to reduce migration rates from rural to urban areas.

    Features and Benefits of Prime Minister's Employment Generation Programme

    Below are some of the beneficial features of the PMEGP scheme. These include -

    1. Sector-specific Financial Assistance

    Manufacturing sectors and business/service sectors can get the project cost of a maximum of ₹ 25 lakh and ₹10 lakh, respectively.

    2. Area-specific Financial Assistance

    • Individuals belonging to the general category residing in an urban area can get 15% of total project cost. On the other hand, individuals belonging to the general caste residing in a rural area can receive 25% of the total project cost.
    • Individuals belonging to special category i.e. OBC/ Minorities/Women, Physically, handicapped, Ex-servicemen, NER, or residing in Hill and Border areas, etc., can receive 25% (urban) and 35% (rural).

    Note: Banks will provide the rest of the total project cost in the form of term loans and working capital.

    Eligibility Criteria of Prime Minister's Employment Generation Programme

    To avail of the financial assistance offered under the PMEGP scheme, individuals have to fulfil certain eligibility parameters. These include -

    • Individuals above 18 years of age are eligible for this scheme.
    • Individuals involved in a project worth over ₹ 10 lakh in the manufacturing sector and ₹5 lakh in the business or service sector must have an education qualification of 8th standard.
    • Self Help Groups, including individuals belonging to BPL category (provided they have not received benefits from another scheme), can opt for this scheme.
    • Financial assistance under this scheme is available for only new projects.
    • Production Co-operative Societies, Charitable Trusts and institutions that are registered under Societies Registration Act, 1860 can apply for the PMEGP scheme.
    • Existing Units that have availed benefits from schemes under REGP, PMRY, or any other scheme of Government of India or State Government or units that have availed benefits under any Government of India or State Government schemes are not eligible for this scheme.

    Online Steps to Apply for Prime Minister's Employment Generation Programme

    To complete PMEGP online application process, you have to visit the official website of Prime Minister's Employment Generation Programme and follow the steps mentioned below,

    • Step-1: Click on “PMEGP” under “Online Applications”. Next, click on 'PMEGP Portal’ on the new webpage.
    • Step-2: Click on “Online Application Form for Individual”. After filling out the form with the required details, click on 'Save Applicant Data'.
    • Step-3: Finally, upload all required documents to complete this process.

    Upon successful application, you will receive an application ID and a password on your registered mobile number.

    Individuals willing to complete PMEGP online registration must fill out a form available at the official website. Then, they have to submit the form to complete the registration process.

    What Are the Documents Required for PMEGP Scheme?

    Here is a list of important PMEGP loan documents that applicants need to keep handy while applying for the same.

    • PAN Card
    • Aadhaar Card
    • Caste Certificate
    • Special Category Certificate (if any)
    • Project Report
    • Certification of qualification- academic and technical (for project cost of above ₹10 lakh under the manufacturing sector and of above ₹5 lakh under business/service sector)
    • Authorization Report

    How to Check the Application Status for PMEGP Scheme?

    To check PMEGP online application status, you have to visit the official website of Khadi & Village Industries Commission and follow the steps mentioned below,

    • Step-1: Click on “PMEGP”. You will be redirected to a new page and select 'PMEGP PORTAL' from the available two options.
    • Step-2: Click on “Login Form for Registered Applicant”. Enter “User ID” and “Password” and click on “Login”.
    • Step-3: Lastly, click on “View Status” to check PMEGP application status.

    Hopefully, the above discourse on PMEGP Scheme has helped you understand its benefits and eligibility criteria in detail. Now, you can easily follow the application process to enjoy the advantages of this scheme.

    Frequently Asked Questions

    ✓ Can Regional Rural Banks provide PMEGP loans?

    Yes, Regional Rural Banks can provide PMEGP loans.

    Yes, Regional Rural Banks can provide PMEGP loans.

    ✓ Do applicants need to provide collateral or any third party guarantee to avail loan under the Prime Minister's Employment Generation Programme?

    No, applicants need not provide collateral or any third party guarantee to avail loan under Prime Minister's Employment Generation Programme.

    No, applicants need not provide collateral or any third party guarantee to avail loan under Prime Minister's Employment Generation Programme.

    ✓ Do all beneficiaries of PGEMP need to take the training?

    Yes, all the beneficiaries have to take training for 2 weeks.

    Yes, all the beneficiaries have to take training for 2 weeks.

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    Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

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    Last updated: 2022-06-15

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