PMEGP Scheme
ELIGIBILITY FOR PMEGP SCHEME :-
The applicant must be a citizen of India
- The age of the applicant should be more than 18 years.
- Applicant must have passed at least 8th class.
- Under this scheme, loan is given to only start a new business.
- If any member in the family is taking benefit of PMEGP then no other member of the family can take benefit of this scheme. (One time Scheme)
SUBSIDY RATE IN PMEGP SCHEME:-
SUBSIDY RATE IN PMEGP SCHEME | ||
Categories of beneficiaries under PMEGP | Categories of beneficiaries under PMEGP | Rate of Subsidy (of project cost) Urban rural |
General category | 10% | 15% 25% |
Other category(st, sc, obc, ews) | 5% | 25% 35% |
| CATEGORIES OF BENEFICIARIES UNDER PMEGP | Cost | Urban | Rural |
| General category | 10% | 25% | 15% |
| other category (ST, SC, OBC, EWS) | 5% | 35% | 25% |
NOTE:-
- Maximum cost of Project/unit for Margin Money Subsidy
- Manufacturing Sector: Rs. 50 lakh and maximum subsidy would be Rs. 17.50 lakh
- Business/Service Sector: Rs. 20 lakh and maximum subsidy would be Rs.7 lakh
- The Balance amount of total project cost is provided by Bank
- If the total Project / Unit Cost exceeds Rs.50 lakh and Rs.20 lakh for manufacturing and Business / Service sector respectively, the balance amount may be provided by Bank without any Government Subsidy.
SECOND LOAN FOR UP-GRADATION OF EXISTING PMEGP/REGP/MUDRA UNITS:-
Categories of beneficiaries under PMEGP (for upgradation of existing units) | Beneficiary’s contribution (of project cost) | Rate of Subsidy (of project cost) |
All categories | 10% | 15% (20% in NER Hill States) |
NOTE:-
- Maximum cost of Project/unit for Margin Money Subsidy for up gradation
- Manufacturing Sector: Rs. 1.00 crore and maximum subsidy would be Rs. 15 lakh (Rs.20 lakh for in NER and Hill States)
- Business / Service Sector: Rs.25 lakh and maximum subsidy would be Rs.3.75 lakh (Rs.5 lakh for in NER and Hill States)
- The Balance amount of total project cost is provided by Bank.
- If the total Project / Unit Cost exceeds Rs. 1.00 crore and Rs. 25 lakh for Manufacturing and Business / Service sector respectively, the balance amount may be provided by Bank without any Government Subsidy.
| CATEGORIES OF BENEFICIARIES | BENEFICIARY’S CONTRIBUTION (OF PROJECT COST) | RATE OF SUBSIDY (OF PROJECT COST) |
| All Categories | 10% | 15% (20% in NER Hill States) |
REQUIRED DOCUMENTS FOR PMEGP SCHEME: -
- Aadhar card, Pan Card
- Latest electricity bill
- Higher education certificate
- Latest passport size photo
- Last 3-month-old bank statement
- Contact no (registered with Aadhar No), Email-id
- Certificate for SC/ST/OBC/Minority/Ex-Servicemen/PHC
- Project report
- Experience certificate (if any)
- Rural area certificate (if any)
STEP BY STEP PROCESS UNDER PMEGP SCHEME:-
- Conceive a business idea to Start a new Business in the Manufacturing or Service sector.
- Identify a suitable location, building, plant & machinery etc. for your business.
- Make a Project Report/ Business Plan, so that you can enter the details in the application.
- Apply online on PMEGP Portal.
- Participate in the interview by DLTFC (District Level Task Force Committee) who will evaluate your project and if found eligible, will forward it to the banks concerned.
- Contact the bank with relevant documents and convince them about the potential of the project, so that they will sanction the loan and you have to deposit the beneficiary’s contribution.
- You have to attend a mandatory EDP TRAINING (FREE) for 5 days to 12 days.
- You will get the subsidy/margin money on the production of the training certificate at the bank. The Bank will keep the subsidy amount in a TDR (Term Deposit Receipt) for 3 years.
- The subsidy will be credited to your account only after three years of the first disbursement, after ensuring the unit is still working. Still, you don’t need to pay interest on this amount from the receipt of the subsidy.
BUSINESS CATEGORIES COVERED UNDER PMEGP SCHEME:
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Argo based food processing |
Forest-based products |
Cement and allied products |
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Mineral –based products |
Dairy and milk-based products |
Horticulture- Organic Farming |
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Handmade Paper and fiber
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Plastics and allied products |
Service Sector Industry |
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Small Business Model
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Textiles and apparel |
Waste Management |
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Rural engineering and bio-tech
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Service and Textiles |
Grain milling and Processing |
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Fast moving consumer goods |
Electronic and Electrical Equipment |
Cold storage and cold chain storage |
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Metal and alloy |
Mall business models |
Automobile industry |
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Textile& apparel |
Core based products |
Surgical and medical industry |
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Paper & Allied |
Organic & Horticulture farming |
Computer and IT Industry |
| CATEGORIES | |||
| Argo based food processing | Forest-based products | Cement and allied products | |
| Mineral –based products | Dairy and milk-based products | Horticulture- Organic Farming | |
| Handmade Paper and fiber | Plastics and allied products | Service Sector Industry | |
| Small Business Model | Textiles and apparel | Waste Management | |
| Rural engineering and bio-tech | Service and Textiles | Grain milling and Processing | |
| Fast moving consumer goods | Electronic and Electrical Equipment | Cold storage and cold chain storage | |
| Metal and alloy | Mall business models | Automobile industry | |
| Textile& apparel | Core based products | Surgical and medical industry | |
| Paper & Allied | Organic & Horticulture farming | Computer and IT Industry | |
| Argo based food processing | Forest-based products | Cement and allied products | |