Prime Minister’s Employment Generation Programme (PMEGP): Government of India introduced the Prime Minister’s Employment Generation Programme which is a credit linked subsidy programme. This is the combination of Prime Minister Rojgar Yojana and Rural Employment Generation programme schemes. This is aimed to increase the number of jobs in the country by setting up new micro and medium enterprises. Under this scheme, financial assistance is offered to people based on different criteria. To set up micro, small and medium sized enterprises. Persons belonging to the general category have to contribute 10% amount and SC/ST.OBC, minority, women, physically challenged and few other category people will have to contribute 5% of the amount. General category urban and rural area people will receive a 25% rate of subsidy and other special category rural people will get 35% and urban people will get 25%. The remaining amount for the project will be provided by the banks. This is a term loan and is referred to as PMEGP loan.
Prime Minister’s Employment Generation Programme
Who can apply for the Prime Minister’s Employment Generation Programme?
- Charitable trusts
- Production co-operative societies
- Persons above the age of 18 years and who passed 8th class can seek the PMEGP loan for establishing a manufacturing unit or service unit costing over Rs. 10 lakh and Rs. 5 lakh respectively.
- Self-help groups that have not utilized other benefits under this scheme are also eligible to apply for the loan.
- All the societies that are registered under the Societies registration act, 1860 are also eligible to avail this loan.
- Existing units are not eligible to take a loan under this scheme.