Prime Minister Employment Generation Programme (PMEGP) |Term loan and subsidy to Self Help Groups of Other Backward Class entrepreneur for new service units

Operated by
Ministry of Micro, Small & Medium Enterprises - ARI Division - Khadi and Village Industries Commission, Central Government
Purpose 
To generate employment opportunities through setting up of new self-employment ventures/projects/micro enterprises, by providing term loan and subsidy to Self Help Groups of Other Backward Class (OBC) entrepreneurs.
Probable duration
Start Date: 1st April, 2008 End Date :

Eligibility

  •  Beneficiary should be Class 8 pass and above 18 years of age

  •  Beneficiary should be from Other Backward Class (OBC) category

  •  Only new projects can be sanctioned 

  •  Project costing should be Rs5 Lakh

  •  Units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible

Benefit Description

Prime Minister Employment Generation Programme (PMEGP) - Term loan and Financial subsidy to Self Help Groups who have Other Backward Class (OBC) entrepreneur for setting up new service units in Urban Areas

Application process

Appilication form is given on the page 23-24 of the PDF which can be retrived from the following link : http://www.kviconline.gov.in/pmegp/pmegpweb/docs/pdf/PMEGPscheme.pdf

Other Details

Conditions if Any
  • The maximum cost of the project/unit admissible under service sector is Rs.10 Lakh
  • Bank will finance Capital Expenditure in the form of Term Loan and Working Capital in the form of cash credit. Project can also be financed by the Bank in the form of Composite Loan consisting of Capital Expenditure and Working Capital.
  • Normal rate of interest shall be charged. Repayment Scheduled may range between 3 to 7 years after an initial moratorium as may be prescribed by the concerned bank/financial institution.
More Information
Annexure Link: -
Link: 
# Refer to page no. 1-22 of the PDF which can be retrived from the following link: http://www.kvic.org.in/PDF/PMEGPscheme.pdf

File: -