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OBJECTIVE :

• To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures / projects / micro enterprises.
• To bring together widely dispersed traditional artisans! rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.
• To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.
• To increase the wage-earning capacity of workers and artisans and contribute to increase in the growth rate of rural and urban employment.

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FEATURES :

Categories	Beneficiary's Contribution	Margin Money (Subsidy)		Bank Loan
Unit Loacation	-	Urban	Rural	Urban	Rural
General Category	10%	15%	25%	90%	90%
SC, ST, OBC, Minority, Women, Ex-Serviceman, Transgenders, Differently Abled, NER, Aspirational Districts, Hill and Border areas (as notified by the Government)	5%	25%	35%	95%	95%

• Project cost will include Capital Expenditure (except cost of land) and one cycle of Working Capital. Projects without Capital Expenditure are not eligible for financing under the Scheme.
• Assistance under PMEGP is applicable to new viable micro, small enterprises (project cost limited to Rs.50 lacs).
• Normal prevailing rate of interest shall be charged. Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed by the concerned bank / financial institution.
• Banks will claim Margin Money (subsidy) based on sanction of Capital & working capital expenditure of the project.
• Once the subsidy is received by the Bank in favor of loanee, the amount should be kept as Term Deposit Receipt (TDR) within 24 hours in the name of the beneficiary / Institution and for the duration of three years at branch level. No interest will be paid on the TDR and no interest will be charged on loan disbursed to the corresponding amount of TDR.
• In case the Bank's advance goes “bad” before the three years period, due to reasons, beyond the control of the beneficiary, the Margin Money (subsidy) will be returned to the DOI along with interest. In case any recovery is effected subsequently by the Bank from any source whatsoever, such recovery will be utilized by the Bank for liquidating their outstanding dues.
• Margin Money (subsidy) will be 'one-time assistance', from Government of India.
• The timing of subsidy payments is determined by the government, so we cannot provide an exact date for disbursement. However, we will keep you informed and support you throughout the process.

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REQUIRED DOCUMENTS :

Mandatory :

1. Aadhaar Card
2. Pan Card
3. Applicant Photo
4. Mark Sheet / Educational Certificate

If Applicable :

1. Caste Certificate
2. Special Category Certificate
3. Population Certificate

Will be provided by our expert team :

1. Detailed Project Report
2. Application submission to government

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ELIGIBLE UNITS UNDER THE SCHEME :

• New Manufacturing, Service, Agro-based & Primary Agro processing activities, E-vehicle based goods transport and other businesses, single brand service ventures (single brand-based chains, mobile service ventures) sector projects / units, will be eligible under the PMEGP scheme
• Trading Activities :
  1. Business / Trading activities in the form of sales outlets may be permitted in NER, Left Wing Extremism (LWE)-affected districts and A & N Islands.
  2. Retail outlets / Business - selling Khadi products, Village Industry products procured from Khadi and Village Industry Institutions certified by KVIC and products manufactured by PMEGP units and SFURTI clusters only may be permitted under PMEGP across the country.
  3. The maximum cost of the project for Business / Trading activities as above [(a) and (b)] may be Rs.20 lakh (at par with the maximum project cost for Service sector).
• Transport activities : Transport activities viz purchase of Cab Van / Boat / Motorboat / Shikara etc. for transportation of tourists or general public will be allowed.
• Hotels / Dhabas will be allowed.
• Following industries / Business connected with Animal Husbandry will also be allowed :
  • Dairy : Milk and other dairy products through primarily Cows but also sheep, goats, camels, buffaloes, horses, and donkeys.
  • Poultry : Poultry, kept for their eggs and for their meat, include chickens, turkeys, geese and ducks.
  • Aquaculture : It is the farming of aquatic organisms including fish, molluscs, crustaceans and aquatic plants.
  • Insects : including Bees, Sericulture, etc.
  • As a special case piggery, which is a major source of livelihood in NER may also be allowed in NER states only.

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LIST OF NON-ELIGIBLE UNITS :

• Any Industry / Business connected with Meat (slaughtered), i.e., processing, canning and/or serving items made of it as food, production / Manufacturing or sale of intoxicant items like Beedi /Pan / Cigar / Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor, preparation / producing tobacco as raw materials, tapping of toddy for sale will not be allowed.
• Activities prohibited by Local Government / Authorities keeping in view environment or socio-economic factors will not be allowed.
• Manufacturing of polythene carry bags of less than 75 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item which causes environmental problems. Thickness of polythene carry bags shall be governed by the Ministry of Environment, Forest and Climate Change notification for plastic waste management rules and amendments from time to time.
• Any Industry / Business connected with cultivation of crops / plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry will not be allowed. However, value addition under these will be allowed under PMEGP. Off Farm/Farm Linked activities in connection with sericulture, horticulture, floriculture etc. will also be allowed.

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PROCESS FLOW :

• Submit Application with Project Report and other necessary documents
• Nodal Officer will scrutinize the applications
• Eligible applicants will be approved and Forwarded to Banks
• Banks will scrutinize and sanction or reject the proposal depending upon financial and technical viability of the project
• The bank will upload the detailed sanctioned summary report with a copy of sanction letter on the portal.
• Applicants can begin EDP training anytime after submitting the application
• The Margin Money claim will be allowed after loan disbursement

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Apply