The Prime Minister’s Employment Generation Program (PMEGP) is an employment-creating scheme run by the Ministry of MSME. It was started in 2008 and gives benefits of up to 35% of the entire cost of the project. The government will finance up to Rs. 20 lakh in project expenses for service companies and Rs. 50 lakh for industrial units.
The PMEGP plan is designed to improve the financial system, generate jobs, and assist those who wish to start their businesses. It’s a method that helps people while also improving finances, particularly in a country where startups are necessary.
PMEGP looks to generate employment opportunities for both rural and urban regions by assisting small enterprises in growing. The primary purpose of the scheme is to increase self-employment options.
PMEGP
The PMEGP helps entrepreneurs and grows the micro, small, and medium business sectors by providing job opportunities in both urban and rural areas. The main purpose is to enhance options for self-employment. The scheme offers financial assistance to innovators who search to create new or develop current small enterprises.
The scheme is implemented together with the Khadi and Village Industries Commission (KVIC), the State Khadi and Village Industries Board (KVIB), and the District Industries Centre (DIC).
PMEGP Scheme
The PM Employment Generation Program, or PMEGP Scheme, looks to help generate employment opportunities in both rural and urban regions by developing small enterprises. Businesses that have previously received government support under other schemes are ineligible.
The PMEGP scheme rates of interest and subsidy granted by various banks as part of the PMEGP plan might differ based on specifications like the applicant’s credit profile, financial standing, financial security, repayment capabilities, company experience, investment expenditure, and overall project budget.
PMEGP Eligibility
You must meet specific qualifying requirements to apply for the PMEGP. The following are the primary requirements.
- You must be an Indian permanent resident.
- Have finished at least eighth grade in school.
- You must be at least 18 years old.
- The scheme was created for jobless people who want to create their own businesses. While asking for a loan, you should avoid participating in any government or private sector organization.
- Make sure your project will not cost more than 25 lakhs in the manufacturing industry and 10 lakhs in the service-related sector.
PMEGP Required Documents
Some specific documents are required as part of the loan application procedure under the PMEGP Scheme. When applying for a loan, the following documents must be submitted.
- A complete report that includes financial estimations, market research, and business details.
- Check that the application form is filled out correctly.
- Provide current passport-sized photos.
- Submit an authorized document of identification, such as an Aadhar card, PAN card, driver’s license, voter ID, and so on.
- Give address verification, such as an electricity bill, phone bill, or property tax receipt.
- Provide a certificate verifying your rural status, if applicable.
- Specify the project’s budget and funding sources in detail.
- Provide certificates for categories such as SC, ST, OBC, Women, Ex-servicemen, and mentally issued if applicable.
- Give the partnership agreement if the project requires collaboration.
- Submit your most recent six-month bank statement.
PMEGP Online Application Registration Process
When compared to the previous offline method, the PMEGP online application system provides several advantages. For starters, you do not need to provide documents, which saves both effort and time manually.
Candidates may simply do everything within the convenience of their own homes or businesses. Also, the online method provides accessibility and avoids the possibility of mistakes or missing information.
You can use the PMEGP online application website; you must first register on the official PMEGP website. To finish the registration procedure, follow the instructions below.
- Go to the PMEGP’s official webpage at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp
- On the website, look for the ‘New Registration’ button and click it to set up a new account.
- Submit the registration form by entering your name, email address, phone number, and any other necessary details.
- Set your account’s username and password. Make sure that this information is kept safe.
- Submit the registration application after entering all of the necessary details.
- Then, you will be sent an email with an activation link. Open the email and click the activation link.
- To activate your account, follow the instructions in the email.
- Once your account has been activated, log in with the username and password you created during registration.
How to Apply PMEGP Loan
You can start the application procedure now that you have successfully registered on the PMEGP website. To apply for your PMEGP online application, follow the steps listed below.
- First, log into the PMEGP web portal at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp using your registered username and password.
- Provide all relevant project information, such as the project name, activity, sector, and location. Submit an extensive overview of your company concept and the targets that you want to get.
- Check to be clear on how much money you need for your business. Find out that the amount asked for is within the specified limitations for the kind of action and region.
- Enter your bank account information, such as the account number, branch name, and IFSC code.
- Give an accurate cost estimate for the project. Provide costs such as land, raw materials, machinery, and operating resources.
- Provide the required documents, which must contain verification of identification, address, project report, caste certificate, academic certificates, passport-sized pictures, and bank account information.
- Once check all of the details provided on the application form.
- Finally you can submit the application after giving all the required details.
- After completing the application successfully, you will get a confirmation message with a reference number.
PMEGP Login
The Prime Minister Employment Generation Program (PMEGP) Login function allows registered users to access their accounts on the PMEGP website. Follow the steps to log in to your PMEGP account.
- Visit the PMEGP’s official website at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp
- On the website, look for the ‘Registered Applicant Login’ option.
- Enter your user ID and password, and click the submit button.
- Now, you can successfully log in to your PMEGP account.
Benefits of PMEGP
- The plan gives financial help to new businesses, particularly small to medium-sized businesses.
- Using the NSIC’s ‘Performance and Credit Rating Scheme’, Micro and Small Enterprises are given the freedom to select any selected rating company for their review. This rating improves their confidence and also their chances of getting timely and reasonable loans from banks.
- MSMEs can improve their commercial and technical abilities by receiving ratings from recognized National Small Industries Corporation (NSIC) organizations.
- Banks will fund the remainder of the entire project’s expenses in the form of a term loan along with working capacity.
- The highest acceptable cost of a project in the manufacturing industry is Rs 25 lakhs, whereas it is 10 lakhs rupees in the business/service industry.
Nature of Assistance
The following list is a few of the more important details related to the type of financial assistance provided by a PMEGP loan.
- The subsidy rates under the Prime Minister’s Employment Generation Program (PMEGP) are different based on the recipient category and the project location:
- General Category: A subsidy of 15% in urban areas, and rural areas receive a 25% subsidy.
- Specialty Groups: Subsidy of 25% in urban areas and subsidy of 35% in rural areas.
- Special categories include SC/ST/OBC/Minorities/Women, Ex-servicemen, Physically Handicapped, North Eastern Region, Hill and Border locations, and so on.
- This financial system plans to assist entrepreneurs in founding and growing their businesses.
How to apply for PMEGP?
You can apply for the PMEGP loan online application process by following the instructions below.
- First, select a project that is eligible for PMEGP financing. Check the PMEGP website for a list of qualified businesses and activities.
- Create a thorough project report (DPR) that details your company concept, market opportunity, financial expectations, and other necessary details.
- After that, go to https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp# to access the PMEGP website.
- On the webpage, select ‘online application form for person’ or ‘online application form for non-individuals.’
- After completing all of the necessary details, click on the ‘Save Applicant Data’ option to keep the information.
- Then, you must upload the required documents after clicking ‘Save Applicant Data’ to finish the application.
- Finally, the application ID and password will be sent to your stated phone number.
PMEGP Scheme Application Form Online Process for Individuals
People can apply for the PMEGP Scheme application online by following the instructions below.
- Go to the official Prime Minister Employment Generation Program (PMEGP) webpage at https://www.kviconline.gov.in.
- Locate and click on the PMEGP tab on the homepage.
- Then, you will be sent to the official PMEGP webpage. Select ‘Online Application Form for Individual’ from the drop-down menu.
- The application form will be displayed on the screen.
- Enter all the necessary details, like your Aadhaar card number, qualifications, address, taluk, phone number, email, PAN number, activity type, etc.
- Give your banking information, like your account number and IFSC code.
- After saving all of the details, press the ‘Save Applicant Data’ button.
- Submit the required documents listed on the online application form.
- Press the ‘Submit’ option to finish and send your application.
- Finally, the User ID and password will be emailed or message to your registered email address or mobile phone number.
Existing PMEGP Loan Application Process
Users may apply for the existing PMEGP Scheme application online by following the steps below.
- The official PMEGP website may be found at https://www.kviconline.gov.in.
- To reach the application page, use this direct URL at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp.
- Look for and select the “Application for Existing Units (2nd Loan)” link on the web page.
- Select ‘Online Application” from the option list.
- You will be sent to the application form page.
- Enter the correct information depending on your first loan application. Press the’ Next’ button after entering your application ID, Aadhaar number, and PAN number.
- Fill out the next application form with all of the relevant information and upload the necessary documents with the application.
- Check the full application form to confirm that all information is correct and up to date.
- Finally, press ‘Submit’ to finish and apply for your loan.
PMEGP Scheme Application Form Online Process for Non-Individual
- Go to https://www.kviconline.gov.in, the official Prime Minister Employment Generation Program webpage.
- After, search and select the PMEGP link in the navigation on the homepage.
- On the new page, choose the ‘Online Application Form for Non-Individual’ option.
- Then, select the proper organization category for your application from the list, such as Self Help Groups, Trusts, and Registered Organizations.
- Provide the application form with specific details about your organization and bank account information.
- After entering the necessary details, press Save Applicant Data’ to verify that all of your activity is saved.
- Next, submit the documents you need to the application form following the directions provided.
- Lastly, press the ‘Submit’ button to send your loan application to the processing department.
PMEGP Loan Application status
To check the status of your PMEGP loan application, follow the instructions below.
- Visit the official PMEGP website at https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp.
- On the webpage, select the ‘Applicant Track’ option.
- Then select the ‘Application Status’ or ‘Loan Disbursement Status’ option.
- Submit the required details, like the application number, date of birth or phone number, and the verification code displayed on the website, into the relevant fields.
- Now, you can check the status of your PMEGP loan by clicking the ‘Submit’ button.
Eligible Caste or Category applicants
There are allowing castes or categories for PMEGP applicants provided below.
- SC, ST (Scheduled Tribes)
- OBC (Other Backward Classes)
- Disabled people
- Minority category
- Former serviceman
- Northeastern state people
Who can get a PMEGP loan?
All Indian residents over the age of 18 who have an effective company understanding and satisfy the eligibility conditions are eligible for the PMEGP. Citizens from the SC/ST/OBC/Minority communities, women, ex-servicemen, handicapped people, and others are given particular priority and requirements that are reduced.
What are the PMEGP loan repayment periods?
The payback periods for the PMEGP loan are different based on the project and the finance company. Loan repayment periods commonly are different from 3 to 7 years, such as an inactivity period.
How can I check the progress of my PMEGP application?
Applicants can follow the status of their PMEGP application by logging into their PMEGP account on the official website and going to the application status area. They may track the status of their application and also get any updates given through the PMEGP department.
Can I apply for several projects for my PMEGP loan application?
You will not be able to apply for more than one project for a loan application.