If you’re looking to kickstart your small business but lack the financial resources, the Prime Minister’s Employment Generation Program (PMEGP) offers an excellent opportunity. This credit-linked subsidy scheme provides loans for projects in the manufacturing sector up to Rs 50 lakhs and in the service sector up to Rs 20 lakhs.
While the applicant needs to contribute 5% of the total project cost, the rest is covered by a bank loan. A total of Rs 13,554 crores have been allocated for PMEGP for the financial period from 2021-22 to 2025-26.
### Attractive Subsidy Benefits
One of the key benefits of this scheme is the subsidy it offers:
– **35% subsidy for Rural Areas**
– **25% subsidy for Urban Areas**
For loans up to ₹10 lakhs, applicants do not need to provide any collateral, making the scheme even more accessible.
### Program Objective
The PMEGP aims to empower traditional artisans and unemployed youth by providing them with opportunities to start small businesses. This initiative also helps reduce rural-urban migration by promoting employment opportunities at the grassroots level.
The Khadi and Village Industries Commission (KVIC), operating under the Ministry of MSME, is the sole agency responsible for implementing the scheme.
### Eligibility Criteria for Applicants
– The applicant must be an Indian citizen.
– The applicant should be at least 18 years old.
– The applicant must have completed at least 8th grade.
– Applicants receiving subsidies under other government schemes for the same business are not eligible.
### How to Apply Online
1. Visit the official website of the Khadi and Village Industries Commission (KVIC).
2. Click on the PMEGP section, which will take you to the program’s dedicated page.
3. Click on “Apply” under the “Application for New Unit” section.
4. Fill out the application form with all the required information.
5. Tick the declaration box and click on “Save Application Data.”
6. Once your form is submitted, you will receive a user ID and password.
### Documents Required for Application
– Caste certificate
– Special category certificate (where applicable)
– Rural area certificate
– Project report
– Education, Entrepreneurship Development Program (EDP), or skill development training certificate
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PMEGP is a powerful scheme designed to support budding entrepreneurs and uplift traditional industries. If you meet the eligibility criteria, consider applying to turn your business idea into reality!
https://www.freepressjournal.in/business/pmegp-loan-scheme-50-lakhs-for-small-business-no-collateral-needed-for-loans-upto-10-lakhs