PMEGP scheme
India got freedom in the year 1947. But the phase after freedom was a tough one. India as a nation had to face several issues. Overpopulation is one of the major problems. As time passed by, cities have grown. With the city’s growth, even businesses have grown. This progress led to the concentration of the people. As a result, the youths of the village moved to cities.
Along with the growth of cities, villages became empty. Hence, the problem of regional imbalance occurred. Now the government had to deal with a new problem. That is the migration of youths from villages. So, the government took many steps to combat this problem. The PMEGP project is one of them.
Introduction of PMEGP Scheme
The full form is Prime Minister Employment Generation Program. They started this program on 31st March 2008. This is program is formed by merging two existing plans. Those two programs are PMRY and REGP. The PMRY full form is Prime Minister Rozgar Yojana and The REGP full form is Rural Employment Generation Programme. The merging of these two plans is done since both have similar goals. Hence it will help to concentrate on a single scheme. Both schemes having the goal of employment generation. Hence the merging decision is correct.
PMEGP scheme Key Features
The ambitious scheme of the Government has some unique features. So, by knowing the feature helps to understand the whole scheme. Let us look into those details.
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Administration
The government has vested the management of this scheme in the hands of KVIC. The full form of KVIC is Khadi and Village Industries Commission. However, this scheme is jointly monitored by the government and MSME. Micro Small and Medium Enterprises is the full form of MSME.
The KVIC is managing this scheme at a national level. Where in state and district level KVIC directorates and boards managing the scheme.
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PMEGP Subsidies
The scheme is working on subsidies. This scheme is a credit-linked subsidy provided to boost employment in youths of the country. With this, it is aiming at giving a boost to the economy. The subsidy amounts will reach the candidates through the banks. As a result, the misuse of the funds will be stopped.
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Credit facility
To start anything capital is the basic need. Without money, many things will not happen. Thousands of people have many great ideas. But to execute any plan money is required. This scheme helps to meet that need. So, here talent meets the right capital.
The scheme is working on subsidies. This scheme is a credit-linked subsidy provided to boost employment in youths of the country. With this, it is aiming at giving a boost to the economy. The subsidy amounts will reach the candidates through the banks. As a result, the misuse of the funds will be stopped.
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Applicability
The Prime Minister Employment Generation Program is valid in both urban and rural areas. The medium and small-scale industries are allowed for the benefits. Hence it helps both urban and rural people. As a result, all needy people get credit. But they must be eligible for this plan. So, this scheme is inclusive. And it does not separate on the basis of region. These are the salient features of the scheme. Apart from these, there are other vital features. You can find those features below.
There will be no income maximum for setting up the project. The help under the proposal is presented only to new units. So, current units are not suitable for grants. Any manufacturing together with Coir Based projects excluding those mentions in the unhelpful list. Per capita venture should not go beyond Rs. 1.00 lakhs in plain area and Rs. 1.50 lakhs in undulating areas. The maximum. The venture cost of Rs. 25.00 lakhs in the manufacturing sector and Rs. 10.00 lakhs in Service Sector.
Benefits of PMEGP scheme
This program is done by merging the two other programs. Hence, it has to have more benefits. The great news is it has many of them. So, let us look at the major benefits.
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Employment Generation
The main aim of the Prime Minister Employment Generation Programme is to create jobs. By providing the loan it creates jobs. As you are aware the loan offered for both industrial and service sectors. As a result, the jobs will generate in both sectors. Many new ventures will start and so the jobs along with that.
Till today the jobs created till today were more than 2 million. This program has able to achieve its goals. More than 3 lakh people getting the advantage of this plan.
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Employment across the regions
This is the national level scheme. So, it applies to all regions of the nation. This program is not limited to rural areas. It helps the people of urban too. As a result, the needy person gets the PMEGP loan all over the nation. So, this program is free from area limits, hence the eligible units get the PMEGP loan.
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Sustainable Employment
There are many more plans planned to create employment options. The creation of mere one-time jobs is not helpful. The constant jobs are important for the people. The jobs formed under this project are long term jobs in nature. Hence it creates a sense of security for the people.
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Population concentration Control
A total of 1.3 billion people is living in this country. But the dispersal of this population is uneven in the country. The number of people living in a square km is called population density. This density is varying all over the country. As per the 2011 census, Delhi has the highest density. It has 9340 people per kilometer. But in Arunachal Pradesh, it is just 17 people per kilometer. This is the state-wise details. This clearly shows that cities have more concentration of the people.
The supply of credit helps in the setup of new businesses in rural regions. As a result, the number of people counts in the cities will reduce. Hence it able to achieve its goal.
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Encouragement for micro industries
The nation needs both macro and micro industries. The big business provides the jobs in huge numbers. However, we cannot able to ignore the micro sector. It helps to give jobs in rural areas. The micro industries are the industries that have less than 25 lakh rupees. So, under this scheme credits are offered for the micro sector also.
To boost the economy both micro and macro sectors have to go hand in hand. The absence of anyone sector causes a loss for the nation. As a result, this is helpful to attain the balance between all sectors.
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Support for artisans
This nation was the home of many artisans. Till the rule of British this land known for its crafty works. The rule of the British has introduced the industrial revolution. It led to the destruction of small industries. As a result, many artisans lost their jobs.
The bad thing is the famous handicraft of the nation is disappeared. As a result, thousands of people lost their jobs. The introduction of this scheme gave hope for all the artisans. This scheme helps for the revival of famous arts and handicrafts. The project nourished and gives jobs for artisans. These kinds of jobs need small support to grow. And that support is provided from this scheme.
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Prevents migration of people to cities
In the nation, we can see a big variance in the living population in cities and rural. As per the 2011 census, in cities 69 percent of people living. On the other hand, only 31 % of people are living in rural areas. The important thing is there is a big difference in the area. The rural region is more, and cities have less. Even in this state cities have more population. The root cause of this problem is employment.
The people from rural areas dwell in cities. They do the migration in the search of jobs. The cities provide more jobs. As a result, people leave their villages and settle in cities. Thus, by providing jobs in rural areas help to counter this big problem. With the creation of jobs in villages, people live there, and migration will reduce.
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Transparent distribution of money
The mode of paying credits to people is very important. The nation is haunted by the problem of corruption largely. The people have the belief that a large share of the amount wasted in corruption. The amount reduces in each stage because of the corruption.
So, this scheme has countered this issue. The scheme is 100% transparent. Because the money will reach the final recipient through bank accounts. To avail of the services, each person must open a bank account. Hence the money will reach the intended people. That too in full. As a result, it served two objectives. Firstly, it removes the fraud from the system. Secondly, the loan directly goes to bank accounts.
More about the PMEGP scheme
So, apart from the features and advantages, it has other vital aspects. Let us look at those.
PMEGP Loan Details
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Amount of Loan under PMEGP
The manufacturing sector will get a maximum of 15 lakh rupees of credit. The service sector can get up to 10 lakh rupees. It is fixed for both urban and rural areas.
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Self-Investment
The self-investments vary from place to place. Self-investment for the units to be established in the plain area is a maximum of 1 Lakh. For the hilly areas, it is a maximum of 1.5 lakhs. That means the per capita investment is fixed.
There is an exception in the rules in certain things. There is a letup for people belonging to SC/ST, women, Physically challenged, ex-defense personnel and border areas. For example, the self-share of the project cost is 10 % for the general category. And it is 5% for special categories. The subsidy from the government for the general category in urban areas is 15%. For rural, it is 25%. For the special category, in urban it is 25%. And for rural, it is 35%.
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PMEGP Loan Tenure
The term loan has a repayment of 3 to 7 years. The moratorium is 6 months in all banks. The rate of interest in a range of 11 to 12 % PA.
Eligibility Criteria for PMEGP
- The age of the individual must be of 18 years or above.
- They should have completed class VIII exams in schools.
- The size of the project must meet the criteria.
- The criteria for manufacturers over 10 lakhs and over 5 lakhs for the service sector.
- There is no income ceiling that is relevant for the loan.
- The loan is only for new ventures and for those ventures who have not availed benefits from other schemes.
Documents Required for PMEGP
The required forms are as follows.
All KYC documents of the borrower required including Aadhar, PAN, EPIC, etc. The caste certificate is a must. A claim for the subsidy. A form showing the project costs.
Procedure for PMEGP Application
One must visit the official website to fill online application. The filling of the application form is simple. This consists of 3 parts.
- Firstly, personal details are to be filled in the form.
- In the second phase, needs to enter all the information pertaining to scheme status including the desired loan amount with the bank account details.
- And lastly, submission of the documents in digital form.
PMEGP Online Application forms:
- Online Application form for Individual
- Online Application form for Non-Individual
- Login form for Registered Applicant
- Feedback form for Applicant
PMEGP e-Tracking System
Applicants can check the application status for PMEGP Scheme by entering the application ID.
It is also used by officials to manage KVIC/KVIB & DIC related applications, approvals & Reports.
Conclusion
To sum up, there is no doubt about the benefits of this scheme. It is a great project assisting all people. If you are willing to start a venture, you can easily do that. The key thing about this project is a simple process. In addition, the project is transparent. Hence it is an ideal scheme designed for the people.
Certainly, this scheme is truly a nation’s scheme. Because this scheme is not limited to any caste or region, it embraces all of the citizens of the country. So, people must take advantage of this scheme. So why wait, we wish you happy venturing. Certainly, it worth a try. Don’t you agree?