Government Loan Scheme: Prime Minister Employment Generation Scheme (PMEGP) is a welfare scheme launched by the Government of India in the year 2008. Through this scheme, the government provides loan facilities to the unemployed youth of the state to start their employment, on which they are also given the benefit of the subsidy.
What is the PMEGP Loan Scheme
Pradhan Mantri Rojgar Yojana and Rural Employment Generation Program have been jointly created by the Central Government. Through this scheme, the government provides loan facilities from government banks to the unemployed and interested youth of the country to start their business.
Under the scheme, a loan of up to Rs 50 lakh is being provided to the citizens according to the category of the project, on which the government is also providing the benefit of subsidy ranging from 15% to 35% to the beneficiary.
Features and Benefits of the PMEGP Loan Scheme
Under PM Rojgar Srijan Yojana, the government is providing loan facilities to unemployed youth to start employment.
Under the scheme, a 90% loan of the project cost is given to all categories of applicants to upgrade the unit.
Under the PM Employment Generation Scheme, applicants from special category urban areas get a 25% subsidy while applicants from rural areas get a 35% subsidy.
This special category includes applicants from SC, ST, OBC, minorities, women, ex-servicemen, disabled, hilly and border areas, and aspirational districts as determined by the Government of India.
The interest rate of loans available under this scheme varies according to different banks, although it can generally be between 11% to 13%.
Loan eligibility conditions
To apply for the Employment Generation Scheme, the applicant will have to fulfill its prescribed eligibility, the information about all such eligibility is as follows.
Indian citizens will be eligible to apply for the scheme.
The minimum age of the applicant should be 18 years or above.
The applicant will be given a loan only for approved businesses, the applicant will not be given a loan for starting any other business.
Under PM Rojgar Srijan Yojana, only one person from a family will be eligible to avail benefits, the family includes the applicant himself and his/her spouse.
In this scheme, for a loan of Rs 10 lakh for the construction sector and Rs 5 lakh or more for the business/service sector unit, the applicant must have a minimum 8th pass in educational qualification.
Loan assistance will not be given under PMEGP for projects without capital expenditure.
Required document for this
applicant’s Aadhar card
PAN card
Project report of the business you are starting
Proposal for setting up the unit. Land ownership/lease agreement or tenancy deed
Details of the estimated cost of the machine and other equipment
Blueprint and estimated cost of the proposed building for the enterprise 4
Rural area certificate (if applicable)
Certificate related to educational qualification
Authorization Letter
caste certificate
Certificate of Skill Development Program or EDP Training
passport size photo
