Introduced in 2008, the Prime Minister’s Employment Generation Programme or PMEGP is a credit-linked subsidy scheme that aims to bolster employment across the Indian demography.
Through this scheme, eligible applicants can acquire a subsidy between 15% and 35% of the total project cost. Prospective enterprise operators can avail business loans to finance the remaining expenses.
- According to a Periodic Labour Force Survey during the fiscal year 2018, 7.8% urban Indians and 5.3% rural Indians are unemployed.
The Ministry of Micro, Small and Medium Enterprise administers PMEGP, which is also accountable for Udyog Aadhaar registration. At the national level, the Khadi and Village Industries Commission or KIC is in charge of implementing PMEGP.
- KVIC is responsible for creating 20 lakh new jobs in 5 fiscal years.
It merges 2 schemes, namely the Rural Employment Generation Programme and Prime Minister’s Rozgar Yojna. PMEGP looks to generate employment by aiding the establishment of micro-companies.
- Prime Minister’s Employment Generation Programme generated more than 5.87 lakh micro enterprise-related jobs in FY 2018-19.
Eligibility criteria for PMEGP
Take a look at the requirements listed below to understand whether you qualify for the scheme.
- Individuals who are 18 years or above can apply to PMEGP.
- You must be a class VIII pass out or have higher equivalent education qualifications to apply for a service sector project worth above Rs.5 lakh or a manufacturing project worth over Rs.10 lakh.
- Institutions registered under the Societies Registration Act of 1860.
- Charitable trusts and self-help groups and eligible for this financial assistance.
- Co-operative societies based on production can avail the facility.
If you qualify for the Employment Generation Programme, start planning your business details. After its launch, apply for Aadhaar Udyog registration online and take advantage of more subsidies.
Documents required for PMEGP registration
If you want to utilise this scheme, make sure you can provide the following documents.
- PAN card.
- Aadhaar card.
- Caste certificate.
- Project report.
- Authorisation letter.
- Documents related to education or EDP or skill development.
- Rural area certificate.
- Special category certificate, if necessary.
Offering an effective business funding solution, PMEGP helps to get your business off the ground. Nonetheless, registration to the scheme is impossible without the proper documents.
- In 2018-19, PMEGP created the most jobs in Jammu & Kashmir, followed by Maharashtra and Uttar Pradesh.
The online application process for PMEGP
If you are eligible and possess the necessary documentation for the subsidy scheme, you can successfully register on the official portal. Thankfully, you can complete the entire process online in a hassle-free manner.
Take a look below to know the detailed procedure:
- Step 1
Visit the official site at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp. Choose the ‘apply online’ option.
- Step 2
Select either the ‘online application form for individual’ or the ‘online application form for non-individual’ as required.
- Step 3
Fill up the application form carefully, taking your time while entering your name, type of activity, sponsoring agency, financing institutions, and more.
- Step 4
After completing the form, make sure you click on save applicant data option.
- Step 5
Upload the required documentation. After the document submission, prepare for final application submission.
- Step 6
After the submission, you will receive an application ID along with a password on the registered mobile number. Use them to check the status of your application periodically.
This is the complete process through which you can sign up for the effective financing solution for MSMEs.
PMEGP subsidy, along with a valid Aadhaar Udyog registration, is vital to achieving long-term success. Every business owner needs to understand the reasons why a machinery loan can help your business.
Numerous financial institutions such as Bajaj Finserv offer such loans at affordable interest rates and with customised loan features to help business owners use the advances to increase their business revenue.
Prime Minister’s Employment Generation Programme has shown immense promise since its inception. It has not only reduced unemployment but also boosted the micro-enterprise sector in India, offering an alternative source of income for non-farming youth.
PMEGP is also instrumental in bringing forth development for rural areas, encouraging the establishment of new and creative industries.
If you are an eligible individual, you can easily benefit from the PMEGP scheme by referring to the respective portal online. Avail a credit via this scheme to initiate your business operations.