Sunday, August 4, 2024

Work From Home Loans (for 1056 Scheme), Prime Minister Employment Generation Program(PMEGP)

Prime Minister's Employment Generation Programme (PMEGP)

Prime Minister's Employment Generation Programme (PMEGP)

Overview

Launched Shri. Narendramodi (Prime Minister of India),announced the Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME). The scheme aims to generate employment opportunities by establishing micro-enterprises in both rural and urban areas. Approved for continuation over the 15th Finance Commission cycle, PMEGP covers the period from 2021-22 to 2025-26. It was formed by merging the Prime Minister's Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP). An outlay of ₹13,554.42 Crore has been approved for PMEGP for five financial years to set up about 4,00,000 projects and create 30,00,000 jobs.

Objectives

  • To generate employment opportunities in rural and urban areas through new self-employment ventures/micro-enterprises.
  • To bring together traditional artisans and unemployed youth to provide self-employment opportunities at their place.
  • To provide sustainable employment and prevent migration of rural youth to urban areas.
  • To increase wage-earning capacity and contribute to the growth of rural and urban employment.

Implementing Agencies

At the national level, the scheme is implemented by the Khadi and Village Industries Commission (KVIC), under the Ministry of MSME. At the state level, it is executed through KVIC state offices, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), Coir Board, and Banks. Other agencies may also be involved in the scheme's implementation.

Beneficiary Details

Funds Allocation

Funds under PMEGP are available under two major heads:

  1. Margin Money Subsidy:
    • Funds allocated for disbursement of Margin Money (subsidy) for new micro-enterprises/units.
    • ₹100 Crores or as approved for the upgradation of existing PMEGP/REGP/MUDRA units.
  2. Backward and Forward Linkages:
    • 5% of the total allocation for arranging awareness camps, monitoring meetings, workshops, exhibitions, and other related activities.

Levels of Support

For New Micro-Enterprises

General Category:

  • Beneficiary's contribution: 10%
  • Rate of Subsidy: 15% for Urban Areas, 25% for Rural Areas.

Special Category:

  • Beneficiary's contribution: 05%
  • Rate of Subsidy: 25% for Urban Areas, 35% for Rural Areas.

Maximum project cost for Margin Money subsidy:

  • ₹50,00,000 for Manufacturing sector
  • ₹20,00,000 for Business/Service sector

2nd Loan for Upgradation of Existing Units

  • Beneficiary's contribution: 10%
  • Rate of Subsidy: 15% (20% in NER and Hill States)

Maximum project cost for Margin Money subsidy for upgradation:

  • ₹10,00,00,000 for Manufacturing sector
  • ₹25,00,000 for Business/Service sector

Guidelines and Updates

Eligibility Criteria

For New Enterprises (Units)

  • Individuals above 18 years of age.
  • No income ceiling for assistance.
  • Educational qualification of at least VIII standard for projects above ₹10 lakh in Manufacturing and ₹5 lakh in Business/Service sectors.
  • Assistance available only for new projects; existing units are not eligible.

For Existing Units

  • Upgradation available for projects already financed under PMEGP/REGP/MUDRA schemes.
  • Only those existing units whose project costs do not exceed ₹10 lakh in Manufacturing and ₹5 lakh in Business/Service sectors are eligible.

Financial Agencies

The following financial agencies are involved in the PMEGP scheme:

  • 27 Public Sector Banks
  • Regional Rural Banks (RRB)
  • Co-operative Banks
  • Private Scheduled Commercial Banks approved by respective State Task Force Committee

EDP Training Requirement

Before making a Margin Money (MM) Claim through the PMEGP portal:

  • EDP training of 10 working days is required for projects costing more than ₹5.00 lakhs.
  • EDP training of 6 working days is required for projects costing up to ₹5.00 lakhs.

Collateral Security

As per RBI guidelines:

  • Projects costing up to ₹10.00 lakhs under PMEGP loans are free from collateral security.
  • The CGTSME provides a collateral guarantee for projects beyond ₹5.00 lakhs and up to ₹25.00 lakhs under the PMEGP scheme.

Download Scheme Guidelines

For detailed guidelines, you can download the scheme document from the following link:

Click Here

Interest Subsidy Eligibility Certificate (ISEC) Scheme

Description: The ISEC Scheme is an important funding mechanism for the khadi programme undertaken by khadi institutions. It helps mobilize funds from banking institutions to fill the gap between the actual fund requirements and availability of funds from budgetary sources.

Nature of Assistance: Under the ISEC Scheme, credit at a concessional rate of interest of 4% per annum for working capital is made available. The difference between the actual lending rate and 4% is paid by the Central Government through KVIC to the lending banks.

Who Can Apply? Khadi institutions having a valid Khadi certificate and sanctioned khadi programme. Institutions registered with KVIC/State Khadi and Village Industries Boards (KVIBs) can avail financing under the ISEC Scheme. The scheme supports only the khadi and polyvastra sectors.

How to Apply: Khadi institutions will apply to the financing bank for working capital along with the ISEC certificate issued by KVIC. Based on the working capital sanctioned, the financing bank will raise the reimbursement claim to the nodal branch for the differential interest rate over and above 4%.

Contact:

View Schemes and Projects

You can view the List Of 1056 schemes and projects using the following link:

Click Here

You can view Projcet Reports about 1056 schemes and projects using the following link:

Click Here

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