KVIC chairman VK Saxena with PMEGP beneficiaries Baby Medhi and Santu Choudhary. Image: KVIC India

PMEGP KVIC Loan details: For Assam’s Baby Medhi and Santu Choudhary, Central government’s Prime Minister’s Employment Generation Programme (PMEGP) has served as a big saviour of their entrepreneurial ambitions. Also, it is the first time when two women entrepreneurs have been awarded a loan under the scheme to set up their Agarbatti manufacturing units. Sharing the information, KVIC chairman V K Saxena tweeted on Friday, “It is a moment of pride as for the first time, 2 women entrepreneurs from Guwahati Baby Medhi & Santu Choudhary got loan to set up their Agarbatti manufacturing unit under PMEGP. My best wishes for their success.”

According to Saxena, 140 such applications under process. Not many are aware that under PMEGP, aspiring entrepreneurs can get a loan up to Rs 25 lakh with a government subsidy of 25 per cent for setting up a manufacturing unit in rural areas. Here are all the details you need to know about the scheme:

PMEGP scheme

PMEGP is a credit-linked subsidy programme run by Ministry of Micro, Small and Medium Enterprises, Government of India. Khadi and Village Industries Commission (KVIC) is the nodal agency for implementation of the programme at the national level. The scheme is implemented through KVIC, KVIB and District Industries centre at the state level.

According to KVIC official website, the maximum project cost allowed under the scheme is Rs 25 lakh for a manufacturing unit and Rs 10 lakh for setting up a Service unit. The cost of land is not counted for calculating the project cost.

Admissible government subsidy

In rural areas, 25 per cent is the admissible government subsidy for the general category and 35 per cent for special category, which includes SC/ST/OBC/Minorities/Women/Ex-servicemen, Physically handicapped, NER, Hill and Border areas. The admissible subsidy rates for both categories in urban areas are 15% and 25% respectively.

Loans under PMEGP is provided by 27 Public Sector Banks, Regional Rural Banks(RRB), Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee.

Who can apply?

According to KVIC, loan under the scheme is available for individual entrepreneurs, institutions, co-operative societies, Self help groups, trusts.

How to apply for PMEGP loan

KVIC website says that the beneficiary can submit his/her application/Project online on kvic website www.kvic.org.in / kviconline.gov.in/pmegpeportal. The list of office addresses of KVIC/KVIB/DIC is available on the website.

To be eligible for the scheme, the beneficiary needs to be above 18 years.

No collateral for project costing Rs 10 lakh

KVIC website says, “As per RBI guidelines the project costing upto Rs.10.00 lakhs under PMEGP loans are free from collateral security. The CGTSME provided collateral guarantee for the project beyond Rs.5.00 lakhs and upto Rs.25.00 lakhs under PMEGP scheme.”