1/11/2019 1.

Prime Minister's Employment Generation Programme (PMEGP) | Ministry of Micro, Small & Medium Enterprises

सू , लघु और म म उ म मं ालय
MINISTRY OF
MICRO, SMALL & MEDIUM ENTERPRISES

Home >> 1. Prime Minister's Employment Generation Programme (PMEGP)

1. Prime Minister's Employment Generation Programme (PMEGP)

Scheme for providing financial assistance to set up new enterprises under PMEGP

1.1. Prime Minister’s Employment Generation Programme (PMEGP)

Rela Prime Minister Employment Generation Programme (PMEGP)

ted
Sch
eme
Des The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At
crip the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District
tion Industries Centres (DICs) and banks. In such cases KVIC routes government subsidy through designated banks for eventual disbursal to
the beneficiaries / entrepreneurs directly into their bank accounts.
Nat The maximum cost of the project/unit admissible in manufacturing sector is 25 lakhs and in the business/service sector, it is 10 lak
ure hs.
of a Categories of Beneficiary’s Rate of subsidy under PMEGP (of project cost)
ssis Area (location of project/unit) General category 15%(Urban), 25%(Rural), Special 25%(Urban), 35%(Rural)
tanc (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.)
e The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.
Wh Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and
o ca above Rs. 5 lakh in the business / service sector. Only new projects are considered for sanction under PMEGP. Self Help Groups (includi
n ap ng those belonging to BPL provided that they have not availed benefits under any other Scheme), Institutions registered under Societies
ply? Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible.

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 Existing
1/11/2019 Units (under PMRY, REGP1.or any
Prime otherEmployment
Minister's schemeGeneration
of Government of India
Programme (PMEGP) or State
| Ministry Government)
of Micro, and the units that have already a
Small & Medium Enterprises

vailed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.

How The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give adver
to a tisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desiro
ppl us of establishing the enterprise/ starting of service units under PMEGP.
y? The beneficiaries can also submit their application online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp and tak
e the printout of the application and submit the same to respective offices along with Detailed Project Report and other required docum
ents.

Wh State Director, KVIC

om Address available at http://www.kviconline.gov.in
to c Dy. CEO (PMEGP), KVIC, Mumbai
ont Ph: 022-26711017
act Email: ykbaramatikar[dot]kvic[at]gov[dot]in
Download Scheme Guidelines

Guidelines for 2nd Fin. Assistance under PMEGP for Expansion of the Existing Successful PMEGP/MUDRA units

1.2. Performance and Credit Rating Scheme

Re Performance and Credit Rating Scheme

lat
ed
Sc
he
m
e

De The purpose of rating scheme is to provide a trusted third party opinion on the capabilities and creditworthiness of the micro & small ente
sc rprises (MSEs) so as to create awareness amongst MSEs about the strengths and weakness of their existing operations. This provides the
rip m an opportunity to improve and enhance their organizational strengths and credit worthiness, so that they can access credit at cheaper
tio rates and on easy terms. It also facilitates them in increasing their acceptability from Customers / Buyers and Vendors. Rating under the
n scheme is a combination of credit and performance factors. Rating symbols are standardized and followed uniformly by all Rating Agencie
s.
Na Rating fee payable by the MSEs is subsidized by the Government to the extent of 75% subject to maximum ceiling of Rs. 40000/-based o
tu n the turnover of the unit.
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re1/11/2019 1. Prime Minister's Employment Generation Programme (PMEGP) | Ministry of Micro, Small & Medium Enterprises

of
as
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W Micro & Small Enterprises
ho
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n
ap
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Ho Rating is carried out through accredited rating agencies empaneled under the Scheme. MSEs have liberty to choose any of the empaneled
w Rating Agencies. Any unit, seeking rating under the Scheme, may apply in the application form (may be downloaded from the website of
to Ministry of MSME, NSIC, Office of DC-MSME and the Rating Agencies) along-with prescribed documents and its share of rating fee directly
ap to the rating agency, selected by it,
pl
y? (a). The Guidelines of Performance and Credit Rating Scheme are available on the Ministry's Website i.e. http://msme.gov.in

W General Manager-SG (Finance), NSIC

ho Ph: 011-26920920
m Email: pcrs[at]nsic[dot]co[dot]in
to
co
nt
ac
t

Download Scheme Guidelines

1.3. Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT SME)

Relat Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT SME)
ed S
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che
1/11/2019 1. Prime Minister's Employment Generation Programme (PMEGP) | Ministry of Micro, Small & Medium Enterprises

me
Desc Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly established a Trust na
riptio med Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in order to implement Credit Guarantee Scheme for Micro
n and Small Enterprises. The corpus of CGTMSE is contributed by Government of India and SIDBI. 75% of the loan amount to the bank is
guaranteed by the Trust Fund.
Natu Collateral free loan up to a limit of 100 lakh is available for individual MSE on payment of guarantee fee to bank by the MSE.
re of
assis
tanc
e

Who Both existing and new enterprises are eligible under the scheme.
can
appl
y?
How Candidates meeting the eligibility criteria may approach banks / financial institutions, and select Regional Rural Banks which are eligibl
to ap e under the scheme. Web links are www.dcmsme.gov.in/schemes/sccrguarn.htm
ply?

Who 1) CEO, CGT SME

m to Ph: 022-61437805
cont Email: pradeepm[at]cgtmse[dot]in
act
2) ADC, O/o DC, MSME
Ph: 011-23062241
Email : arun_kumar[at]nic[dot]in

Download Scheme Guidelines

1.4. Interest Subsidy Eligibility Certificate (ISEC)

Related Interest Subsidy Eligibility Certificate (ISEC)

Schem
e

Descrip The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an important mechanism of funding khadi programme undertaken by kh
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tion
1/11/2019 adi institutions. It was introduced toMinister's
1. Prime mobilise funds Generation
Employment from banking institutions
Programme for filling
(PMEGP) | Ministry of Micro, the
Smallgap between
& Medium the actual fund requirement
Enterprises

s and availability of funds from budgetary sources.

Nature Under the ISEC Scheme, credit at a concessional rate of interest of 4% per annum for working capital, is made available as per the r
of assis equirement of the institutions. The difference between the actual lending rate and 4% is paid by the Central Government through KV
tance IC to the lending banks.

Who ca The Khadi institutions, having valid Khadi certificate and sanctioned khadi programme.The Institutions registered with the KVIC/Stat
n appl e Khadi and Village Industries Boards (KVIBs) can avail of financing under the ISEC Scheme, the Scheme supports only the khadi an
y? d the polyvastra sector.
How to The Khadi institutions will apply to the financing bank for working capital alongwith the ISEC certificate issued by KVIC. Based on the
apply? working capital sanctioned, financing bank will raise the reimbursement claim to the nodal branch for the differential interest rate ov
er and above 4%.

Whom Dy. CEO, KVIC

to cont Ph: 022-26710021
act Email: kvicecr[at]gmail[dot]com

Download Scheme Guidelines

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Last Updated: 02 Aug 2018

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