We are going to discuss here one such subsidy which is provided by Central Govt! Which is PMEGP!

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗣𝗠𝗘𝗚𝗣?

The Prime Minister’s Employment Generation Program (PMEGP) is a credit-linked subsidy program which encourages the establishment of new micro-enterprises or assists in expansion of them.

Credit linked subsidy program means, you can avail subsidy only if you are availing a loan from any nationalized or private banks.

Paving the Way to Prosperity:

PMEGP isn’t just a program; it’s a game-changer! With a commitment to fueling innovation and economic growth, PMEGP opens doors to funding opportunities, mentorship, and a thriving community of like-minded visionaries.

Elevate Your Vision:

Experience the thrill of turning your entrepreneurial dreams into reality. PMEGP is more than just a support system; it’s a catalyst for industry-wide success. From manufacturing marvels to cutting-edge services, PMEGP is the driving force behind ventures that shape the future.

𝗪𝗵𝗼 𝗰𝗮𝗻 𝗮𝘃𝗮𝗶𝗹 𝘀𝘂𝗯𝘀𝗶𝗱𝘆?

There are certain eligibility criteria for every Govt. Scheme.

• Individuals above 18 years, which means partnership firm, company or any other type of entity is not eligible.
• Govt’s main focus is on Manufacturing & Service sector. For trading entities, there is very little scope in this scheme.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝘀𝘂𝗯𝘀𝗶𝗱𝘆 𝘄𝗲 𝗴𝗲𝘁?

Yes, after all that is the main thing. The Govt. is encouraging development in rural area more as compared to the urban areas.

Here in this scheme, subsidy rate in rural area is upto 35% of project cost whereas in urban area the rate is upto 25% (For special category applicants).

For other applicants, the rate is 25% for rural area and 15% for urban area of the total project cost.

𝗗𝗶𝘃𝗶𝘀𝗶𝗼𝗻 𝗼𝗳 𝘁𝗵𝗲 𝗧𝗼𝘁𝗮𝗹 𝗣𝗿𝗼𝗷𝗲𝗰𝘁 𝗖𝗼𝘀𝘁:

Lets take an example, say you are a general category applicant, your total project cost is 10 lakhs, and say you are putting a project in rural area, then –

• You will get 25% subsidy i.e 2.5 lakhs,
• 10% of project cost to be contributed by you,
• Rest 65% will be loan from bank.

But practically you will get loan sanctioned amounting to 90% of the project cost i.e. 9 lakhs and the subsidy you will receive will be adjusted against the loan.