The central government has introduced various schemes to provide financial assistance to the poor and unemployed. However, many people are not aware of these schemes and cannot utilize them.
One such scheme is the Prime Minister’s Employment Program (PMEGP), which aims to provide self-employment opportunities to unemployed youth by offering loans ranging from Rs. 1 lakh to Rs. 50 lakh.
The government offers a discount of up to 35%, meaning that if you take a loan of Rs. 20 lakh, you won’t need to pay Rs. 7 lakh, effectively receiving Rs. 7 lakhs for free.
The PMEGP scheme is implemented by the Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small, and Medium Enterprises.
It is conducted online transparently without any intermediaries. The scheme is available through the National Nodal Agency, State Boards, and the District Industries Centre.
It offers loans to set up new medium, small, micro, and cottage industries, renovate existing units, and expand businesses.
The PMEGP scheme is open to individuals looking to start new businesses. Loans of up to Rs. 50 lakh are available. Service-oriented business units can receive up to Rs. 20 lakh; a 10% investment is sufficient for general category individuals.
For specific groups such as women, SCs, STs, BCs, minorities, disabled individuals, and ex-servicemen, a 5% investment is enough.
Rural business units can also receive a subsidy of up to 35%, while urban areas can avail of a 25% discount. The scheme is open to individuals above 18 who have completed at least 8th standard, with only one person per family eligible to apply.
Applying for the PMEGP scheme is straightforward. Visit the www.kviconline.gov.in website, fill out the application form, and register for a user ID and password. Rural candidates should apply through KVIC, while urban candidates should apply through DIC.
You can expect a response from the authorities within 10-15 days of application, and project sanction work will commence after that.
One month of mandatory training, online or offline, will be provided, after which the first loan installment will be given.
Remember, the scheme is open to individuals above 18 who have completed at least 8th standard, with only one person per family eligible to apply. The loan interest rates range from 7-10 percent.