The Prime Minister started a new scheme called PMEGP Loan Scheme. It is for unemployed children, housewives, college students, and temporary workers in the country. The main aim of this scheme is to give jobs. It will help reduce unemployment and give motivation to young people to work. Here you can know about the benefits of this scheme, who can apply, and how to apply.
PMEGP Loan Scheme: Help for Unemployed Youth
The PMEGP Loan Scheme helps unemployed youth to become self-reliant. It is run by the Khadi and Village Industries Commission (KVIC). The scheme creates new business opportunities in rural and urban areas. Entrepreneurs can start small businesses by taking MSME loans or bank loans, where the government gives financial help or subsidies. The government provides loans without guarantors, at low interest, and with subsidies. The main aim is to create lakhs of jobs. However, not all types of businesses are covered, so applicants should check the rules before applying.
Objectives and Benefits
The main goal of the PMEGP Loan Scheme is to reduce unemployment and boost the economy in rural and urban areas. It helps set up small businesses and gives credit-linked subsidies. The subsidy can be 15% to 35% of the total project cost. It is for new projects only and helps provide long-term employment. Entrepreneurs can buy machines or start small factories with this loan. Women, SC/ST, and disabled people get extra benefits.
The subsidy depends on the project cost. For general categories, it is 15% in urban areas and 25% in rural areas. For special categories (SC/ST, women, ex-servicemen), it is 25% in urban areas and 35% in rural areas. This is a one-time subsidy, combined with bank loans, and is adjusted after three years. Higher benefits are given in North-Eastern or hilly areas.
Who Can Get the Loan
Applicants must be 18 years or older. For manufacturing projects costing more than ₹10 lakh, applicants should have 8th class pass. People from special categories get priority. Only one person per family can take this benefit. Those who received other government scheme benefits cannot apply. Self-help groups are also eligible. Temporary workers and laborers can get free financial help.
Who Cannot Get the Loan
The PMEGP Loan does not cover agriculture, animal farming, or tea and coffee cultivation. Some projects are restricted for environmental reasons. Loans are not given for existing businesses, except for upgradation. Prohibited activities like liquor production or gambling are not allowed. Applicants must follow local rules. These restrictions ensure quality projects.