Loan for Self Employment



Loan for Self Employment 
Under Prime Minister’s Employment Generation Programme(PMEGP), an individual, above 18 years of age can apply for establishing a unit through Bank credit. The maximum cost of project is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector. General category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging to North Eastern Region, hill and border areas, etc., the margin money subsidy is 35% in rural areas and 25% in urban area. 


The PMEGP Scheme provides for mandatory Entrepreneurship Development Programme (EDP) training of 1-2 weeks for the PMEGP entrepreneurs. The EDP training is aimed at imparting knowledge on the concept of entrepreneurship, its challenges and prospects and to develop skill on management of a unit - including financial and marketing etc. EDP training is provided through:

i) KVIC and KVIB Departmental Training Centers

ii) Central and State Government Training Centers

iii) Rural Self Employment Training Institutes(RSETI) Training Centers

This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Giriraj Singh in a written reply to a question in Lok Sabha here today. 


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