Frequently Asked Questions(FAQ)

A : Rs.50.00 lakhs for manufacturing unit and Rs.20.00 lakhs for Service Unit.

Categories of beneficiaries under PMEGP

Rate of (Margin Money) Subsidy (of project cost)

Area (location of project/unit)

Urban

Rural

General Category

15%

25%

Special (including SC / ST / OBC /Minorities/Women/Transgender, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc.

25%

35%
A : Capital Expenditure(Term Loan) Loan, working capital and 10% of project cost as own contribution in case of General category and 5% of project cost in case of weaker section.
A : Individual Entrepreneurs Only.
A : All Public Sector Banks ,Regional Rural Banks(RRB), Co-operative Banks,SIDBI and Private Scheduled Commercial Banks regulated by RBI and approved by SLMC of concern State.
A : Beneficiary can submit his/her application/Project online on kvic website kviconline.gov.in/pmegpeportal. List of office addresses of KVIC/KVIB/DIC/COIR are available at our website.
A : Any Village Industry (except those mentioned in the negative list) located in the Rural/Urban Area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment per head of a full time artisans or worker does not exceed Rs.3.00 lakh in plain area and Rs.4.50 lakhs in hilly areas and for A & N Island and Lakshadweep Rs.4.5 Lakhs.
A : Any area classified as Village as per the revenue record of the State/UT, irrespective of the population. All the areas, irrespective of Population, following unde Panchayat Raj Institutions.
A : Any adult beneficiary above 18 years is eligible for assistance under PMEGP.
A : It should fulfill the criteria of rural area (for Rural Area project), per capita investment, own contribution, negative list and the unit should be new one.
A : Before MM Claim through PMEGP eportal ,EDP training of 10 working days for Project cost More than 5.00 lakhs and 5 Working days training for upto Project Cost 5.00 lakhs by the beneficiary is compulsory. EDP Training is not Mandatory for Projects Upto Rs.2.00 Lakhs.
A : As per RBI guidelines the project costing upto Rs.10.00 lakhs under PMEGP loans are free from collateral security. The CGTMSE provided collateral guarantee for the project upto Rs. 2.00 Crore.
A : Yes through All Implementing Agencies.
A : No, only new unit are eligible except for 2nd Loan for existing (REGP/PMEGP/MUDRA) units .
A : yes, Industry wise model projects are available at kvic.org.in.
A : List of EDP training centers including 582 training center of RSETI/RUDSETIS are available at our website kvic.org.in.

Categories of beneficiaries under PMEGP

Own contribution (of project cost)

General Category 10%
Special (including SC / ST / OBC /Minorities/Women/Transgender, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc. 05%
A : The Following list of activities will not be permitted under PMEGP for setting up of micro enterprises/ projects/ units.
i. Any industry/Business connected with Meat(Slaughtered), i.e. processing, canning and/or serving items made of it as food, Production/Manufacturing or sale of intoxicant items like Beedi/Paan/Cigar/Cigarette etc. Hotels or Dhaba or Sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale will not be allowed.
(a) However, serving/selling non-vegetarian food at Hotels/Dhabas will be allowed.
ii. Activities prohibited by Local Government/Authorities keeping in view environment or Socio-economic factors will not be allowed.
iii. Manufacturing of polythene carry bags of less than 75 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item which causes environmental problems. Thickness of polythene carry bags shall be governed by the Ministry of Environment, Forest and Climate changes notification for plastic waste management rules and amendments from time to time.
iv. Any Industry/Business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry will not be allowed.
(a) However, value addition under these will be allowed under PMEGP. Off Farm/Farm Linked activities in connection with sericulture, horticulture, floriculture etc. will be allowed.
Following industry/Business connected with Animal Husbandry will also allowed:
(a) Dairy-Milk and other dairy products through primarily Cows but also sheep, goats, camels, buffaloes, horses, and donkeys.
(b) Poultry-Poultry, kept form their eggs and for their meat, include chickens, turkeys, geese and ducks.
(c) Aquaculture-It is the farming of aquatic organisms including fish, molluscs, crustaceans and aquatic plants
(d) Insects -Including Bees, Sericulture, etc.
(As a special case piggery, which is a major source of livelihood in NER may also be allowed in NER states only).