A support to your entrepreneurial dream
Achieving the dream of being an entrepreneur takes a lot of pain, which only the sufferers might understand. It also persists beyond incorporation - when it comes to funding too. The pitch decks, meetings, conviction, those mighty schedules that involve time and human resource.
We have MSME schemes available for entrepreneurs that are meant to use wisely - to the benefit of the company provided by the Government in its efforts to promote MSMEs in the country.
Let us get to know the first one. The Prime Minister Employment Generation Programme (PMEGP)
MSMEs are job pools that could be tackled if effectively sourced by the Government or private institutions. The PMEGP has been started by the Central Government to provide financial support to the unemployed citizens.
As per PMEGP, one can avail loan amount up to Rs. 25 lakhs for manufacturing unit and upto Rs. 10 lakhs for service units. Expansion loan for an implemented organisation is up to Rs. 1 crore for manufacturing unit and Rs. 25 lakhs for service units. The subsidies under the scheme is routed by Khadi and Village Industries Commission (KVIC) through the identified banks for eventual distribution to the beneficiaries/entrepreneurs in their bank accounts.
The citizens from both rural and urban areas in the country will be benefited through this scheme, which is the best scheme for entrepreneurs with maximum subsidy.
The scheme can be availed by applying online through https://www.kviconline.gov.in/pmegp.jsp
District Industries Center acts as the PMEGP nodal agency in urban areas while it is KVIC in rural areas.
Subsidy under PMEGP
In rural areas 25% subsidy will be provided to the general category to start their business while it is 15% in the urban department. 35% subsidy will be provided to the special category (SC/ST/OBC/Ex-Serviceman) to start their business in the rural department while 25% subsidy will be provided to the same category in the urban department. For manufacturing units the subsidy is 15% up to 15 lakhs while it is 15% up to 3.75 lakhs for service units.