Prime Minister's Employment Generation Programme (P.M.E.G.P) - Maharashtra State Khadi and Village Industries Board, Mumbai

Prime Minister’s Employment Generation Programme (P.M.E.G.P)

Khadi & Village Industries Commission has commenced PMEGP Scheme on the same lines to REGP, to be implemented by Local Financial Institutions. Board has been entrusted the responsibility of implementing the same. The details of this schemes are as under:

  1. Beneficiary will have to submit his loan proposal through District Office of the Board to the concerned Bank.

  2. The loan proposals, thus received will be sent to the concerned banks duly recommended by the District Offices.

  3. Beneficiary will have to invest 5% to 10% amount of the project cost as Own Contribution and balance amount of 90% to 95% its sanctioned by the bank and disbursed as a loan.

  4. After disbursement of the sanctioned loan amount to the beneficiary, the Margin Money to the tune of 25% to 35% is being given to them on the actual sanctioned amount

  5. Beneficiary has to repay the loan amount as per interest rate, instalments fixed by the Bank and in a tenure decided by them.

  6. The Margin Money amount is converted into a subsidy after the loan amount is fully repaid by the beneficiary. In other words the Margin Money amount given by the Board to the Bank on behalf of beneficiary is adjusted against the remaining loan amount.

Under this scheme an amount of Rs. 1662.61 lacks has been made available as loan to. 772 beneficiaries by the Bank during the year under report i.e. 2016-17