1. Prime Minister's Employment Generation Programme (PMEGP)

Scheme for providing financial assistance to set up new enterprises under PMEGP

1.1. Prime Minister’s Employment Generation Programme (PMEGP)

Related Scheme Prime Minister Employment Generation Programme (PMEGP)
Description The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks. In such cases KVIC routes government subsidy through designated banks for eventual disbursal to the beneficiaries / entrepreneurs directly into their bank accounts.
Nature of assistance The maximum cost of the project/unit admissible in manufacturing sector is ₹ 25 lakhs and in the business/service sector, it is ₹ 10 lakhs.
Categories of Beneficiary’s Rate of subsidy under PMEGP (of project cost)
Area (location of project/unit) General category 15%(Urban), 25%(Rural), Special 25%(Urban), 35%(Rural)
(including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.)
The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.
Who can apply? Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector. Only new projects are considered for sanction under PMEGP. Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme), Institutions registered under Societies Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible.
Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.
How to apply? The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desirous of establishing the enterprise/ starting of service units under PMEGP.
The beneficiaries can also submit their application online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp and take the printout of the application and submit the same to respective offices along with Detailed Project Report and other required documents.
Whom to contact State Director, KVIC
Address available at http://www.kviconline.gov.in
Dy. CEO (PMEGP), KVIC, Mumbai
Ph: 022-26711017
Email: ykbaramatikar[dot]kvic[at]gov[dot]in
Download Scheme Guidelines
Guidelines for 2nd Fin. Assistance under PMEGP for Expansion of the Existing Successful PMEGP/MUDRA units

1.2. Performance and Credit Rating Scheme

Related Scheme Performance and Credit Rating Scheme
Description The purpose of rating scheme is to provide a trusted third party opinion on the capabilities and creditworthiness of the micro & small enterprises (MSEs) so as to create awareness amongst MSEs about the strengths and weakness of their existing operations. This provides them an opportunity to improve and enhance their organizational strengths and credit worthiness, so that they can access credit at cheaper rates and on easy terms. It also facilitates them in increasing their acceptability from Customers / Buyers and Vendors. Rating under the scheme is a combination of credit and performance factors. Rating symbols are standardized and followed uniformly by all Rating Agencies.
Nature of assistance Rating fee payable by the MSEs is subsidized by the Government to the extent of 75% subject to maximum ceiling of Rs. 40000/-based on the turnover of the unit.
Who can apply? Micro & Small Enterprises
How to apply? Rating is carried out through accredited rating agencies empaneled under the Scheme. MSEs have liberty to choose any of the empaneled Rating Agencies. Any unit, seeking rating under the Scheme, may apply in the application form (may be downloaded from the website of Ministry of MSME, NSIC, Office of DC-MSME and the Rating Agencies) along-with prescribed documents and its share of rating fee directly to the rating agency, selected by it,

(a). The Guidelines of Performance and Credit Rating Scheme are available on the Ministry's Website i.e. http://msme.gov.in
Whom to contact General Manager-SG (Finance), NSIC
Ph: 011-26920920
Email: pcrs[at]nsic[dot]co[dot]in
Download Scheme Guidelines

1.3. Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT SME)

Related Scheme Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT SME)
Description Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in order to implement Credit Guarantee Scheme for Micro and Small Enterprises. The corpus of CGTMSE is contributed by Government of India and SIDBI. 75% of the loan amount to the bank is guaranteed by the Trust Fund.
Nature of assistance Collateral free loan up to a limit of ₹ 100 lakh is available for individual MSE on payment of guarantee fee to bank by the MSE.
Who can apply? Both existing and new enterprises are eligible under the scheme.
How to apply? Candidates meeting the eligibility criteria may approach banks / financial institutions, and select Regional Rural Banks which are eligible under the scheme. Web links are www.dcmsme.gov.in/schemes/sccrguarn.htm
Whom to contact 1) CEO, CGT SME
Ph: 022-61437805
Email: pradeepm[at]cgtmse[dot]in

2) ADC, O/o DC, MSME
Ph: 011-23062241
Email : arun_kumar[at]nic[dot]in
Download Scheme Guidelines

1.4. Interest Subsidy Eligibility Certificate (ISEC)

Related Scheme Interest Subsidy Eligibility Certificate (ISEC)
Description The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an important mechanism of funding khadi programme undertaken by khadi institutions. It was introduced to mobilise funds from banking institutions for filling the gap between the actual fund requirements and availability of funds from budgetary sources.
Nature of assistance Under the ISEC Scheme, credit at a concessional rate of interest of 4% per annum for working capital, is made available as per the requirement of the institutions. The difference between the actual lending rate and 4% is paid by the Central Government through KVIC to the lending banks.
Who can apply? The Khadi institutions, having valid Khadi certificate and sanctioned khadi programme.The Institutions registered with the KVIC/State Khadi and Village Industries Boards (KVIBs) can avail of financing under the ISEC Scheme, the Scheme supports only the khadi and the polyvastra sector.
How to apply? The Khadi institutions will apply to the financing bank for working capital alongwith the ISEC certificate issued by KVIC. Based on the working capital sanctioned, financing bank will raise the reimbursement claim to the nodal branch for the differential interest rate over and above 4%.
Whom to contact Dy. CEO, KVIC
Ph: 022-26710021
Email: kvicecr[at]gmail[dot]com
Download Scheme Guidelines