November 29, 2019 at 8:34 am | Latest Finance News

Ministry of MSME providing loans for promoting Khadi, Village Industries

New Delhi : Ministry of MSME has been providing loans to unemployed youth for promoting Khadi and Village Industries, by implementing a credit-linked subsidy scheme viz., Prime Minister’s Employment Generation Programme (PMEGP) since 2008-09, for setting up of new micro-enterprises and to generate employment opportunities, in rural as well as urban areas of the country through Khadi and Village Industries Commission (KVIC), State Khadi & Village Industries Boards (KVIBs) and District Industries Centres (DICs).

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 SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector.

The individuals interested to start Khadi activities can apply for the loan from Banks under the PMEGP scheme.

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