Under the PMEGP scheme, General Category beneficiaries are required to contribute 10% of the project cost as their own contribution. The government provides a margin money subsidy based on the location of the project:
• Rural Areas: 25% of the project cost.
• Urban Areas: 15% of the project cost.
This means that for a project in a rural area, the beneficiary contributes 10%, the government provides a 25% subsidy, and the remaining 65% is financed by the bank. In urban areas, the beneficiary's 10% contribution is complemented by a 15% subsidy, with the bank financing the remaining 75%.
Study Notes
Category
