Question
U nder the Prime Minister’s Employment Generation
Programme (PMEGP ) scheme , banks can provide finance to the extent of _ ______, for projects to set up a new micro enterprise .Solution
The assistance under the PMEGP is:  The maximum cost of the project / unit admissible in manufacturing sector is Rs . 50 lakhs and in the service sector, it is Rs . 20 lakhs .  Beneficiary can avail bank finance as term loan and working capital . If the application for loan is approved, Banks sanction and release the balance amount of 90 to 95 percent of the total project cost suitably for setting up of the units by the beneficiaries.   The categories of beneficiary ’ s rate of subsidy and the extent of bank finance under PMEGP ( of project cost ) are as follows :  
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