PMEGP-online Process Flow of application and fund flow:

1 Project proposals will be invited from potential beneficiaries at district level through press, advertisement, radio and other multi-media by KVIC, KVIBs and DICs at periodical intervals depending on the target allotted to that particular district. The scheme will also be advertised /publicized through the Panchayati Raj Institutions which will also assist in identification of beneficiaries.

2 Online applications will be mandatory and no manual applications will be allowed as PMEGP-e-Portal has been developed and put into operation by KVIC Applications for new projects under PMEGP will be filled and submitted only through the said PMEGP-e-Portal. 

3 There will be two separate online application forms for individuals and institutional applicants available on the portal. 

4 Applicants will be provided with User ID and Password at the time of initial registration (application filing) for their use in tracking the status of their application. Applicant will be provided with application ID on final submission. 

5 Applicant's Aadhaar number would be preferred and in case applications are being filed by institutions, the authorized person should furnish his Aadhaar number. Aadhaar has been mandatory wherever it is available. In other cases PAN would be asked. 

6 There will be a provision to upload the Photo and documents which are necessary for screening the application, before submitting the application. These documents will include the following: a. Caste Certificate b. Special Category Certificate, wherever required. c. Rural Area certificate. d. Project Report. e. Education/ EDP/Skill Development training certificate f. In case of Institutions self attested copies of the following are also required; 1. Registration certificate 2. Authorization letter/copy of bye-laws authorizing Secretary etc. to apply. 3. Certificate for Special Category, wherever required. 

7 After filing the application and uploading the required documents on the portal, the applicant will click SUBMIT button and the application will be finally submitted. The entire set of documents and application form will be electronically forwarded to the District Representative of KVIC, District Representative of State KVIB and the District Industries Centre of the concerned District. 

8 Within five working days of receipt of application, the nodal officer of KVIC, State KVIB and DIC shall interact with the applicant personally on telephone or personal meeting and confirm the receipt/ acceptance of the application for preliminary scrutiny. The nodal officer will do all the required correction in the application in consultation/cross checking with the applicant and also provide hand holding to the applicant at every stage. The implementing agencies, after preliminary appraisal of the application will forward the complete/corrected applications directly to one of the financing bank opted by the applicant for taking credit decisions alongwith a copy to the Lead Bank Manager(LDM) for information and monitoring. The complete/corrected applications must be forwarded to the Banks as soon as possible and in no case later than three weeks of receipt of application by the implementing agencies. Forwarding of applications must be on-line on PMEGPe-Portal only.

9 The agencies will appraise the applications on same methodology as followed by Banks for approval of loan. The scoring model (card) devised by the IBA, as mentioned in Clause 7 above and being used by Member Banks for PMEGP cases, will also form the basis for the selection of beneficiaries at agency level. Applications which do not score more than 60 marks out of 100 marks will be rejected with reasons and their score card sent to the applicant for rectification in future. Only applicants scoring 60 marks and above will be sponsored to the Banks by the agencies. Applications which do not conform to the scheme guidelines or which remain incomplete or irrelevant even-after consultation with the applicant will also be rejected by the concerned Nodal Officer, recording reasons for rejection. Reasons of rejection will also be conveyed to the applicant. Applicant can file grievance against such rejection to the State Director, KVIC. 

10 A Task Force, consisting of the following members, will be set up in each district to monitor the performance of implementation of PMEGP in their respective district on quarterly basis and submit report to the Commissioner/Principle Secretary (Industries); a. Dist Magistrate/Deputy Commissioner/Collector - Chairman b. PD — DRDA / EO — Zilla Panchayat - Vice Chairman c. Lead Bank Manager - Member d. Representative of KVIC/KVIB/DIC - Member e. Representative of NYKS/SC/ST Corporation - Special Invitee f. Representative of MSME-DI, ITI/Polytechnic - Special Invitee g. Representative from Panchayat - 3 members (To be nominated by Chairman/District Magistrate/ Deputy Commissioner/ Collector by rotation) h. Director RSETI/RUDSETI - Member i. General Manager, DIC of the District -Member Convener 

11 There shall be an On-line Grievance Portal and a Grievance Cell to be setup by the KVIC, HQ. The Grievance Cell will act upon the on-line complaints within 48 hours and direct the concerned State Officers to take necessary action. Applicant, if not satisfied with the recommendations of the implementing agency, can file grievance against such rejection to the GM, DIC or State Director, KVIC of the concerned State, whoever is senior. CEO, KVIC, CEO, KVIB and Pr. Secretary(Industry) will be appellants authority for respective cases.

12 The Bank will appraise the projects and take their own credit decision on the basis of viability of each project. No collateral security will be insisted upon by Banks in line with the guidelines of RBI for projects involving loan upto Rs.10 lakh in respect of the projects forwarded to them by the agencies. However, they will appraise projects both technically and economically after ensuring that each project fulfills inter alia the criteria of i. Industry ii. Per Capita Investment iii. Own Contribution iv. Rural Areas (projects sponsored by KVIC/ KVIBs/DICs) and v. Negative List (Para 30 of the guidelines) 

13 The Banks will either sanction or reject the loan application within a stipulated period. Sanction will be issued based on the online sanction letter and copies of the sanction order will be sent to the applicant (by e-mail/hard copy) as well as to KVIC/ KVIB/ DIC within 30 days from the receipt of application from the District Agencies. The sanction letter will also be automatically forwarded to the concerned RSETI, or where there is no RESTI the authorized training centre, for conduct of EDP training in case where the applicant has not undergone the training. The prescribed EDP training is mandatory before releasing of loan by the Banks. 

14 Applicants need not wait for sanction of loan but can undertake EDP training at any time after submission of the application form in consultation with State office of KVIC on payment of EDP charges. EDP will be run on self financing basis by KVIC.

15 The applicant will deposit his own contribution and copy of EDP training certificate with photo and aadhaar number to the financing bank within 10 working days, of receiving the communication of his sanction of loan. EDP certificate shall also be uploaded by the training institute. 

16 Bank will release the first instalment of the loan either in full or partly and submit the claim for Margin Money subsidy online through the on-line portal of Nodal Bank/KVIC Portal.  

17 The online claim form will be automatically checked for the fulfillment of two conditions (i) the date of release of first instalment is prior to the date of filing of Margin Money subsidy claim and (ii) the amount of first instalment released is more than the Margin Money subsidy amount claimed. KVIC will validate the subsidy claim and upload on to the Nodal Bank portal within 3 working days. 

18 Nodal Bank will transfer the Margin Money subsidy claim amount validated by KVIC to the respective financing bank branch within 24 hours of the receipt of validation. If the financing bank branch certifies that all the facts furnished in the claim are true and the above activity of the unit is not under the negative list of PMEGP scheme and is as per the norms and guidelines of PMEGP, validation by KVIC could be dispensed with and the MM claim will be sent directly to Nodal Bank portal for disbursement on line by the financing bank branches. 

19 Once the Margin Money (subsidy) is received in the Bank in favour of the loanee, within 24 hours it should be kept in the Term Deposit Receipt(TDR) of three years at branch level in the name of the beneficiary/Institution. No interest will be paid on the TDR and no interest will be charged on loan disbursed to the corresponding amount of TDR. 

20 SMS/e-mail alerts to the applicant will be automatically sent by the system at each of the above stages. 

21 In case the Bank's advance goes "bad" before the three year period, due to reasons, beyond the control of the beneficiary, the Margin Money (subsidy) will be returned to the KVIC alongwith the interest. In case any recovery is effected subsequently by the Bank from any source whatsoever, such recovery will be utilized by the Bank for liquidating their outstanding dues. 

22 Margin Money (subsidy) will be 'one time assistance', from Government. For any enhancement of credit limit or for expansion/modernization of the project, margin money (subsidy) assistance is not available except in case of units selected for upgradation through 2ndloan under this Scheme. 

23 Projects financed jointly i.e. financed from two different sources (Banks / Financial institutions), are not eligible for Margin Money (subsidy) assistance. 

24 Bank has to obtain an undertaking from the beneficiary before the release of Bank Finance that, in the event of objection (recorded and communicated in writing) by KVIC /KVIB/State DIC, the beneficiary will refund the Margin Money (subsidy) kept in the TDR or released to him after three years period. 

25 Banks / KVIC / KVIBs / DICs have to ensure that each beneficiary prominently displays the following sign-board at the main entrance of his project site:-

26 PMEGP portal should be enabled to capture the re-payment of loans by the PMEGP beneficiary. Nodal offices of concerned agencies viz. KVIC/KVIB/DIC will also visit the units at-least once in every 3months after their setting-up in order to check their status and provide necessary guidance/handholding & mentoring. PMEGP MIS portal should also be able to capture details of such visits by the concerned officer. PMEGP MIS portal should be able to capture details of the physical verification of the unit done by the third party agency as well as disbursements of Margin Money adjustment into the loan account of the beneficiary. 

27 The portal should have MIS which will ensure that there is no overlap between the loan sanctioned and disbursement through the financial year and enable generation of various reports including category wise, rural, urban, bank wise, district wise, state wise, year wise, industry sector wise, size of project wise etc.

28 Subsidy for upgrading of existing units(New provision) 

a. An additional component namely Expanding/Upgrading the existing unit set up under PMEGP/MUDRA has been added, wherein the units already setup under PMEGP/MUDRA and performing very well in terms of turnover, profit making and loan repayment will be selected for providing further financial assistance of upto Rs.1.00 crore for manufacturing units, through Banks with uniform subsidy of 15% by the government for all categories. For service/trading units the financial assistance would be upto Rs.25 lakhs only. 

b. Units would be selected uniformly from all over the country, about 10 from each district based on the population density, industrial development, availability of traditional skill/raw material etc. The selection of existing units for upgradation will be done by the State Level Bankers Committee(SLBC). 

c. KVIC will make relevant provision in the PMEGP-e-Portal alongwith simplified application form for submitting application by the existing units for up-gradation. 

d. The District level Agencies (KVIC/KVIB/DIC) after the preliminary scrutiny will forward the applications to SLBC, which will appraise the project both economically and technically and recommend the project to financing Banks for 2nd loar. The financing banks will claim the margin money subsidy as per the procedure prevalent for PMEGP units. The MM subsidy will be kept as TDR for three years. No interest will be paid on the TDR and no interest will be charged on loan disbursed to the corresponding amount of TDR. 

e. TDRs will be adjusted in the loan account after installation of the machinery to be included on the basis of positive report of joint physical verification by the implementing agency and bank