Revealing this, Mysore District Industries Centre (DIC) Joint Director M Shivashankar said at the weekend, the scheme was being modelled on the lines of the Central scheme which offers Rs 25 lakh loan facility for those young entrepreneurs who established new industries under the PMEGP scheme.
The credit-linked Prime Minister’s Employment General Programme, under the Union Ministry of Micro, Small and Medium Enterprises (MSMEs) provides financial assistance to new industries with the objective to generate continuous and sustainable employment opportunities in rural and urban areas, to provide a continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises, and to facilitate participation of financial institutions for higher credit flow to micro sector.
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Since the scheme’s inception in 2008, over 62,000 projects have been financed with total assistance of over Rs 5,000 crore, creating over 2.07 million job opportunities till 2013-14, according to the government.
Shivashankar said, those aspiring to start small industries were of the opinion that obtaining a bank loan is difficult.
However, if they provided a viable project report with details on production, marketing, financial repayment and thus create confidence in the bankers, bank loans could be obtained.
Banks, on their part, should properly inform such entrepreneurs of all the details on the documents required to sanction a loan and guide them properly, he said while addressing an awareness programme on ‘Sustainable Financing to Optimise Growth of MSMEs’, jointly organised by the Associated Chambers of Commerce and Industry of India (Assocham) Mysore Industries Association (MIA) and DIC.