CM Self Employment Scheme (CMEGP)

Last updated : December 17th, 2019 05:05 pm

CM Self Employment Scheme (CMEGP)

The Government of Karnataka has introduced the Chief Minister Self Employment Scheme (CMEGP) to create self-employment opportunities in the State. Under CMEGP scheme, Government provides a subsidy on loan for the rural entrepreneurs to start a new business. The Karnataka Government implements this scheme in consultation with District Officers of Karnataka Khadi and Village Industries Board (KVIB) and Joint Director of Department of Industries and Commerce (DIC). In this article, we will look at CM Self Employment Scheme (CMEGP) in detail.

Objective of CMEGP Scheme

The objective of CM Self Employment Scheme (CMEGP) as follows:

To create employment opportunities in Karnataka
To provide and support self-employment in the state
To empower rural youth of Karnataka
To provide entrepreneur development training

Loan Details

The maximum project cost allowed under CM Self Employment Scheme (CMEGP) is Rs.10.00 lakhs per unit.

Component of Project Cost

Capital Expenditure Loan, one cycle of working capital. The general category entrepreneur need to pay 10% of project cost as own contribution, and the SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically disabled category entrepreneur have to pay 5% of project cost.

Criteria of Project

The main criteria of the project for obtaining a loan under CM Self Employment Scheme (CMEGP) are explained in detail below:

The project should be Rural Area project
Per capita investment
Own contribution is needed for CMEGP scheme
Negative list and the unit should be a new one

Government Subsidy

Government Subsidy or Margin Money admissible under the CM Self Employment Scheme (CMEGP) is tabulated here:

Sl.No	Categories of beneficiaries	The rate of Subsidy of a project cost
1	Area (location of project/unit)	Rural
2	General Category	25%
3	Special (including SC / ST / OBC / Women Minorities/ Ex-servicemen, Physically handicapped)	35%

Working Capital at least once should touch 100% limit of Cash Credit within three years of Lock-in period of M.M. and not less than 75% of the utilisation of the sanctioned limit on an average. The lock period for Government Subsidy is three years.

Financial agencies

The financial agencies for CM Self Employment Scheme (CMEGP) are Public Sector Banks and Regional Rural Banks (RRB).

Entrepreneur Development Training

The government of Karnataka provides Entrepreneur Development (EDP) Training under CM Self Employment Scheme (CMEGP). The EDP training will be completed at Centre for Entrepreneurship Development of Karnataka (CEDOK) and Rural Development & Self Employment Training (RUDSET).

Eligibility Criteria

The eligibility criteria for CM Self Employment Scheme (CMEGP) are explained in detail below:

CMEGP scheme is applicable only for the permanent residence of Karnataka
The family can set-up only one unit under CMEGP scheme

Age Limit of Entrepreneur

Sl.No	Categories of Beneficiaries under CMEGP	Age of beneficiaries
1	General Category	21	35
2	Special (SC / ST / OBC /Minority Special (SC / ST / OBC / Minorities/Women, Ex-servicemen, Physically handicapped)	21	45

Documents Required

The following documents are required for CMEGP scheme is listed below:

Detailed project report (DPR)
Recent passport photograph
Educational qualifications
Age proof
Voter ID/Ration Card
EDP training certificate
Rural certificate for the proposed unit
Ex-servicemen certificate
Permission from Gram Panchayat
Caste Certificate in case of SC, ST, OBC, MIN
Physically handicapped certificate
List of machinery to be purchased

Date for Application Submission

The government of Karnataka will give advertisements locally through official website of CMEGP, print and electronic media inviting applications along with the project proposals from prospective beneficiaries desirous of establishing the enterprise or start of service units under CMEGP.

CM Self Employment Scheme offline Application Procedure – Offline Method

The procedure for applying CM Self Employment Scheme (CMEGP) is explained in detail below:

Step 1: You need to access the Joint Director District Industries Centre District and District Officer Karnataka Khadi and Village Industries Board District.

Step 2: Submit an application form for CM Self Employment Scheme in the prescribed format along with the supporting documents. Provide the following details in the application form:

Name of the applicant
Father’s/Husband’s Name
Gender and Date of Birth
Address and Category
Qualification
Details of EDP
Address of proposed Unit
Finance details

We have here with attached an application form for CM Self Employment Scheme:

ANNEXURE-1

Step 3: After verifying the application and documents, the concerned authority will sanction the loan.

CM Self Employment Scheme Online Application Procedure

The procedure for applying CM Self Employment Scheme (CMEGP) through Online is explained in detail below:

Step 1: The entrepreneur needs to access the home page of the Chief Ministers Self-Employment Generation Programme (CMEGP) Karnataka.

Step 2: From the home page, select the Online Application option. The link will redirect to new page.

Image 1 CM Self Employment Scheme (CMEGP)

Step 3: From the new page, select the agency and provide the Aadhar number. Once the Aadhar number is verified. The application form will be issued.

Step 4: You need to provide all details in the CM Self Employment Scheme application such a Name of the applicant, Father’s/Husband’s Name, Gender and Date of Birth, Address and Category, Qualification, Details of EDP, Address of proposed Unit and Finance details.

Step 5: Once the application form is filled, click on the save button and then take a print out of CMEGP application form.

Step 6: Submit the application form along with the relevant document to Joint Director District Industries Centre District and District Officer Karnataka Khadi and Village Industries Board District.

After verifying the application and documents, the concerned authority will sanction the loan.