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.
The entrepreneur who is interested to avail this benefit will be provided loan from the banks and the Margin Money will be provided by Karnataka State Khadi and Village Industries Board/District Industries Centers. This Margin Money will be adjusted to loan account of the Entrepreneur only after 3years of Successful establishment and running of the Units.
Objectives
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 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 below:
| 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
Government Subsidy or Margin Money admissible under the CM Self Employment Scheme (CMEGP) is below:
| Sl.No | Categories of Beneficiaries under CMEGP | Age of beneficiaries |
| 1 | General Category | 21 to 35 |
| 2 | Special (SC / ST / OBC /Minority Special (SC / ST / OBC / Minorities/Women, Ex-servicemen, Physically handicapped) | 21 to 35 |
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
Caste Certificate in case of SC, ST, OBC, MIN
Physically handicapped certificate