We all know from the last year we are facing a pandemic situation and till now it is not normalized. Many laborers who worked out of the states returned to their homes and do not have any work.
CMEPG (Chief Minister Self Employment Scheme) is the scheme introduced by Karnataka Government to create self-employment opportunities in the state. The aspirants from the rural area will be benefited from this scheme. The state government will provide them a subsidy on loan to start a new business. The scheme aims to support the bussing entrepreneurs from the rural territories. KVIB (Karnataka Khadi and Village Industries Board) District Officers and DIC (Joint Director of Department of Industries and Commerce) have the consultation with the government in this project.
The state government has decided to uplift the youth in rural areas and give them chance to carry out their start-up projects. This will also help the development of the rural areas and reduce the flow of extra manpower coming to the urban areas.
For long, our rural areas are due for development and if with the help of the government if they become independent then they will not need to move to the urban areas as there will be some balance in the advancement and progress of the state. The vision behind setting up this scheme is very simple and it is encouraging to those who are always looking to be on their own.
The interested entrepreneurs will get the loan from banks and the margin money will be provided by the Karnataka Khadi and Village Industries Board/District Industries Centers. The entrepreneur will have a loan account and the margin money will be adjusted from this account only after 3 years of successful establishment and running of the business. The progress will be governed by the board.
Objectives of the scheme
To provide and support self-employment in the state
To create employment opportunities in Karnataka
To empower rural youth of Karnataka
To provide entrepreneur development training
The maximum loan amount sanctioned under CM Self Employment Scheme is Rs 10 lakh.
Project Cost Component
Capital Expenditure Loan, one cycle of working capital. The general category entrepreneur needs to pay 10% of the project cost as a self contribution, and the SC/ST/OBC/Minorities/Women, Ex-servicemen; physically disabled category entrepreneur needs to pay 5% of the total project cost.
The government also has laid down some guidelines about the criteria of the project which are as follows:
The project must be a rural area project.
Per capita investment
Own contribution is needed for the CMEGP scheme.
A negative list and a unit must be a new one.
The government subsidy or margin money admissible under the CM Self Employment Scheme is as below:
|S No||Categories of Beneficiaries||The rate of Subsidy of a project cost|
|1||Area (location of project/unit)||Rural|
|3||Special (SC/ST/OBC etc)||35%|
The working capital must go up to 100% at least once to the limit of cash credit within three years of the Lock-in period of margin money and not less than 75% of the utilization of the sanctioned limit on an average. The lock period for the government subsidy is three years.
The financial agencies for the CM Self Employment Scheme are Public Sector Banks and Regional Rural Banks. The Government of Karnataka provides Entrepreneur Development (EDP) training under CM Self Employment Scheme. The training center where the training will be completed is the Centre for Entrepreneurship Development of Karnataka (CEDOK) and Rural Development and Self Employment Training (RUDSET)
The aspiring entrepreneurs from a rural area have to be eligible under the criteria laid down by the state government. The criteria are:
CMEPG Scheme applies to only the permanent residents of Karnataka.
One family can set up only one unit under the CN Self Employment Scheme.
The age limit for an entrepreneur for both the general and SC/ST/OBC, Minority special category is 21 to 35 years.
While applying for the scheme one has to submit some mandatory documents along with the application. The documents to be submitted are as below:
Detailed project report
Recent passport size photos
Educational qualification certificate
Voter ID/Ration card
EDP training certificate
Rural certificate for the proposed unit
Caste certificate in case of SC, ST, OBC, MIN
Physically handicapped certificate
There is also a facility to apply for this scheme online. You need to register yourself on the cmepg login portal where you will get your username and password. You will then have a cmepg bank login which will later help you to get the loan amount credited to it.
Once you do the registration on the portal you can anytime apply for the scheme. You will get all the information about what is required and how to do it. The cmepg login portal will provide you access to your account at all times. There is also information about the process of the loan approval and what documents are needed to upload.
Cmepg bank login will let you know about the status of your loan application. The state government has taken an initiative to support the rural youth and encourage them to become self-employed and independent. In the era of technology, it is expected that they know how to use technology.
When you visit the cmepg login portal, you will find the menu bar which will lead you to different options and there is also the option of login. The Government of Karnataka has made a system that will allow you to log in under cmepg Karnataka bank login.
What is EDP training?
The EDP training means Entrepreneurship Development Program to provide the knowledge and orientation about various managerial and operational functions. It is training provided to understand the basics of business.
How can I apply for cmepg?
You can apply for the scheme both online and offline. The scheme needs some criteria to fulfill and then you can apply for the scheme.
Who can apply for the scheme?
You need to fulfill some basic criteria after which you will be eligible for applying for the scheme. One of the major criteria is you must be a permanent resident of Karnataka state.
How can I know the status of my application?
While you apply for the scheme online or offline you will be given a reference number that can give you access to the status of your application. Also, you will receive an SMS when your loan is sanctioned.
Is there any age limit to apply for the scheme?
Yes, an applicant must be between the age group of 21 to 35 years while applying for the scheme.
What is the amount I can get as a loan?
As per the statement of the government, the maximum loan amount to be sanctioned is Rs 10 lakh. There will also be a margin money facility which will be adjusted in 3 years.
Is there any subsidy I can get on the loan?
Yes. If you are from a general category you are entitled to get 25% and if you are from SC/SC/OBC etc category you will be getting a 35% government subsidy.