Latest News | BIZ-CHEATING-PMEGP  Govt Cautions Public Not to Fall Prey to Cheating in the Name of PMEGP Loans 

New Delhi, Nov 6 (PTI) The MSME Ministry on Friday cautioned the general public and potential entrepreneurs against falling prey to cheating in the name of its flagship scheme Prime Minister's Employment Generation Programme (PMEGP).

The ministry's alert comes in the backdrop of some instances being reported whereby potential entrepreneurs/beneficiaries were approached by private persons or agencies offering loans under PMEGP scheme and handing over loan sanction letters and cheating the entrepreneurs by charging money from them.

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"Ministry has warned the unscrupulous elements against cheating general public in its name and it has been informed that the Ministry has already taken up the matter with the police authorities for proper investigation and action," it said in a statement.

The PMEGP is a central sector credit linked subsidy scheme being implemented by the Ministry of MSME since 2008-09 to assist first generation entrepreneurs for setting up micro enterprises across the country.

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Under the PMEGP Scheme, the entire process of application and fund flow, right from receipt of application to sanction and release of loan by banks to the applicants, has been made online through only one government portal run by the Khadi and Village Industries Commission.

The whole process is totally free of cost. No private party/agency/ middlemen/ franchise, etc. is engaged or authorized for promoting and sanctioning PMEGP projects or providing any financial assistance under PMEGP scheme, the statement said.

"Instances of potential entrepreneurs/beneficiaries being approached by private persons or agencies offering loans under PMEGP Scheme and handing over loan sanction letters and cheating the entrepreneurs by charging money from them is totally illegal and absolutely fake," it said.

The ministry advised the general public to remain cautious of such unscrupulous elements.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)