Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q151: Consider the following statements regarding the "Own Contribution" (Beneficiary's Share) required under PMEGP:

Beneficiaries under the General Category must contribute 10% of the project cost from their own sources.




Beneficiaries under the Special Category (including SC/ST/Women) must contribute only 5% of the project cost.




The own contribution must be deposited after the sanction of the loan but before the release of the first installment.
Which of the statements given above are correct?
A
1 only
B
1 and 2 only
C
2 and 3 only
D
1, 2, and 3
✅ Correct Answer: D
🎯 Quick Answer:
All statements are correct.
Concept Definition: Promoter's Contribution (Margin). Structural Breakdown: 1. General Category: Must bear 10% of the project risk.
2. Special Category: Must bear only 5% of the project risk.
3. Process: Banks sanction 90-95% of the project cost.
The beneficiary deposits their share (margin) at the bank, which triggers the release of the loan and the subsequent claim for the government subsidy.