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Q155: Scenario: Mr. Raj wants to set up a manufacturing unit under PMEGP with a total project cost of ₹15 Lakh. He has completed his education only up to the 5th standard. Is he eligible for the loan under the PMEGP guidelines?

A
Yes, because there is no educational qualification requirement for PMEGP.
B
Yes, because the educational requirement applies only to projects above ₹25 Lakh.
C
No, because for manufacturing projects costing above ₹10 Lakh, the beneficiary must be at least VIII (8th) standard pass.
D
No, because the maximum project cost allowed for him is only ₹5 Lakh.
✅ Correct Answer: C
🎯 Quick Answer:
He is not eligible due to the educational constraint.
Concept Definition: Educational Eligibility Criteria.
Structural Breakdown: 1. The Rule: Educational qualification (Minimum VIII Standard Pass) is mandatory for: Manufacturing Sector projects costing above ₹10 Lakh.
Service/Business Sector projects costing above ₹5 Lakh.
2. Mr.
Raj's Case: His project is ₹15 Lakh (Manufacturing), which exceeds the ₹10 Lakh threshold.
Since he is only 5th pass (not 8th pass), he is ineligible for this amount.
He must reduce the project size to below ₹10 Lakh to be eligible.
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