How To Avail PMEGP Scheme Loan: The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked initiative designed by the Ministry of MSME to create jobs in both rural and urban areas.
In this article we will tell you How To Avail PMEGP Scheme Loan? The PMEGP scheme provides a maximum subsidy of 35% on total project cost. For service units, they cover up to Rs. 20 lakh while for Manufacturing Units they cover a maximum of Rs. 50 lakh.
Objectives of the PMEGP Scheme
The main four goals of the PMEGP are as follows:
- The scheme supports banks to finance new micro-enterprises.
- Generating jobs through the creation of new micro-enterprises or projects that are self-employment oriented in Indian rural and urban areas
- Increasing the capacity of artisans for income generation with emphasis on acceleration in employment growth in both rural and urban areas
- Setting up meeting points where young unemployed inhabitants of the rural and urban areas who are usually skilled artisans can be congregated together so that they can explore the possibilities of self-employment
Interest Rate charged by Banks under PMEGP Scheme
The interest rates and subsidies available under the PMEGP scheme differ from bank to bank based on such factors as credit worthiness, financial viability, ability to repay debt, duration of business, amount invested and overall cost of the project.
SBI, Bank of Baroda, Canara Bank, Bank of India, and several other private and public sector banks are among the qualified financial institutions that can apply for loans under the PMEGP.
Repayment Tenure Of PMEGP Loan
Following an initial moratorium as specified by the Bank, the repayment schedule may span three to seven years.
Eligibility Criteria on PMEGP Loan
- The minimum age requirement for applicants is eighteen.
- The beneficiaries must have completed at least eight standard passes in school.
- Assistance is limited to newly launched projects.
- There is no income cap on support for project setup under PMEGP.
- Before the loan can be approved and released to the beneficiary, they must complete the required EDP training.
- Business owners and entrepreneurs
- Self-help Groups (SHGs) & Charitable Trusts
- Societies that are registered under the Societies Registration Act of 1860
- Production Co-operative Societies
Documents required for PMEGP Loan
When submitting an application for a PMEGP loan, the following documents is needed:
- Application form with passport-sized photographs
- Project report
- Applicant’s Identity & Address Proofs
- Applicant’s PAN card, Aadhaar card & VIII Pass certificate
- Special category certificate, if required
- Certificate of Entrepreneur Development Programme (EDP) training
- Certificate for SC/ ST/ OBC/ Minority/ Ex-Servicemen/ PHC
- Certificate of academic and technical courses
- Any other document required by the Bank or NBFC
Steps to Apply for PMEGP Scheme Loan Online
You can submit an online application to upgrade existing units through the PMEGP online portal using the streamlined application form. The process for online application is given in details below:
1. Go to PMEGP’s official website and fill out this online form by clicking on a link. It is accessible through https://www.kviconline.gov.in/pmegpeportal/jsp.
2. Follow the prompts on the page and complete all requested information while applying online for PMEGP.
3. After filling in all required information, click on “Save Applicant Data” before you can save your completed forms.
4. Upload all supporting documents after saving your data, then submit the whole application form.
5. Upon finishing and submission of an application, the applicant’s ID number and password will be sent to the registered mobile number.
What are the steps to check PMEGP Loan application status?
1. Either visit kviconline.gov.in/pmegp/, the official PMEGP website or use this link.
2. After you press “Login Form for Registered Applicant”, a new page appears with fields for login or password.
3. Press “Login” once ID and password are entered.
4. Finally, you must click on “View Status” to know how far your PMEGP loan application has gone now.