PMEGP Loan – How to Apply?

PMEGP LOAN

PMEGP loan is for availing loan facility for businesses including manufacturing and service sectors. Almost 35% subsidy was given in this Scheme. The main aim of this scheme was to increase the entrepreneurs in India.

PMEGP will be a central sector scheme to be administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.

Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister‟s Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister‟s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.  

Quick Links:

1. Eligibility

2. Required Documents

3. Downloads

4. Objectives

5. Loan Details

6. Step by Step Procedure

7. Frequently Asked Questions (FAQ)

Eligibility to Apply for PMEGP Loan:

1.  Any individual, above 18 years of age

2.  There will be no income ceiling for assistance for setting up projects under PMEGP.

3. For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.

4.  Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.

5. Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.

6.  Institutions registered under Societies Registration Act,1860.

7. Production Co-operative Societies, and

8.  Charitable Trusts.

Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

Document Required to Apply for PMEGP Loan:

1.  Passport size Photo

2. Caste Certificate

3. Aadhaar Card

4. Pan Card (Optional)

5. Bank Details

6. Transfer Certificate (Optional for Illiterate)

7. Project Report for your Loan (Visit a good auditor or legal person to know more about this project report)

8. Population Certificate ( Visit you MRO Offices and Muncipal Offices in your city, Just you need to write a letter for Relevent officer in that office they will provide the certificate immediately)

9. Additional Document (Ex. Exserviceman, Person with Disabilitiy etc.,)

Downloads:

Objectives :

1. To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.

2. To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.

3. To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.

4. To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.

PMEGP Loan Details :

1. The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.

2. The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.

3. The balance amount of the total project cost will be provided by Banks as term loan

Step by Step Procedure :

Step 1: Visit the Official Website of PMEGP. It looks like this

Step 2: Click on the Online Application form for Individual

Step 3: A New Page will open. It looks like this

Step 4: Fill all the Details and Click on Save applicant Data.

Step 5: Upload all the Documents and Submit the Application.

Step 6: Click on Final Submission. Download the application for your reference. 

Step 7: Submit a copy of your Application form to nearest District Industries Center (DIC)

FAQ Most frequent questions and answers

• Which bank gives Pmegp / DIC Loan?

• Is Pmegp collateral free?

• What is the interest rate of Pmegp loan?

• What is the difference between KVIC and KVIB?

• What are the Financial Institutions for apply PMEGP Loan?

• How much will the bank Sanction to apply PMEGP Loan?

Have Question? We have the answers Most frequent questions and answers

• What are the Government Subsidies to apply PMEGP / DIC Loan Scheme?

• What are the Level of Funding?

• What is the Rate of interest and repayment schedule ?

• What is the rate of interest charged under UYEGP scheme?.

• How much will the bank Sanction?

• What is SIDBI's Part in PMEGP Loan?