PMEGP is the abbreviation for the Prime Minister Employment Generation Programme. It is a government-based credit linked subsidy scheme for providing financial assistance to those individuals who want to set up their new enterprises under the programme. The scheme was implemented at the national level by the nodal agency called Khadi and Village Industries Commission (KVIC). The PMEGP loan is distributed through State Khadi and Village Industries Commission Directorates, State Khadi and Village Industries Board, District Industries Centres, and banks at the state level. The PMEGP loan interest rate varies from 11% to 12% per annum.
PMEGP full form is the Prime Minister’s Employment Generation Programme. Under the PMEGP scheme, the Government of India offers a subsidy on various projects on the basis of different criteria. The maximum amount of the project/unit permitted in the manufacturing sector under the scheme is limited to Rs. 25 Lakhs, while the limit set for the service/business sector is Rs. 10 Lakhs.
You can apply for the second loan up to Rs. 1 Crore for upgradation or expansion of your PMEGP/REGP/MUDRA unit. The government subsidy available under the second loan varies from 15% to 20%.
Following are the key PMEGP loan details:
|Rate of interest||11% - 12% p.a.|
|Maximum project cost||Rs. 25 Lakhs for Manufacturing Unit & Rs. 10 Lakhs for Service Unit|
|Subsidy on project||15% to 35%|
|Age||At least 18 years of above|
|Eligible entities||Business owners, co-operative societies, institutions, charitable trusts, and self help groups|
|Education required||At least 8th pass|
|PMEGP loan process time||60 days|
The categories of PMEGP subsidy rate under the programme are given below:
|Categories of Beneficiary||Beneficiary’s Share of Total Project||Subsidy Rate (Urban) from Government||Subsidy rate (Rural) from Government|
|Special (including minorities, SC/ST, ex-servicemen, OBC, NER, physically handicapped, hill & border regions, etc.)||5%||25%||35%|
The PMEGP loan scheme interest rate usually ranges between 11% to 12% p.a., and the repayment tenure can vary from 3 to 7 years after an initial moratorium period of up to 6 months. The interest rate varies from bank to bank depending on the applicant’s profile, project cost and business stability.
Below are the documents required for PMEGP loan:
The Divisional/State Directors of KVIC in consultation with the Director of Industries of respective states and the Khadi and Village Industries Board releases local advertisements through electronic and print media inviting applications with project proposals from potential beneficiaries who are looking for starting a service unit or establishing an enterprise under the programme.
The process to apply for PMEGP loan yojana on the portal is mentioned below in steps:
You can check pradhan mantri employment generation programme loan application status through the PMEGP e-tracking system.
Following are the PMEGP loan eligibility criteria:
The maximum PMEGP loan limit is Rs. 25 Lakhs for the manufacturing unit and Rs. 10 Lakhs for the service unit.
For PMEGP loan SBI, Canara Bank, Bank of Baroda, HDFC and ICICI Bank are best.
Adjustment of PMEGP subsidy on working capital, i.e. refund of the subsidy on the difference between subsidy on the sanctioned cash credit limit and the subsidy on the admissible limit, should be done at the end of the three year period from the date of first disbursal of the loan or date of ending of lock-in period, whichever is earlier.
EDP is a programme for developing entrepreneurial abilities among the people. It refers to inculcation, development, and polishing of entrepreneurial skills into a person required to establish and successfully run their enterprise.
The PMEGP loan helpline number is 07526000333/07526000555