What is PMEGP Loan Scheme?: Prime Minister’s Employment Generation Programme (PMEGP) is a scheme implemented on different levels by different government. On national level is scheme by Khalid and village industries commission KVC. At the state level It is initiated by state Khalid and village industries board KVIBs and finally at district level it is regulated by district industries center DICs. All the three levels of govt govern the scheme on their respective level.

PMEGP is all for creating employment in the nation and routes the government subsidy through designated banks for eventual disbursal to the beneficiaries / entrepreneurs directly into their bank accounts without making a fuss. Let us further talk about what is PMEGP loan scheme?

Scheme Assistance

The maximum cost of the project/unit admissible in manufacturing sector is ₹ 25 Lakhs and in the business/service sector, it is ₹ 10 Lakhs. Categories of Beneficiary’s Rate under PMEGP (of project cost). Area (location of project/unit) General category 

15% (Urban)

25% (Rural)

Special 25% (Urban)

35% (Rural)

(including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.)

The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.

This is a gist about PMEGP, let us see how to apply in order to bear the benefits and what is PMEGP loan scheme? 

What is PMEGP loan Scheme?

A PMEGP subsidy is a financial assistance provided by the government to eligible entrepreneurs who set up new micro-enterprises under the Prime Minister’s employment generation programme (PMEGP). The subsidy ranges from 15% to 35% of the project cost, depending on the category and location of the beneficiary.

How to and who can Apply ? 

Who can Apply?

Getting the basic straight, individuals above 18 years of age can apply for the scheme. At least 8th standard pass child for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector. Only new projects are considered for sanction under PMEGP. Self Help Groups Institutions registered under Societies Registration Act, 1860; Production Co-operative Societies, and Charitable Trusts are also eligible.

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. 

How to Apply?

The state/ divisional directors of KVIC in consultation with KVIB and directors of industries of respective states will give advertisements locally through print and electronic media inviting applicatiosn along with project proposals from prospective beneficiaries of establishing the enterprise/ starting of service units under PMEGP.

The beneficiaries can also submit their application online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp and take the hardcopy of the application and submit it to the respective offices along with the detailed project report and other required documents. 

This is all about What is PMEGP Loan Scheme and who can and how to apply for PMEGP.

PMEGP Loan Interest rate

• The loan interest rates are from 11% to 12%.
• Banks allow funding up to 95% of the project cost.
• The govt provides 15% to 30% as margin money or PMEGP subsidy.
• The bank provides the remaining 60 to 75% as a term loan and working capital in the form of cash credit or in the form of composite loan consisting of working and expenditure capital. 
• The repayment tenure is about 3 to 7 years since preliminary moratorium. 

This is the loan interest rate structure of the scheme and to be strictly to be adhered. 

What is PMEGP Loan Scheme Loan Limit?

 The PMEGP loan limit is Rs. 9.5 to Rs. 50 lakh. The scheme caps the maximum project cost for the manufacturing sector at Rs. 50 lakh. It caps the cost at Rs. 20 lakh for the business/ service sector.

Doubts Resolved

Q1. What is PMEGP Loan Scheme interest rate for loan?

A1. The loan interest rate of PMEGP is from 11% to 12%.

Q2. What is the price of PMEGP?

A2. The price / fare of PMEGP is that the beneficiary has to contribute 5-10% of the project cost as their contribution. The remaining amount of the project cost is financed by banks.

Q3. What is PMEGP Loan Scheme Who is eligible for PMEGP scheme in Meghalaya?

A3. Eligibility for PMEGP scheme in Meghalaya is any resident of Meghalaya, above the age of 18 years. The beneficiary should possess at least VIII standard pass educational qualification for setting up of project cost above Rs 5 Lakhs.

Q4. What are PMEGP loan subsidy details?

A4. The PMEGP scheme offers a subsidy in the form of a money margin that ranges from 15% to 35% of the project cost, depending on the category and location of the beneficiary.

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Q5. What documents are required for PMEGP loan?

A5. The documents required are- Passport Size Photo, Project Report Summary or Detailed Project Report, Highest Educational Qualification, Rural area certificate (if applicable) Social or Special Category Certificate (if applicable).

Q6. How to apply for PMEGP loan online?

A6. The beneficiaries can also submit their application online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp and take the hardcopy of the application and submit it to the respective offices along with the detailed project report and other required documents.

Q7. What is PMEGP loan eligibility?

A7. Getting the basics straight, individuals above 18 years of age can apply for the scheme. At least 8th standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector.

Q8. What is PMEGP bank list?

A8. The banks included are –

Q9. What is PMEGP loan interest rate calculator?

A9. The scheme offers a subsidy on the project cost, which is calculated as a percentage of the margin money. The subsidy varies from 15% to 35%, depending on the category and location of the beneficiary. The remaining amount of the project cost is financed by the bank as a Term Loan.

Q10. What is PMEGP training?

A10. The PMEGP beneficiaries have to register on the online portal/mobile app through their registered mobile no. or the applicant ID of PMEGP e-portal.