PMEGP Loan Scheme Details | Apply Online: The Prime Minister Employment Generation Programme (PMEGP) may be a government of India subsidy scheme. Under this theme, beneficiaries will get a grant amounting to 15% to 35% of the project value from the government. PMEGP will provide you with the money help needed to line up a brand new project.
Objectives of the PMEGP Scheme
- To produce employment opportunities in India’s urban and rural areas by establishing new self-employment projects, small enterprises, and ventures.
- To facilitate self-employment opportunities for widely dispersed traditional rural and urban youth to the degree at their location.
- To generate property and continuous employment for rural and jobless youth and thereby halt their migration to urban areas.
- Income earning capability and focus on the expansion rate of each rural and concrete employment.
PMEPG Loan Scheme
Categories | Beneficiary’s Share | Subsidy Rate (Urban) | Subsidy Rate (Rural) |
General | 10% | 15% | 25% |
Special | 5% | 25% | 35% |
PMEPG Loan Limit
The PMEPG loan limit is Rs. 9.5 to Rs.23.75 lakh. The project value for the producing sector is at Rs. 25 lakh and capped at Rs. 10 lakh for the business. The beneficiary makes a 5% to 10% contribution. The bank credit can quantity to only 60% to 75% of the cost of the project as you receive the remaining 15% to 35% as margin money through the PMEGP scheme. Banks give the balance quantity of the project value as a term loan.
PMEGP Loan Interest Rate
Loans under the PMEGP scheme have regular interest rates between 11% and 12%.
Main PMEGP Loan Details
- Banks sanction funding up to 90% to 95% of the project cost.
- The government provides 15% to 35% as margin money.
- The bank provides the remaining 60% to 75% as a term loan.
- Interest rates are regular, from 11% to 12%.
- The repayment tenor is 3 years to 7 years after a preliminary moratorium.
Who can Apply for a PMEGP Loan?
- Any individual who is higher than eighteen years more will apply.
- The person should have passed at least the 8th standard for a manufacturing sector project costing above 10 lakhs.
- Self-help groups and production cooperative societies
- Charitable trusts.
Documents Needed
- Aadhaar Card
- Pan Card
- Project Report
- Special Category Certificate
- Rural Area Certificate
- Education Certificate
- Skill Development Training Certificate
- Authorization Letter
How to Make Online Application?
- Candidates should visit the official site of PMEGP online.
- Click on the online application form for individuals and for non-individuals.
- Fill out the entire form by entering details like name, sponsoring agency, type of activity, first financing bank, etc.
- Click on save applicant data.
- Upload documents and prepare for final submission.
- You will get an application ID and a password sent to your registered mobile number.
How to make an Offline Application?
- Fill in the needed data within the application form.
- After filling in all the data, save the form as a draft.
- Take a printout of the application form.
- Submit the output of the appliance form to the closest bank.
- Finish all the connected formalities performed by the several banks.
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