PMEGP Loans 2024: Why You Should Avoid These Common Mistakes

PMEGP Loans Overview :

The Prime Minister’s Employment Generation Programme (PMEGP) loan is a flagship program initiated by the Central Government to provide financial assistance to young entrepreneurs. In this article, we will discuss the eligibility criteria, process, and complete details of the PMEGP loan.

Eligibility Criteria for PMEGP Loan

To apply for a PMEGP loan, you must meet the following eligibility criteria:

• The applicant should not have availed of any government scheme earlier.

• The age of the applicant should be 18 years and above.

• The applicant should be an Indian citizen.

• The applicant should intend to start a business or profession.

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How to Apply for PMEGP Loan

The loan application process under PMEGP is rather simple. Following are the steps involved:

• Visit the official websites of the Khadi and Village Industries Commission (KVIC) or the State Khadi and Village Industries Board (KVIB).
• Select “PMEGP Loan”; thereafter, do the online application.
• Upload identity Proof documents, proof of address, and your business plan plan i.e.; Project Report.
• Print the acknowledgement receipt after submission.
• Your application, along with all the material submitted, will be sent to the concerned authorities for review.
• Once your application gets approved, the loan amount will be credited to your bank account.

Required Documents for PMEGP Loan

To apply for a PMEGP loan, you need to submit the following documents:

• ID proof (Aadhaar card, PAN card, etc.)
• Address proof (Aadhaar card, driving license, etc.)
• Business plan
• Project report
• Quotation for machinery and equipment
• Proof of ownership of land and building.

Benefits of PMEGP Loan

The PMEGP loan has several benefits for business owners, including:

• High loan amount: The maximum loan amount under the PMEGP program is Rs. 10 lakhs for the service unit and Rs. 25 lakhs for the manufacturing business.
• Low interest rate: The PMEGP loan has a relatively low annual interest rate, ranging from 11 to 12%.
• Subsidy: A 35% project cost subsidy is approved under the PMEGP loan, which will lessen the financial strain on their business activity.
• Easy Repayment: PMEGP allows for a maximum loan repayment length of seven years, which may make it possible for business owners to do so with ease.

Repayment Terms of PMEGP Loan

• Repayment Period: The repayment period for PMEGP loans is up to 7 years.
• Interest Rate: The interest rate on PMEGP loans is relatively low, ranging from 11% to 12% per annum.
• Moratorium Period: There is a moratorium period of up to 6 months, during which you do not need to repay the loan.

Important Websites :

• Khadi and Village Industries Commission (KVIC): www.kvic.gov.in
• State Khadi and Village Industries Board (KVIB): www.kvib.gov.in
• Ministry of Micro, Small and Medium Enterprises (MSME): www.msme.gov.in
• National Informatics Centre (NIC):

Entrepreneurs have a fantastic opportunity to obtain funding and launch their own companies with the PMEGP loan. The PMEGP loan can assist business owners in reaching their objectives because of its large loan size, low interest rate, and subsidies. Entrepreneurs can apply for a PMEGP loan and advance their company by simply completing the application process and eligibility requirements.

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