Step By Step Guide on How To Apply For PMEGP Loan

How To Apply For PMEGP Loan in India

The Prime Minister Employment Generation Programme is a fund lending subsidy programme that is launched by the department of MSME to promote employment opportunities for the entrepreneurs of urban and rural areas.

With the support of the PMEGP loan scheme, the Government of India is offering funds and subsidies to the businessmen in India that are around 35% depending on the project and its cost.

The project cost that is funded under the PMEGP loan scheme is Rs 10 lakh for business and service rendering projects and 25 lakh for manufacturing firms.

PMEGP Scheme works under two main protocols. The Prime Minister Rojgar Yojana and Rural Employment Generation Programme. These both work similar to each other and generate employment opportunities among the Indians.

As a manufacturer or a trader you just need to invest 5 to 10% of the project cost rest is on the shoulders of the PMEGP bank loan facilitator to provide you with financial assistance. The government also provides you with a subsidy of 15 to 35% depending on your eligibility.

The banks that offer PMEGP loans to the entrepreneurs offer them at competitive rates. Let’s discuss them further.

Step By Step Guide on How To Apply For PMEGP Loan

PMEGP is a programme implemented by Khadi and Village Industries Commission that functions as a government agency that works at the national level.

If you want to apply for a PMEGP loan you need to read till the end.

  • Begin with a business idea that will serve as a guideline and tell the banker what you want to do. The first step is to decide whether you want to be a businessman, manufacturer or provide some service.
  • Once you decide upon this, you have to choose the location, and building, and look for the plant and machinery that you will be using.
  • Keep your Project report ready for Prime Minister’s Employment Generation Programme. If you can write it on your own, well and good. If not, we can guide you to write one. The project report is the complete business plan that you will submit along with the bank loan application form and other documents.
  • Now apply for the PMEGP loan online or offline. It is completely your choice.
  • Now you have to participate in the DLTFC interview. DLTFC is the district level task force committee that is going to evaluate your business plan and if it says you are eligible, you will get the loan.
  • Now you are supposed to contact the bank branch with all your documents and convince the banker to give you a loan. It will help you get the loan sanctioned. You have to deposit your contribution now.
  • The bank will ask you to attend the compulsory EDP Training for the next 10 days and this is free.
  • Once you submit the training certificate, you will get the PMEGP Subsidy. You will get the subsidy amount as TDR which is a term deposit receipt for the next 3 years.
  • The subsidy gets credited to your account after 3 years only and the disbursement is done after confirming that your unit is still working.
  • Now you don’t have to pay a rate of interest from the date of receiving the subsidy. The subsidy for the general category is 15% for an urban area, 25% for a rural and the special category gets 25% subsidy for urban area and 35% for rural area.

Features of PMEGP loan

  • It provides a credit-linked subsidy to support MSMEs.
  • The rate of interest varies from bank to bank. It usually lies between 11 to 12% annually.
  • The minimum age for a PMEGP loan is 18 years at the time of taking the loan.
  • The maximum PMEGP loan amount for a manufacturing unit is Rs 25 Lakhs.
  • The maximum PMEGP loan amount for a business and service company is Rs 10 Lakh.
  • The subsidy that PMEGP provides to the borrowers is between 15 to 35% depending on the eligibility and type of business.
  • The eligible entities for a bank loan under PMEGP are the businessmen, the service sector, charitable groups, institutions, and cooperative societies.
  • All the negatives business are excluded from this facility.
  • The minimum qualification for PMEGP Loan is 8th pass.

How To Apply for PMEGP Loan Online

  • You have to follow the following steps to apply for a PMEGP loan online.
  • Go to the official website of PMEGP and fill out the form there.
  • Keep following the guidelines that the form gives in front of you. You can use your information to fill in the details.
  •  Once you are done filling in the required details, click on the save option. This will help you to save your data. Now you need to upload all the documents that you have already collected. Along with this submit the online application form as well.
  • Once your application is complete and you are done with submitting it, you will get an ID number and password on your registered e-mail ID. This ID you can use further to check the status of your loan.

How To Apply for PMEGP loan Offline

  • You have to visit the bank and collect the online loan application form. This form you can get online also as it is the same.
  • After that, fill all the required information is to be filled by you and submit it in the bank.
  • Take the printouts of the documents that you have to present in the bank along with the PMEGP project report and the eligible documents too.
  • Finish the other formalities that the bank wants from you.

How To Check PMEGP Loan approval status from PMEGP E-Tracking System

  • Go to the official website of PMEGP.
  • Click on the login and add your user ID and password that you received on your mail or mobile number. The window opens.
  • You can now check the PMEGP loan application status by clicking on view status.

Beneficiary Eligibility Conditions For PMEGP Loan

  • The age of the applicant should be at least 18 years.
  • The financial assistance is provided only for new and latest projects.
  • Self-help groups and the individuals below the poverty line cannot avail this benefit.
  • The institutions that have been registered under the 1960 act, cannot avail of this facility.
  • The units and business houses that have already availed of the PMEGP subsidy are further not eligible for the same.

PMEGP Bank Finance

The bank now sanctions 90% of the entire project cost for the entrepreneurs of the general category and 95% of the special category. The amount is disbursed so that you can set up your project.

The bank finances capital expenditure in the name of term loans and cash credit in the form of working capital.

The negative list of Activities excluded under the PMEGP loan

  • The company deals in sauntering of meat in any form like processing, serving items or canning.
  • The production and manufacturing that deals in the intoxicant items like cigarettes, tobacco, cigar etc. don’t avail of PMEGP loan.
  • The hotel that serves tobacco, alcohol etc are not in the list.
  • The industries that deal in tea, coffee, and beverage business can avail of PMEGP loan. The horticulture, floriculture etc too. Additional value is available to this business under the PMEGP loan scheme.
  • The industry related to animal husbandry businesses like poultry, piggery etc can get the PMEGP loan from any financial institution.

PMEGP Loan Apply 2022 Last Date

PMEGP is a credit subsidy policy that starts by the Ministry of Medium, Small and Micro Enterprise that are working from 2008-to 09. The PMEGP loan scheme creates self-employment by helping people establish their micro-units.

The central government provides financial aid very happily to the beneficiaries. As such, there is no last date for PMEGP Loan Apply 2022. You can apply online according to your need.

Prime Minister Employment Generation Programme 2022 Scheme

  • You can check out the latest and modified PM employment generation programme scheme 2022 by reading further.
  • The second loan amount is Rs 1 crore which the existing borrowers can avail because they are performing the repayment on time. It gives a good opportunity to the beneficiaries to upgrade their subsidy to 15%.
  • CUY which is the provision of Merging Coir Udyami Yojana in PMEGP has started.
  • The continuous monitoring and evaluation have begun.
  • You need to mandatory submit the Pan card and Adhaar card.
  • As per PMEGP Scheme 2022, the business that serves and sells non-vegetarian food items has now been in the category to avail of PMEGP loans. The hotels that serve non-vegetarian dishes and drinks also can avail of the PMEGP subsidy loan.
  • The working capital for manufacturing units is stable at 40% of the project cost. For the business and service sector, the capital factor is 60% of the total cost of the project.

PMEGP 2022

The cabinet committee on economic affairs takes further the PMEGP. Khadi and Village industries commission is the main body that implements this scheme at the national level.

Interested candidates can now fill out the PMEGP Loan Application Form 2022 on the official website to avail of the subsidy loan facility. The central government has taken the step to provide financial help to the needy and young entrepreneurs.

The government is ready to provide Rs 1 Crore loan for manufacturing houses and Rs 25 Lakh for the service sector with a subsidy of 15 to 20%.

What is the PMEGP Loan Apply Process?

The entire process for a PMEGP loan revolves around filling in the important details that start online.

  • Adhaar Card Number
  • Name of the Applicant
  • Sponsoring Agency
  • State
  • District
  • Sponsoring Office
  • Legal Type
  • Gender
  • Date Of Birth
  • Special Category
  • Social Category
  • Qualification
  • Communicating Address
  • Mobile No
  • E-Mail
  • Pan Number
  • Unit Location
  • Proposed Unit Address
  • Type Of Activity
  • Industry Name
  • EDP Training Undertaken
  • EDP Training Institute Name
  • Project Cost
  • Bank Details
  • Alternate Bank Details
  • Want to avail CGTMSE
  • Where did you hear about PMEGP?

Fill in all the necessary details and submit the documents along with the business project report. You are half done. Here starts the process of the bank.

Frequently asked questions on How To Apply For a PMEGP loan

What are the procedures to apply for a PMEGP loan?

It is very simple to apply for a PMEGP loan. You can apply it online and offline both. If you apply online you save a lot of time and cost. If you don’t have much knowledge and need a banker’s advice only, you can apply for it offline. You can check out our step by step guide to avail PMEGP loan.

How do I apply for a PMEGP loan online?

It is very simple to apply for a PMEGP loan online. Just go to the online portal of PMEGP. Fill in the loan application form. Along with submitting the online PMEGP loan application form, you have to submit the necessary documents as well and here you are done. You can check out the complete format in our article as well as which documents you will need at the time of submission. I recommend you to be prepared beforehand.

How can I apply to get a loan under the PMEGP loan?

When you want to start a business and want to avail PMEGP loan you should be clear about the PMEGP project report that clearly states every important information about your business plan. You can submit online and offline applications for the PMEGP loan.

How can I apply to get a PMEGP loan for existing?

You can get a PMEGP loan for existing business up to Rs 1 crore If your repayment is timely. You just need to fill out the online form for the Second PMEGP loan.

Who can apply for a PMEGP loan?

Any entrepreneur who wants to start his own business or manufacturing hub can get a PMEGP loan. You should not be a defaulter in any bank and provide accurate about yourself to the bank while filling out the loan application document as well as in documents.

Where to apply for a PMEGP loan?

You can apply for a PMEGP loan online and offline. You have to apply for it on the official website of PMEGP.

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