You can now enjoy the benefit of a PMEGP loan for a restaurant to start your food business in India. PMEGP is Prime Minister’s Employment Generation Programme. It is an initiative by our worthy Prime Minister who wished to increase employment opportunities in India. Thus, a government credit liked subsidy scheme is available for the youth who is at least 18 years of age and has passed at least class 8.
Any individual who is seeking to start his restaurant or eatery business can now start it with the support of the government of India. All you need to do is to prepare a Project Report For Restaurant and submit it on the E-Portal of PMEGP.
Well, the central government is trying to provide financial assistance to all the individuals who wish to initiate their food business in urban and rural areas. Since it is a small scale business so it doesn’t require any collateral security.
The rate of interest that you might have to pay for a PMEGP loan for a restaurant may depend on the bank you avail loan from.
You can get this loan at a nominal rate of interest by just filling out the PMEGP Loan application form for the restaurant. You can thus become an entrepreneur in the food business and enjoy sustainable living.
The government credit-linked subsidy scheme has made eligibility criteria for PMEGP loans. If you are eligible and fall under this criteria you can easily avail of the PMEGP Loan for the restaurant.
You can avail of a loan that amounts to Rs 10 Lakh for a restaurant business in India because it is a food service that you are going to provide to your customers and its limit under PMEGP loan is Rs 10 Lakh.
Table of Contents
- 1 PMEGP Loan For Restaurant
- 2 Can I Get PMEGP Loan For Restaurant?
- 3 Eligibility Criteria For PMEGP Loan For Restaurant
- 4 How can I Get PMEGP Loan For Restaurant in India?
- 5 Re Payment Tenure For PMEGP Restaurant Loan
- 6 Documents required for Restaurant Loan under PMEGP
- 7 How to Apply for PMEGP Loan For Restaurant Business?
PMEGP Loan For Restaurant
Keeping in mind the rising trend of the food business in India, the government has come up with a PMEGP loan scheme fa or restaurant that can provide financial aid to the chefs to start their businesses. Since it is a small scale business so it doesn’t require more money.
The government scheme is all set to provide financial aid to the entrepreneur who want to start a restaurant in urban and rural areas of the country. It will help them earn living for themselves and generate jobs for waiters in the country as well.
All the banks and financial institutions that are listed under the PMEGP department are ready to provide you with one. They offer you loans at a favourable interest rate with their terms and conditions.
The business PMEGP loan for restaurants falls under the Food and Beverage category. As a restaurateur, you might require a continuous flow of cash for meeting the daily requirement of working capital. The bank provides you loan to set up your restaurant. You can use this amount to create a classy ambience and meet day to day expenses.
You might require funds to buy edible items, give wages to the chefs and cooks and meet the logistic cost. All this requires money. Thus while you apply for a PMEGP loan for a restaurant, you need to prepare a Project Report For Restaurant and mention all the investment details and expenses in it so that the loan amount can be disbursed accordingly.
Can I Get PMEGP Loan For Restaurant?
You can for sure get a PMEGP loan for a restaurant because it is a part of the food and beverages business in India. You are eligible for this loan if you meet the below-mentioned eligibility criteria. Your restaurant should not include activities that are negative according to the PMEGP guidelines. It must not involve sauntering of meat or allow tobacco, cigar or cigarette in its ambience. No other illegal activities disliked by society must be performed on your premises.
Eligibility Criteria For PMEGP Loan For Restaurant
Although the eligibility criteria for a normal PMEGP loan sufficient, still you need to check out the updated eligibility criteria for PMEGP Restaurant Loan.
- As far as your education is concerned, you must be at least 8th pass. The chefs who would work in your restaurant may be trained and qualified but you as an owner need to be at least 8th passed.
- Your age should be at least 18 years because in India an 18-year guy is an adult. You must be an adult to avail this loan facility.
- You are eligible for a loan that amounts to 90% or 955 of the total project cost. The remaining amount for your business is to be arranged by you only. 90% is for the general category and 95% is for the special category applicants.
- The subsidy that you will get after a lock-in for three years also depends on your category.
- You must be ready with the down payment component that says you have to arrange the amount of your share and deposit with the bank which is 5 which0% of the total project cost. It depends on your category.
- You are eligible for the PMEGP loan for the restaurant f you have a sound financial record. That says you must not be a defaulter with any bank. You should be ready with the PMEGP project report for the restaurant because the bank and PMEGP will demand it online.
- Having a good 3 digit credit score is a must. It helps t get your loan approved at the earliest. If you are new to the market and don’t have a sound credit score you can begin It by availing yourself credit on a credit card and repaying it timely.
How can I Get PMEGP Loan For Restaurant in India?
You can easily get a PMEGP loan for a restaurant in India if you have a good management experience in the same field. Since the people of India have developed a good taste for eating food outside, it is difficult to meet the demands the customers raise in the eating business. If you can do it, you can get the loan as well.
The business of restaurant is quite promising and the bank can offer PMEGP loan to entrepreneur, company or partnership who is confident enough to run this unit successfully. In the loan amount of Rs 10 Lakh, a beautiful ambience for a restaurant can be made.
PMEGP can provide you with a restaurant loan as short term working capital and you can repay it in a period of 3 to 7 years. You can also meet your long term capital expenditure under PMEGP Loan for Restaurant.
- Like building a beautiful eatery in the town.
- Renovating an old restaurant and making a customer fit area.
- Acquisition of assets and machinery, furniture etc.
You need not get any guarantor for a loan amount that is less. If the loan amount is high you might be asked to present collateral security to be kept with the bank and get this loan as a secured loan. This depends on the bank you are applying for a loan.
Re Payment Tenure For PMEGP Restaurant Loan
You can repay the restaurant loan under PMEGP in a tenure of 3 to 7 years. The applicant can discuss with your banker about repayment and give it in writing as you will be asked to sign the documents where the repayment tenure will be mentioned by the bank. You can also enjoy a moratorium of 6 months.
Documents required for Restaurant Loan under PMEGP
The following documents should be submitted to the bank while availing of the PMEGP loan for the restaurant.
- Duly filled and signed pmegp loan application form
- 2 Passport photographs
- Professional written Project Report For Restaurant
- Identity proof: Voter ID, Driving License, Passport, Aadhar Card
- Residence proof: Voter’s ID, Driving License, Passport, Telephone Bill Electricity Bill
- Business address
- FSSAI Certificate
- NOC from the fire department
- Any other documents as required by the lender
How to Apply for PMEGP Loan For Restaurant Business?
Below mentioned is the complete process to apply for a pmegp restaurant loan in India.
Step 1: Visit the online portal of PMEGP or the KVIC department and fill in the loan application form. Once you fout fill out the form clicks on submit documents and add the documents online as per the order. Once you add all the required documents click on submit.
Step 2: Once the PMEGP department gets your loan application, you will get a call of confirmation from the department. It will inform you about the loan application being received and ask you to wait further.
Step 3: Now the loan application will reach the preferred bank. You might receive a call from the bank or a message from the PMEGP department to approach the bank. You can also check the loan application status on the E-Portal of PMEGP.
Step 4: The bank might demand the Project report for the restaurant and other documents from you. You must keep a complete copy of important documents with you in advance.
Step 5: The banker verifies the details provided by you and checks on your financial strength. He hereby accepts or rejects your loan. The information on the same is also sent to the PMEGP department by the bank.
Step 6: You can ask the PMEGP official or banker if you have to start the EDP training or not. If yes, you can start it online only with no fee. The complete fee of Rs 2000 or Rs 2500 is paid by the KVIC department only to the training institute.
Step 7: You are to present the training certificate to the bank then only it will disburse the loan amount in your account.