The PMEGP Loan Interest Rate is different from one bank to another. You can check out the complete list of banks that provide PMEGP loans to entrepreneurs and interest rate details in the article below.
PMEGP the Prime Minister Employment Generation Programme that started in 2008 is a credit-linked subsidy scheme. It was launched by the government of India. You can not get a subsidy on the latest business projects. It has some eligibility criteria that the government and financial banks follow.
The PMEGP loan interest rate is 11% or 12%. It may vary from one bank to another. There may hardly be a major difference.
Table of Contents
- 1 PMEGP Loan Interest Rate
- 2 PMEGP Scheme and Interest Rate
- 3 PMEGP Loan Interest Rate Canara Bank
- 4 Features of Canara Bank PMEGP loan
- 5 PMEGP Loan Interest Rate SBI Bank
- 6 SBI PMEGP Loan Features
- 7 Objective Of PMEGP Loan Scheme
- 8 What Does PMEGP Loan Offer
- 9 PMEGP Self Investment
- 10 PMEGP Subsidy Urban Area
- 11 PMEGP Loan Bank List 2022
PMEGP Loan Interest Rate
The interest rate that is applicable for PMEGP beneficiaries is the normal rate of interest that ranges between 11% to 12% by almost all the banks of India. The interest rate may also vary according to your documents. The tenure for repaying the loan amount is 3 to 7 years maximum. If you are not in the position to pay the term loan timely, you can enjoy a moratorium period of 6 months.
PMEGP Scheme and Interest Rate
PMEGP has come forward to merge two old government schemes that worked with similar goals and benefits as PMEGP. Those two schemes are Prime Minister Rozgar Yojana and The Rural Employment Generation Programme.
The main objective of these two schemes and PMEGP is to promote employment in the country by providing financial help to new entrepreneurs in both rural and urban areas. It is to help them set up their businesses and units.
As a result, these initiatives help more people get employment and the programme succeeds to promote employment and foster the growth of the country’s economy. It also provides help to the community to begin their new ventures.
PMEGP is operated by the Ministry of Micro Small and Medium Enterprises. The Khadi and Village Industries Commission looks after the implementation of PMEGP guidelines on the national level.
The PMEGP scheme at the district level is looked after by the district industries centres and financial institutions that can be banks.
PMEGP Loan Interest Rate Canara Bank
Canara Bank also offers PMEGP loans to entrepreneurs because it is also a participating bank to promote employment in the country. You can avail of the PMEGP loan amounting to Rs 10 Lakh for your business and Rs 25 Lakh for manufacturing.
The interest rate in Canara bank for PMEGP loans is 12.05% per annum. You might also need to pay some processing bank. A further detail you can get from the Canara Bank near me. The loan repaying tenure will be between 3 to 7 years.
Features of Canara Bank PMEGP loan
- Easy to avail loan for business, service or manufacturing.
- The affordable interest rate for general and special categories.
- The documentation requirement is minimum.
PMEGP Loan Interest Rate SBI Bank
SBI PMEGP loan is available to entrepreneurs who are into manufacturing, business and service. You can get loans for small and micro-sized businesses. You can also get a PMEGP loan from SBI Bank for the manufacturing unit. The bank offers a PMEGP loan at an 11 to 12% per annum rate of interest only.
The repayment tenure is 3 to 5 years along with 6 months of the moratorium period. You can avail working capital finance, project finance, and business finance in the form of a PMEGP loan. The State Bank Of India is all set to help you meet your funding requirements.
Depending upon the project cost, you can get this loan scheme from SBI with less documentation and formalities. EDP training is a must.
SBI PMEGP Loan Features
Following are the features of the PMEGP loan from SBI bank.
Diverse Array Of Loans
You can now avail of a loan from the State Bank of India for business, service and manufacturing houses. The project cost depends upon the size of the business. SBI offers you a PMEGP loan for small and medium setups.
The interest rate of PMEGP loans from SBI bank is low. It may range between 11% to 12% only annually. Loan sanction depends on the business plan you create. You should therefore Present PMEGP Project Report will every important detail in it.
Collateral Free Loan
You need not present any security that is collateral for availing PMEGP loan from SBI Bank. No collateral is for a loan that amounts up to Rs 10 Lakh. You might need to present the security for the loan amount that is up to Rs 25 Lakh.
Easy Application Process
You can easily apply for a PMEGP loan from SBI bank. The process of applying for a PMEGP loan from SBI is simple and quick. You can go through the online process because it takes a couple of minutes for you to complete it.
Flexible Repayment Tenure
Since the payment tenure for an SBI PMEGP loan is between 3 to 7 years. You can therefore flexibly choose your tenure and also enjoy the moratorium period of 6 months.
Objective Of PMEGP Loan Scheme
The main objectives and goals for which the PMEGP scheme is initiated are the following.
- To generate employment opportunities in the country in both rural and urban areas.
- It helps individuals to set up their businesses, new projects, ventures and micro-enterprises.
- To Provide a genuine structure for all and generate a source of self-employment opportunity so that artisans and other unemployed can get work opportunities for themselves and others in the country.
- Since the unemployed are moving to other places in the country for jobs. PMEGP is there to eliminate this thought from their minds by proving them financial assistance to start their business in their region only.
- You now have a stable mode of employment in your area. This provides financial aid to artisans and other unemployed to secure seasonal employment as well.
- The PMEGP loan scheme boosts the income of the artisans and their capacity to work so that the employment rate increases in the entire country.
What Does PMEGP Loan Offer
The PMEGP is a type of term loan that is offered to young entrepreneurs so that they can start their businesses. The rate of interest is specific for every bank and depends on the project.
The exact specification of a PMEGP loan depends on various factors. Here are the important factors that let you know how much financial assistance the loan will offer you.
PMEGP Loan Amount
The scheme of loans started by the government of India offers a loan that amounts to Rs 10 Lakh and Rs 25 Lakh. The loan amount depends on the sector of your business and the total cost of the business project.
Loan amount that is offered to the business and service sector is Rs 10 lakh. The loan amount that is offered to the manufacturing sector is Rs 25 Lakh.
PMEGP Self Investment
You also get to share your self-investment if you are an entrepreneur in the PMEGP loan scheme. For general category candidates, the share of your investment in the business is 10%. For the candidates of the special category, it is 5%.
The government sanctions the rest of the amount which is 90 to 95% depending on the amount that falls under your category.
PMEGP Subsidy Rural Area
When you apply for a PMEGP loan you just not only get the loan amount that matches 90% of your project cost but also get a subsidy. This subsidy of a certain amount or percentage of the project cost. The subsidy is also called the margin money. It is 25% for the applicants of rural areas in the case of the general category and 35% for special category applicants.
PMEGP Subsidy Urban Area
For the applicants residing in the urban area, the subsidy percentage is 15% for general category entrepreneurs and 25% for special category businessmen.
Along with the subsidy, the PMEGP loan is availed an interest rate of 11% to 12% per annum. The loan repaying tenure is 3 to 7 years. You can also enjoy the moratorium of 6 months in case there is a delay in repaying the loan.
The PMEGP loan that amounts to up to Rs 10 Lakh for business and service doesn’t require any collateral security. It is very much required for the loan that the manufacturing firms avail that is up to Rs 25 Lakh.
The PMEGP loan provides you with much needed cheap credit for your ventures and business units across the country. Although the business might have a growing or expansion needs and may require more financial aid. In this case, you can choose the customized loan facility from the bank. You can apply for the same online.
PMEGP Loan Bank List 2022
Well, almost all the banks in India are providing PMEGP loans to entrepreneurs so that they can start their ventures. All the banks follow the guidelines of RBI for providing PMEGP loans too. You need to apply for a PMEGP loan online only and later contact the bank branch to get cash credit.
The list of PMEGP bank loans is as follows.
- IDFC First Bank
- Kotak Mahindra Bank
- Indian Bank
- Canara Bank
- Bank Of India
- Bank of Baroda
- Central Bank Of India
- State Bank Of India
- HDFC Bank
- Axis Bank
- ICICI Bank