Do you know how much is the PMEGP Loan Process Time if you are planning to apply for PMEGP Loan? Well, I am going to share a few answers to all your queries about PMEGP Loan. PMEGP Subsidy Loan Scheme is the Prime Minister Employment Generation Programme that provides you credit with a linked subsidy. It was started by the government of India. According to this credit scheme the beneficiaries can avail of loans up to Rs 25 lakh and get a subsidy of 15 to 35% as margin money.
The subsidy amount depends on the total project cost. The loan of 60 to 75% is also provided by the bank the rest is to be arranged by the entrepreneur. The loan takes around 2 months to get sanctioned. It involves several formalities so it takes a long time. The government schemes give you more benefits so have more formalities to do.
You can surely get a PMEGP loan in 60 days if you have a good credit score. You are also required to submit your documents on time. If the bank doesn’t find you eligible for the loan it may reject your PMEGP Loan application in 15 days.
The PMEGP loan can be availed to Rs 10 Lakh and below for business or service. If you want to get a loan for a manufacturing unit, you can get the loan amount of Rs 25 Lakh from the bank. The repayment is to be done in 3 to 7 years as agreed upon between you and the bank.
The rate of interest for a PMEGP loan is around 11 to 12%. It is different in different banks. You can enquire about the interest rate by visiting the bank or checking on their official website.
PMEGP Loan Process Time
Table of Contents
- 1 PMEGP Loan Process Time
- 2 What should I do In order to speed up the PMEGP loan process time as a beneficiary?
- 3 How To apply for PMEGP Loan?
- 4 PMEGP Loan Project
- 5 PMEGP Interest Rate of Different Banks
- 6 PMEGP Loan Eligibility Criteria
- 7 Eligible Business Entities For PMEGP Loan
- 8 PMEGP 2nd Loan upto Rs 1 Crore
- 9 PMEGP Scheme Projects
The applicant for PMEGP Loan needs to wait for the next 2 months for his loan processing because the maximum PMEGP loan process time is 60 days. The PMEGP department informs you with PMEGP Loan Rejection Letter if your bank loan is rejected by the bank. It takes a period of a minimum of 15 days to inform you. Thus you need to surely wait for the first 15 days after submission of the PMEGP Loan application Process. Later 2 months is there before its getting sanctioned.
In two months you can complete your EDP Training from the EDP Training centre that Is allotted by the KVIC department. You might be wondering about the EDP training fee. Let me tell you, it’s free from the end of the applicant. So you just have to enrol for it.
The payment to the training centre is around 2000 to 2500 Rs for one applicant is paid by the KVIC department. You can attend the EDP training online from your comfort zone only. Offline training might also be available.
What should I do In order to speed up the PMEGP loan process time as a beneficiary?
You can follow these steps.
Plan in prior which business you want to choose among the business, service or manufacturing. It is going to generate employment for you and others so the business type should be the one that generates employment.
Now you need to plan for the expenses and investment so that the ideal project cost can be calculated. The minimum PMEGP Loan cost that you can invest is Rs 10 Lakh for trading business and service. You can also avail the loan amount of Rs 25 Lakh if you are going to start your manufacturing unit.
Discuss the business idea and plan with the officials of PMEGP and the bank manager because he is only going to sanction your loan.
How To apply for PMEGP Loan?
You have to apply for a PMEGP loan online and submit all the necessary documents be it your Identification, PMEGP Project report that is your business plan, address proof and EDP training certificate. You can submit all these on the E-Portal of the KVIC department. It is www.kviconline.gov.in
This process doesn’t end here. You also have to submit the printed copy of the complete project report to the bank. PMEGP will also forward it to the bank, you must also have a copy of it that you can present before the bank on demand.
The bank is going to use it to evaluate your business plan and decide to sanction your loan. The main objective of the PMEGP Subsidy Loan Scheme is that it can generate employment among youth in rural as well as urban areas.
PMEGP Loan Project
Helps to generate employment opportunities among the unemployed so that the youth doesn’t move to developed states of India or other countries and the talent remains in India.
To provide common ground for scattered artisans and the unemployed candidates residing in rural and urban areas so that they can come together and get self-employment benefits.
The government has decided to take favourable steps to prevent the movement of youth to better places in the country for employment purposes. They can now avail of loans and start there on businesses in their respective village or city and earn good without migrating.
The main aim of the PMEGP project is to increase income making capacity of youth and focus on the growing rate of sustainable living in the rural and urban areas.
PMEGP Interest Rate of Different Banks
The interest rates that the bank offers for PMEGP loans vary from branch to branch. Usually, the banks follow the guidelines laid by the RBI in India and the rules that PMEGP imply.
The interest rate of PMEGP loans is around 11 to 12% in all the banks. The subsidy that the PMEGP provides to the applicants varies from different financial institutions and banks. It depends on the profile of the applicant, credit worthiness, repaying capacity, financial stability, business plan, business tenure, cost of investment and project cost.
You can now get the PMEGP loan for your business from eligible banks in India that can be private or nationalized. The formalities of this bank may also vary.
The main financial institutions providing PMEGP loa in India are Canara Bank, Bank Of India, Bank Of Baroda, SBI etc.
You can also check for other financial institutions by visiting their E-portal or branches to enquire more about PMEGP loans.
PMEGP Loan Eligibility Criteria
There is always a fixed criterion that the banks lay for all the applicants who wish to have a loan from the bank. Let’s read about the eligibility status of PMEGP loans in India.
The government of India is offering PMEGP loans to applicants who seek employment and to organizations as well who wish to expand their business. The organizations that meet the eligibility criteria of PMEGP can now avail of the loan.
The eligible entities list that is eligible to get the PMEGP loan is here below.
The individuals should be qualified at least till VIII. They can get the PMEGP Loan and establish their own business that has a project cost of about Rs 25 Lakh for manufacturing units and Rs 10 Lakh for business and service.
The government gives you a subsidy between 15 to 35% depending on your eligibility and arranges around 90% of the loan amount. The remaining 10 or 5% is the contribution of the applicant.
Eligible Business Entities For PMEGP Loan
All the business owners and young entrepreneurs are eligible to take the loan under the PMEGP scheme. There is no collateral required for the loan amount up to Rs 5 Lakh. For a higher amount of loan, you need to present the collateral.
Self-help groups and charitable trusts can now get the loan to start their ventures and continue their services.
The societies that have been listed under the Societies Registration Act, 1960 in India can also get a PMEGP loan.
Co-operative societies that wish to deal in production can also avail the benefit of this government loan subsidy scheme.
PMEGP 2nd Loan upto Rs 1 Crore
You can now apply for the second loan under PMEGP scheme. According to the latest update of PMEGP subsidy scheme, the applicants whose repayment is right can get additional or 2nd loan in a gist of time.
You can thus avail second loan amounting to Rs 1 Crore in India and take your business to great heights. You can also enjoy the government subsidy starting between 15 to 20% under this government PMEGP subsidy scheme.
PMEGP Scheme Projects
- Agro-based Food Processing
- Chemical/Polymers & Minerals
- Dairy & Milk Products
- Electronic & Electrical Equipment
- Paper & Allied Products
- Forest Industry
- Waste Management
- Small Business Models
- Food Processing Industry
- Textile & Apparel
- Cement & Allied Products
- Cold Storage & Cold Chain Solution
- Horticulture-Organic Farming
- Plastic and Allied Services
- Service Sector Industry