When there is a requirement of Bank loan, PMEGP (Prime Minister Employment Generation Program) loan is the cheap and best loan scheme due to its super features.
- pmegp central govt loan
- Huge Subsidy up to 35% under PMEGP loan scheme
- Suitable for rural and urban areas
- The loan amount is suitable for middle-class family
- Processed within 2 months
How much is pmegp loan limit?
If you talk about the loan amount, under this scheme, you can take a loan ranging between Rs. 10 lakh and 25 lakhs. Rs 10 lakh loan is for service sector which includes a retail shop, real estate, education, health, social work, computer services etc. Rs 25 lakh loan is for the manufacturing sector which includes producing goods out of raw materials i.e small-scale industry set up for manufacturing small goods.
How much will the subsidy get?
If you talk about subsidies it is up to 35% of the project cost. This means that if you take a loan of Rs. 20 lakhs, then you have to pay interest for only 13 lakh rupees. Rest will be taken care of by the Govt of India. You can refer the below chart for full details of subsidy category wise.
PMEGP loan application form and how to apply for pmegp loan?
To get a loan, you should have a project report first. If you can not create a project report by yourself then you can make the report from a financial advocate. Now submit your report to the District Industry Center (DIC). After the assessment By DIC you will be called for an interview. In this interview, you need to submit the details of the bank who is ready to give you a loan. If they are impressed the report will be sent to the bank for loan approval. The bank will again call you for the formalities for the loan. And ask for some documents for processing the loan. After the loan sanction, your site will be visited by the bank.
PMEGP loan process (online)
Documents required for pmegp loan. PMEGP loan eligibility
- Prepare a project report to submit while applying for a loan to KVIC/KVIB.
- Apply for online application in KVIC website.
- Identify the place where you want to start your project
- There will be an interview process by KVIC/DIC for your loan.
- Before interview talk to banks who are ready to give loan for your project.
- Get the letter from the bank who is ready for providing you a loan, and submit it during the interview with KVIC/DIC .
- PMEGP loan status can be checked online through its website.
- If your project is selected your application will be forwarded to the bank for further action.
- Submit all asked documents to the bank for processing your loan.
- Bank will process the application and they will do an inspection of your project place.
- After inspection loan is sanctioned by the bank.
- Submit your EDP training certificate to KVIC/DIC/KVIB and bank.
- Then only your subsidy will be sent to the bank by govt.