PMEGP Government Loan Scheme, whose full name is Prime Minister Employment Generation Programme. This scheme of the central government is running in all the states of India. That is, eligible citizens of any district, tehsil or gram panchayat can take advantage of it. PMEGP Scheme 2022 or Prime Minister’s Employment Loan Scheme Application Before, you need to know that for whom is this scheme, what are the mandatory rules, laws or documents and what is the process of taking loan?
In this article, we have tried to give complete information about Prime Minister Employment Generation Program or PMEGP, hope you will get benefit from the information mentioned here –
Who is the PMEGP scheme for?
Let us tell you that the PMEGP scheme is only for those people of rural or urban areas who are going to start their new business. Apart from this, it is also mandatory to have the business being started, the service sector or the manufacturing sector.
Meaning of service sector To give some kind of service to the people. In this, many works like beauty parlor, common service center, computer institute have been included. But it does not include clothing, bike, card showroom etc. because these works come in trading activity.
Meaning of manufacturing sector Here it is from the production of a legal (legal) commodity. This includes items like textiles, food, plastics and many more. But any prohibited items like smoking, intoxicants are not included.
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How much loan can be availed under PMEGP scheme?
If you are opening a manufacturing unit, then you can get a maximum loan of up to Rs 25 lakh under the PMEGP scheme. On the other hand, if you are starting self-employment in the service sector, then you can get a maximum loan of up to Rs 10 lakh under this government scheme.
|Let us tell you that in the scheme, some part of the total loan amount given by the bank, the business owner also has to invest. This margin is 10 percent for general category applicants and 5 percent for SC / ST.|
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What is the eligibility of PMEGP scheme –
- People going to start brand new business
- Applicant’s education should be at least 8th pass
- Age must be more than 18 years
Although the maximum age limit of the applicant is not mentioned in the scheme, still people who are 50 years or less have a good chance of getting the loan. Because the bank also tries to avoid giving loans to older people.
How much subsidy does the Government of India give on PMEGP scheme loan?
Government of India gives 15% subsidy for general category and 25% for special category of urban area. Whereas in rural areas, 25 percent subsidy is given to the general category people and 35 percent to the special category people taking PMEGP loan by the government. In this, special category means being sc / st, obc, ex-serviceman or disabled.
Know the process of PMEGP loan approval –
Now the PMEGP loan applicants have been selected through the marking system. In the marking system some number out of 100 is given per applicant based on the applicant’s age, business plan, assets, marketing location, dependency on others etc. If the marking of the entrepreneur who applied for the application is more than 65, there is a good chance of getting the loan. ,
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Here is the process to apply online –
- Open www.kviconline.gov.in website
- Click on PMEGP Box
- in the next page PMEGP PORTAL click on
- After that click on ONLINE APPLICATION FOR INDIVIDUAL button
- Now by filling the online application form Save Applicant Data click on
- After that upload the project report DPR document
- After doing this your PMEGP application will be complete.
Whatever the further process will be, you will know by sms or email. Apart from this, you can know the status of the application by login on this portal.
Earlier PMEGP application was done in this way –
- Firstly online or offline application used to be
- Your application form first go to KVIC or DIC department
- Here the applications were scrutinized by the officials.
- After this the correct application was sent to the Forms Task Force Committee (DM, Collector).
- Finally, the selection or rejection was completed on the basis of the interview of the applicants.
But this system has now been abolished. Because in this the applicants did not find the whole process transparent.
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Who can have problem in getting loan?
- less educated people
- those who do not have a good understanding of business
- who are above 50 years of age
- People going to do business on rented land
- those who are more dependent on others
How to make DPR i.e. Detailed Project Report?
Preparing a detailed project report of your business is the most important and essential document. This report shows you the investment and selling profile of your business. On the basis of which the bank gets an idea how your company or business will grow, and the loan amount will be returned according to the given time.
If you have business savvy, then you can take the help of a charter accountant to prepare the DPR on your own or even. There are many sample project reports available on the PMEGP online portal, which you can take help of in your DPR.
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Benefits of PMEGP Scheme 2022 –
Under the Prime Minister Employment Generation Program, the Government of India gives a subsidy of up to 35% to all the business owners who take loans. Apart from this, entrepreneurs who pay their entire loan amount on time, they get an opportunity to get a loan of 1 crore again under this scheme. In which business owners of all categories have to pay 10 margin amount themselves, the rest is given by the bank. Not here PMEGP Maximum subsidy of second loan is up to 20 percent.
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PMEGP Udyog List 2022 –
- production food Industry
- handloom or paper Industry
- fiber Industry
- All industries in the service sector
- Goods or Services Production Industry
- Textile manufacturing industry, etc.
See the complete list of eligible industries in the scheme in this pdf – Open PDF