PMEGP is one of the most popular loan schemes for the youth these days. PMEGP full form is Prime Minister’s Employee Generation Program. This program was started with the motive of providing financial help to small entrepreneurs and startup businesses. This was a combination of two different government schemes like the Rural Employment Generation Program (REGP) and Prime Ministers Rojgar Yojana (PMRY).
Coming to the PMEGP loan details, as a business owner, you will have to invest at least 5 to 10 percent of the business cost. You will receive a subsidy from the government for 15 percent to 35 percent depending on what kind of business you are into. The rest of the amount that you will need for setting up the business will be provided by the banks. The PMEGP loan interest rate usually depends on the lending bank. It changes from bank to bank, and it can be anywhere between 11 percent and 13 percent.
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Only certain banks provide you the PMEGP loans, and you can look for the PMEGP loan bank list on the internet. The list is easily available, and once you find the best bank with the best interest rates, you can start with the PMEGP online application process. It does not take a lot of time of yours.
Basically, loans are provided for the manufacturing and service sectors in businesses. For a manufacturing unit, the loan amount can be up to Rs 25,00,000 and for a service-providing unit, the loan amount is going to be up to Rs 10,00,000. Any small business owner, cooperative societies, institutions, self-help groups, and charitable trusts can apply for this loan.
Coming to the eligibility criteria, the person applying for the PMEGP loan should be at least 18 years old, and they should have completed their 8th grade at least. You will have to provide address and identity proof for applying for this loan. You can provide an Aadhar card, PAN card, Project report, education proof, caste certificate, and special category certificate and others, if any, based on the details you provide in the application process.
PMEGP loan can be applied in two ways, PMEGP online apply and offline application as well. The online process is going to be very simple and can be done anywhere. If you wish to apply for the PMEGP loan, then here is the process for applying. Khadi and Village industries commission is responsible for providing these loans.
Applying for a PMEGP loan online:
- Visit the Khadi and Village industries commission website.
- You will have to select a PMEGP loan, and the application will appear.
- Fill in all the details that you are asked for in the PMEGP loan application. You just need to make sure that you are filling in all the correct information.
- Once you are done, then you will have to save the application and then proceed to document uploading.
- For Once this step is completed, you will submit the application.
- You will receive credentials to log in and check the loan status after the submission of the loan application.
Applying for PMEGP loan offline:
The process for applying offline also remains the same as you do it online. You need to fill in all the details and save the application. For the offline process, you need not have to submit the documents online. You just need to take a printout of the saved application and then attach all the required documents and submit it to the respective bank for approval. Once the loan is approved, the amount will be credited to your account.
You will have to complete the application with the correct information for faster approval of the loan application.