Entrepreneurs play a significant role in changing the economy growth, through their innovative ideas & skills they execute in the market & become a game-changer for themselves as well as create numerous job opportunities. It helps to reduce poverty & unemployment. To enhance the participation of entrepreneurs Government of India launched various scheme & one among them was PMEGP.
What is PMEGP Loan Pradhan Mantri Employment Generation Programme?
The Khadi and village industries commission (KVIC) at national level initiated PMEGP Pradhan Mantri Employment Generation Programme credit linked subsidy scheme which aims to generate employment growth as well as this to promote self-employment opportunities through establishment of micro enterprises.
Key Features -
- Generate self-employment growth along with job creation.
- Helps to prevent migration of rurals for job seekers
- Beneficiary get subsidy 13% -35% of project cost
- Applicants can avail PMEGP loan up to 10 lacs
- Collateral-free loan facility is available
- Up to 95% project cost financed for manufacturing & service sector
Also Read:-Home Loan Process
Which Sectors are Eligible to get PMEGP Loan?
List of sectors covered under PMEGP loan are given in followings: -
- Manufacturing Sector
- Services Sector
- Textile Sector
- Mineral Sector
- Argo Based Food Processing Sectors
- Polymer & Chemical Based Sectors
PMEGP loan Pradhan Mantri Employment Generation Programme has certain eligibility criteria that need to be checked before loan application. Kindly through the following points: -
- Applicant must be a resident of India
- Applicant minimum age should be above 18 years
- Borrowers should at least passed VIII standard
- Institutions registered under Societies Registration Act-1860
- Self-help group, charitable trust & production co-operatives societies are eligible
- Under PMEGP scheme only new unit setup are financed
Documents Required for PMEGP Loan
PMEGP Mudra loan requires the following documents to be submitted at the time of loan application.
- Application form with attaching passport sized photographs
- VIII pass certificate
- Project report of business plan
- Special categories certificate (if required)
- KYC documents- (Aadhar Card, PAN Card, Voter ID, Passport & Driving License)
- Copy of Entrepreneur Development Programme(EDP) training certificate
- Proof of caste belonging categories like SC/ST/OBC & other minority communities
- Any other documents as required by banks
How to apply for PMEGP Mudra Loan Online?
Step 1: - Khadi and village industries commission (KVIC) have own official portal from where you have to fill the application form with following KVIC guidelines.
Step 2: - Ensure at each application filling page you have to save & click next to prevent data mislay.
Step 3: - Recheck after completion of application along with upload relevant required documents.
Step 4: - Once you finished your submission on web portal, shortly a User ID & Password shared to your registered mobile number.
Step 5: - Upon the User ID & Password you can access the KVIC Dashboard & able to track your application status.
Also Read:-SBI Personal Loan
PMEGP Mudra Loan FAQ
What is PMEGP Mudra loan?
Hon-ble Prime Minister Rojgar Yojana & Rural Employment Generation Programme altogether launched a PMEGP scheme under mudra loan to promote self-employment through establishing micro enterprises.
What is PMEGP loan Interest Rate?
Generally, starting 8% onwards rate is charged but bank to bank Mudra loan interest rate get varied.
Who are eligible for PMMY Mudra loan?
Under this scheme only existing business borrowers are eligible along specified categories segment are funded.
Can a women entrepreneur apply for Mudra loan?
Yes, Women entrepreneur with an ideal concept of business can apply for Mudra loan & get up to 10 lacs to startup business.
How much loan amount offered under PMMY scheme?
PMMY scheme divided into 3 categories named Shishu, Kishor & Tarun accordingly respective maximum loan amount of 10 lacs is granted.
How can I apply for Mudra loan online?
To apply online, applicant have to select the optional bank that come under PMMY Scheme – visit their official website-download the application form & fill them to submit with required documents.
Is there any separate application form for Tarun loan?
Yes, if you are applying for Shishu loan or Kishor loan general application form is used but in case you are applying for Tarun loan require separate application form that can be accessible at bank.
How much time given to repay Mudra loan?
To repay loan banks give tenure period ranging from 3 years to 5 years. If you want to repay loan before selected period then certain charges are levied.
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