PMEGP Loan Eligibility and Documents
The scheme is implemented by the Khadi and Village Industries Commission (KVIC), which serves as the national nodal agency.
The scheme is implemented at the state level by State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks.
In such cases, KVIC routes government subsidies through designated banks for eventual disbursement directly into the bank accounts of the beneficiaries/entrepreneurs.
PMEGP Loan Eligibility
Individuals and other organizations that meet the specified criteria for such a term loan are eligible for the PMEGP loan. The following are the eligible entities that can apply for loans under the PMEGP:
-
Individuals must have completed Class VIII of schooling in order to establish a manufacturing unit costing more than Rs. 10 lakh or a service unit costing more than Rs. 10 Lakhs
-
Self-help Groups (SHGs) and Charitable Trusts are examples of eligible entities for loans under the PMEGP scheme
-
Societies registered under the Societies Registration Act of 1860
-
Cooperative Production Societies
There are no income restrictions for loans under the PMEGP scheme. Loans are only available to new units and are not available to existing units established through PMRY, REGP, or any other government scheme.
Furthermore, any unit that has received a subsidy under another scheme is ineligible for the PMEGP loan.
PMEGP Loan Documents
Loans under the PMEGP Scheme require the submission of certain documents. When applying for a PMEGP loan, the following documents are required:
-
Completed application form with passport-sized photos
-
Report on the Project
-
Proofs of Identity and Address for the Applicant
-
PAN card, Aadhaar card, and VIII Pass certificate of the applicant
-
If a special category certificate is required, it must be obtained.
-
Training for the Entrepreneur Development Programme (EDP) Certificate
-
SC/ST/OBC/Minority/Ex-Servicemen/PHC Certificate
-
If applicable, a certificate of completion for academic and technical courses.
-
Any other documentation that the bank or NBFC requires
What is the PMEGP?
The PMEGP scheme incorporates two previous schemes, namely the Prime Minister Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP), which were both aimed at creating jobs for the youth.
Under this scheme, the beneficiary is only required to invest 5-10% of the project cost, while the government provides a subsidy of 15-35 percent of the project cost based on various criteria. The remaining funds are provided to the entrepreneur as term loans by the participating banks.
What are the Objectives of the PMEGP?
The objective of PMEGP is –
-
To create employment opportunities in both rural and urban areas by establishing self-employment ventures.
-
To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, as well as unemployed youth, in order to halt rural youth migration to urban areas.
What is the Scope of the PMEGP?
The scheme applies to all viable (technically and economically) projects in rural and urban areas that fall under the microenterprise sector.
-
The maximum project cost allowable in the manufacturing sector is Rs.210 Lakhs, and the maximum project cost allowable in the business/services sector is Rs.10 lakhs.
-
Only one member of a family is eligible for financial assistance under the scheme.
-
Only new projects are eligible for assistance under the scheme.
-
The scheme's assistance will not be available for activities listed on the scheme's negative list.
How Can I Get a Business Loan Through the PMEGP Scheme ?(Online)
The following are the steps for an individual to apply for PMEGP Online:
-
Step 1: Go to the PMEGP official website (Khadi and Village Industries Commission website) and fill out the form online.
-
Step 2: Follow the instructions for completing the online PMEGP application and fill in all of the required information based on your information.
-
Step 3: After entering all of the required information, click on ‘Save Applicant Data' to save the completed derails.
-
Step 4: Once you've saved your data, you'll need to upload all of the documents for the application form's final submission.
-
Step 5: After completing and submitting the application, the applicant's ID number and password will be sent to his/her registered mobile number.
How to Apply for Loans Through the PMEGP Scheme?(Offline)
-
Step 1: Fill out the application form with the necessary information.
-
Step 2: Once all of the information has been entered, save the application as a draft.
-
Step 3: Print out the application form.
-
Step 4: Deliver the application form printout to the nearest office.
-
Step 5: Complete all of the formalities required by the respective bank.
Internal Links
- GST on Personal Loan
- GST Registration Online
- Documents Required for GST Registration
- How to Cancel GST Registration
- GST Registration Status Check
- Income Tax Benefit on Home Loan
- Income Tax Slabs for FY 2020-21
- Tax Benefit on Personal Loan
- Top 5 Websites for Filing ITR Online in India
- How to Download Your ITR-V Form
- Income Tax Aadhar Link
- Stamp Duty Charges in Mumbai
- Stamp Duty Charges in India
- Stamp Duty Charges in Bangalore
- Pradhan Mantri Awas Yojana Details
- Apply For PMAY Scheme Online
- PMAY Eligibility Criteria
- Pradhan Mantri Awas Yojana List
- Mudra Loan
- Mudra Loan Eligibility
- How to Apply Mudra Loan Online
- MSME / SME Loan
- Gold Loan
- Mortgage Loan
- Types of Mortgage loans
- PF Loan Details
- Know About EXPERIAN Credit Score
- Know About CIBIL Score
- Important Banking Terms You Should Know
- Housing Finance Companies in India
- Microfinance Institutions in India
- PMEGP Loan Scheme
- PMEGP Loan Eligibility Documents
- CGTMSE Scheme
- Financial Inclusion Schemes in India
- Aadhar Bank Link
- Link Aadhaar with Mobile Number
- Pan Aadhaar Link
- Link Voter ID with Aadhaar Card
- Link UAN with Aadhaar Card
- Ration Card Aadhar Link
- Income Tax Aadhar Link
- How to Check PF Balance without UAN Number
- Employee Provident Fund Details
- Download E-Aadhaar Card
- How to Activate UAN Number
- EPF Balance Check