PMEGP Scheme Details, Financial support is essential for a business’s survival and expansion in addition to its initial launch. A new company or an MSME might raise cash in a number of ways. Still, nothing compares to obtaining it from a reliable and safe source. A government program called the Prime Minister’s Employment Generation Programme (PMEGP) gives MSMEs financial support to meet their operational needs. Let’s take a closer look at the PMEGP program.
Contents
What is the PMEGP Scheme?
The Prime Minister’s Employment Generation Programme was initiated in 2008 by the Government of India (GOI) with the aim of creating jobs and offering financial support to micro, small, and medium-sized enterprises (MSME). It is a combination of the Prime Minister’s Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP), two earlier-running GOI programs. The PMEGP scheme’s objectives were shared by both of these programs.
According to the plan, the business owner must pay between 5% and 10% of the project’s overall cost, with the Government of India contributing 15% to 35% of the total after deducting other costs. In addition, the financial institution provides a term loan to cover the remaining balance. It is the responsibility of the Khadi and Village Industries Commission (KVIC) to oversee the PMEGP program.
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Here are some of the key details of the PMEGP:
| Interest rate | Depends on the bank (typically up to 12% p.a.) |
| Minimum age of the applicant | 18 years |
| Minimum educational qualification of the applicant | VIII passed subject to terms and conditions |
| Government subsidy rate | 15% to 35% depending on rural or urban projects in general or special category |
| Maximum project cost | ₹50L for manufacturing units and ₹20L for service units |
| Entities | Entrepreneurs, MSMEs, Co-operative Societies, Charitable Trusts, Self Help Groups, etc. |
Objectives of PMEGP
- To provide new microenterprises in India’s rural and urban areas with financial support from the government and banks
- To start new businesses in order to generate long-term job possibilities, particularly for women and young people.
- To promote self-employment among the unemployed youth of the country
- To increase job prospects in rural areas in order to reduce forced migration to urban areas
- To promote the establishment of microbusinesses in both conventional and contemporary industries
- To improve the nation’s overall economic growth by fostering the establishment of new companies and job possibilities
How can you get a loan under the PMEGP scheme?
Businesses must complete the application in order to receive the benefits of the plan. The application requires information on the project, the business establishment, and other relevant documents. Any one of the PMEGP project’s four objectives must apply to your submission. These are the following:
- Creating MSME projects in rural or urban areas to increase employability
- To encourage and support ethnic handicrafts and artisans and to give young people options for self-employment.
- Increase rural employment possibilities to reduce seasonal unemployment and discourage migration to cities.
- Raise the average person’s income in both urban and rural locations.
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Documents Required to Apply for a PMEGP Loan
This is the list of supporting materials you must include with your application.
- Aadhar card
- PAN card
- Project report
- Caste/Special category (if needed)
- Rural Area certificate
- Letter from the authority
- Educational certificate and others
Eligibility criteria for getting a loan under the PMEGP Scheme
In order for your application to proceed through the PMEGP loan process, you need to meet the funding’s eligibility requirements. These are the following:
- You have to be an adult, which means you have to be at least 18 years old.
- The PMEGP loan application requires a minimum of a class 8 pass, meaning that the applicant must have finished their basic education in order to be eligible for a loan of at least Rs. 5 lahks for the establishment of a service unit and Rs. 10 lahks for the establishment of a manufacturing unit.
- Beneficiaries below the poverty level who have not benefited from any other program
- Self-Support Associations
- Cooperative Societies for Production and Charitable Trusts
- Only new businesses will be eligible for loans under the PMEGP program.
PMEGP Loan Details
We will go over the specifics of the loan procedure in this section, including funding distribution, interest rates, loan terms, and more.
- Loan Allocation: Up to 95% of the project will be funded by the financial institution if the loan is granted. The candidates are required to pay the remaining sum. KVIC will offer up to 15% to 35% of the total amount as a subsidy, out of the 95% of funding provided by the financial institutions.
- Interest Rate: The term loan’s interest rates will be determined by taking into account the MSME sector’s interest rates.
- Loan Tenure: The PMEGP loan has a maximum three-year payback period.
- Businesses under the PMEGP Scheme:
- Agriculture & Food Processing
- Forest-Based Products
- Hand Made Paper and Fibre
- Mineral Products
- Polymer and Chemical Products
- Rural Engineering and Bio-Tech
- Service and Textile
Why choose FlexiLoans for the PMEGP scheme?
Flexi Loan is a fintech company that gives a line of credit score to agencies which will sustain, develop and extend their horizons. we provide loans even to candidates with barely terrible credit score histories due to the fact we hire a distinct approach for comparing credit scores. regardless of how large or wherein your organization is, flex loans can meet all your needs. please get in contact with us in case you want any shape of monetary support. we employ synthetic intelligence to expedite the mortgage processing system, And following file verification, we immediately transmit the budget.
Benefits of availing of the PMEGP loans from FlexiLoans
- Minimal paperwork: Facilitates a quicker and easier processing of the loan amount
- Funds according to need: readily available and with a variety of adaptable choices use the loan amount.
- Simple terminology for repayment: We reduce your strain by implementing automated repayments with the use of state-of-the-art technologies.
- Unrestricted withdrawals: Don’t worry about the quantity or frequency of withdrawals; just use the money as you see fit.
- Minimal interest rate: Interest rates on company loans that are competitive when compared to those of other lenders or financial organisations giving businesses a line of credit
- Tax advantages Since the interest is subtracted from gross income, businesses are able to claim tax deductions.
Eligibility Criteria of FlexiLoans
To be eligible for an online business loan from FlexiLoans, an individual must meet three simple requirements. These are the following:
- Age Criteria: Minimum 21 years of age
- Business Life: Your business must be a year old
- Monthly Turnover: The business should have a monthly turnover of 2 lakhs
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Conclusion
The PMEGP program list can be a huge help in realising your business expansion goals, particularly if you’re just starting out. Government subsidies can significantly lessen the strain of making EMI payments. Additionally, the PMEGP loans do not require collateral, which is advantageous for start-up companies. To become a financial partner in the project, you can get in touch with us at any moment. We can be reached by simply clicking on our link!
Faq’s
Q. To whom is the PMEGP lending scheme list open?
Ans: Loan applications under the PMEGP scheme are accepted from candidates who have passed the VIII level and are at least eighteen years old.
Q. What is the highest amount that may be obtained through the list of PMEGP loan schemes?
Ans: A maximum loan of Rs. 25 lakh for the establishment of a manufacturing unit and Rs. 10 lakh for the establishment of a service unit is available under the PMEGP plan.
Q. Are there any criteria regarding collateral for PMEGP loans?
Ans: Indeed. Under the PMEGP program, the candidates receive a collateral guarantee from the MSME ministry. Furthermore, under the PMEGP scheme, collateral is not required for projects up to Rs. 10 lakh in cost.
Q. To what extent does the system apply government subsidy or margin money?
Ans: Each applicant’s experience differs according to their eligibility and a number of other considerations. Generally speaking, government subsidies fall between 15% and 35% of the project’s overall cost.
Q. How long does it typically take to process a PMEGP loan?
Ans: A 16-day training period must be completed by the candidate before they may apply for the loan. It takes around two months to process all the legalities after the course is over.
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