PMEGP Loan Benefits And Objective
Are you running a small business and looking for funding to enhance your business? Well if that is the reason then you have come to the right place. However, you are not alone and have capital-related issues. Further, arranging for adequate funds can be a challenging and hectic task for small and new businesses. That’s why we have got you covered with this article. In the fast-paced world, the government continuously does their best with innovative approaches. Therefore, the government of India has introduced the PMEGP Loan to strengthen the owners by providing funds. Nascent businesses can look for monetary assistance from the PMEGP scheme to run their operation efficiently. But most of you are concerned about how to apply for this portal. Don’t worry by the end of this article you learn each and everything related to this platform. Hence, continue reading.
What is the PMEGP Loan Scheme?
The complete form of the PMEGP is The Prime Minister Employment Generation Programme. Certainly, this scheme provides financial assistance for small enterprises. It is a credit-linked subsidy program launched by the Ministry of MSME to promote self-employment in the micro business sector. Further, the maximum amount that is disbursed inside the manufacturing sector is limited to 25 lakh rupees. On the other hand, the limit for the business and service sector is up to 10 lakh rupees. Under this scheme, the beneficiary is required to invest 5 to 10 per cent of the project cost. The government deliver a subsidy of 15 to 35 per cent of the project based on numerous criteria. After that, the remaining funds are delivered as loans by the participating banks to the owners.
What are the objectives of the PMEGP Loan?
The evident objective of this platform is to create jobs in rural and urban areas of India. Additionally, by establishing new self-employment and small businesses.
Indeed, to create a widely spread traditional craftsperson and unwaged youth in rural and urban areas to come together and create self-employment prospects.
Further, it prevents rural people from migrating to metropolitan cities in search of work. indeed, by providing the youth with stable and long-term employment.
It increases the income-earning capacity of craftspeople by focusing on improving the rate of rural and urban employment progress.
Benefits
The PMEGP bank loans usually come with modest interest rates. However, it is very easy for the business to repay the debts without suffering high costs.
The platform comes with government subsidies which reduces the financial burden on business owners and allows them to focus on growing.
It offers flexible repayment terms that allow the users to borrow to tailor the schedule of repayment according to their cash flow and revenue.
What are the eligibility criteria for PMEGP Loan?
Candidate must be at least 18 years old.
Must have completed your education until the seventh standard.
Charitable trusts.
Self-help groups.
Co-operative societies
Institutions are registered under the Societies Registration Act, of 1860.
Existing units under REGP, PMRY, or other State or Central Government schemes
How to apply for the PMEGP loan online?
To avail of the loan that is offered under the scheme online, you must have to follow some steps that are given below.
Firstly, you have to visit the website kvivonline.gov.in
After that, click on the first result that appears on your screen.
After, tap on the ‘Application Form for Individual’.
Further, you have to choose between two application forms first one is for the institutional applicant and the second one is for individual.x
Next, fill out the form by providing the necessary information, for instance, name, type of activity, educational qualification, agency, and bank details.
Once the form is filled, tap on the “save applicant data.”
Thereafter, upload your mandatory document as per the website and submit it.
This time, you will receive the application ID and Password to your registered mobile number.
What are the sectors can get a loan under the scheme?
Agriculture-based food processing
Forest-derived products
Handmade paper and fibre
Mineral-based products
Chemical and polymer-based products
Biotech and rural engineering
Textile
PMEGP Bank List
Public sector banks
The state-level task force committee headed by the principal secretary and commissioner
Private sector
SIDB
PMEGP Loan Interest Rate
Under this scheme, there is a standard interest rate which is charged. However, the rate of interest and subsidy offered depends on the bank. After that, it is calculated based on the borrower profile along with creditworthiness financial capacity and stability. Plus, the cost is invested in the total project. Usually, the interest rates vary between 11 to 12%. With an initial pause prescribed by the bank of financial institution. The repayment schedule normally ranges between 3 to 7 years.
Final say!
In brief, we have chatted a lot in this article about the PMEGP loan from its objectives to its features. Significantly, this innovative approach provides a lifeline to small business owners who are looking to achieve their organisational goals. After that, it provides attractive and attractive interest rates along with flexible repayment terms. However, these loans are provided for the financial support mandatory to fuel business growth. Therefore, if you are looking for the funds to kick start your business, then consider applying for this platform. That’s all to this article. If you have come so far by reading this article this far and found it informational then let us know with your comments. Toddles!
Disclaimer
This information in this article is meant to inform people about this platform. Always read the terms and conditions before applying for a loan.
