PMEGP Loan Scheme 2024: In India, Medium, Small and Medium Enterprises (MSMEs) are supported and encouraged through the Pradhan Mantri Employment Generation Program (PMEGP), a key government initiative. A PMEGP loan can be a lifesaver for aspiring entrepreneurs like you to get the capital you need to start your company. You must be eligible and have all the necessary documents together in order to apply for a PMEGP loan online. A wide range of borrowers are eligible for PMEGP loans, including sole proprietors, small businesses, not-for-profit organizations, charities, and manufacturers. Current companies established under other government programs are not eligible for this loan; it is for new companies only. In this article, we will be discussing more about the PMEGP Loan Scheme for 2024.
Loan eligibility and project costs are two of many variables that can affect loan amounts and grants. For applying for the loan, you must visit KVIC PMEGP’s official website, “https://www.kviconline.gov.in/,” or else you can visit the MSME’s official website, “https://www.msme.gov.in/.”. You can apply online, and you must remember the steps to apply step-by-step, which we will be explaining in detail in the later part of this article. You will be getting the loan, either personal, home, or any other loan type, quickly, and the maximum loan amount the loan scheme will be giving to the eligible members is just Rs. 50,00,000 for the manufacturing sector and Rs. 20,00,000 for the service sector.
When we talk about the eligibility criteria for applying for a loan, the candidate must be at least 18 years old and have at least an 8th grade educational qualification. Not only that, there shouldn’t be any income bracket for help under this loan scheme. Also, eligible members must be from MSME sectors, charitable trusts, production co-operative societies, and much more. PMEGP loans are not available to existing groups that are part of other government schemes or have already received grants. Below is the overview table that will give you an exact idea of the PM Employment Generation Program for 2024 that you must know in detail. So, let us get started without any further delay.
PMEGP Loan Scheme 2024 – Overview
| Loan Scheme | PM Employment Generation Program (PMEGP) |
| Loan Year | 2024 |
| PMEGP Loan (Interest Rate) | Varies |
| Loan Project Cost (Max) | Rs. 50,00,000/- (Manufacturing) and Rs. 20,00,000 (Service) |
| Project Subsidy (%) | 15 to 18 |
| Age Limit (Min) | 18 years |
| Eligible Members | Business Owners, Financial Institutions, Charitable Trusts, etc. |
| Educational Qualification | Class 8th Pass |
| Loan Procedure Duration | 60 Days |
| Repayment Tenure | 3 to 7 years |
| PMEGP Subsidy Rates (General) | 10% (Beneficiary Share), 15% (Urban Subsidy Rate), and 25% (Rural Subsidy Rate) |
| PMEGP Subsidy Rates (Special) | 5% (Beneficiary Share), 25% (Urban Subsidy Rate), and 35% (Rural Subsidy Rate) |
| Any Security Deposits | Not Applicable |
| Loan Providers (Banks) | State Bank of India, Canara Bank, Bank of Baroda, HDFC Bank, and ICICI Bank |
| Official Website (KVIC PMEGP) | https://www.kviconline.gov.in/ |
As we have already mentioned, the Pradhan Mantri Employment Generation Program, or PMEGP, is providing instant loans to all eligible members. The loan amount, or the maximum loan project cost, is around Rs. 50,00,000 for all the manufacturing sectors and Rs. 20,00,000 for all the service sectors. You will apply for the loan, and if it is approved, you will have to wait for a maximum of 60 days to get the amount, and the repayment tenure for that loan will be between 3 and 7 years, respectively. Let me make you clear: there are no security deposits for applying for the loan. When we talk about PMEGP subsidy rates, the beneficiaries for general categories will be charged 5%, and urban and rural subsidy rates will be charged 15% and 25%, respectively. For special categories, a 5% will be charged, and urban and rural subsidy rates will be charged 25% and 35%, respectively.
PMEGP Loan Scheme 2024 – Eligibility Criteria
Before you begin the online application procedure, you need to verify that your PMEGP loan scheme is eligible, and the following are the eligibility criteria that you must know in detail:
- You must be at least 18 years of age to apply for the loan scheme.
- You must be at least in 8th grade to apply for the loan scheme.
- You must be a member of any self-help groups, financial institutions, or trusts.
PMEGP Loan Scheme 2024 – How to Apply?
Following are the important steps that you are required to know in detail while applying for the PMEGP Loan Scheme for 2024:
- First of all, you must open any internet browser and visit the official website of KVIC PMEGP or MSME, which we have already mentioned earlier.
- Then, you need to create an account for free on any of those portals and proceed further with the log-in details.
- After that, you are required to select an application form based on your status, like the “individual” or “institutional” applicant option.
- Next, you need to fill out the application form with necessary details like your name, phone number, and others.
- Now, you must prepare some project documents and upload a few scanned documents to proceed to the final step.
- Finally, you can submit the application and wait for the loan to be approved.
Before the approval is done by the scheme authorities, you must make sure that there will be a confirmation message that will be received on your registered phone number within 24 hours, and the approval message will also be received after the loan is approved.
PMEGP Loan Scheme 2024 – Documents Required
There are several documents that are required to be uploaded in scanned format while applying for the PMEGP Loan Scheme for 2024, and the documents include: Aadhaar Card, PAN Card, Electricity Bill (Latest), Caste Certificate, Educational Certificate, and a detailed Project Report. When we talk about the project report, we mean a comprehensive report that explains your company’s vision, potential customers, and financial outlook.
Frequently Asked Questions – PMEGP Loan Scheme 2024
Ans: PMEGP gives loans to its eligible members.
Ans: The scheme provides a maximum loan amount of Rs. 50,00,000 for the manufacturing sector.
Ans: The scheme provides a maximum loan amount of Rs. 20,00,000 for the service sector.
