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PMEGP Loan Scheme 2024: Hello friends, if you are keen to start your own business but lack sufficient funds, then today we have great news for you. The government has launched a new Pradhan Mantri Employment Generation Program (PMEGP Aadhar Card Loan Yojana 2024). This scheme provides loans ranging from Rs 20 lakh to Rs 50 lakh to start your business venture.
If you do not know about PMEGP Loan Scheme 2024, then do not worry. In this article we will provide you all the necessary information to apply online for PMEGP loan. Now, starting a new business with PMEGP loan has become easier than ever. Let us now know about PMEGP Loan Yojana 2024 in detail:
Get a loan of Rs 50 lakh with Aadhar card
So for this, first of all we see here how much loan you get under this PMEGP scheme, so here you can see 50,00,000 for manufacturing unit and 20,00,000 for service unit and this is the maximum amount. Meaning if you want to do any manufacturing work here, then you can get a maximum service loan of 50,00,000 here. You will get it easily under this scheme.
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What is PMEGP Loan Yojana 2024?
- Scheme Name- PMEGP Loan Yojana 2024
- Loan Type- PMEGP Loan
- Who can apply? -All Indian applicants can apply
- Mode of Loan Application -Online
- Year- 2024
- Loan Amount? -₹50 thousand to ₹50 lakh
- Mandatory Minimum Age Limit? -18 years
- Project Subsidy- 15% to 35%
- Minimum Educational Qualification?- 8th pass only
- Official Website- www.kviconline.gov.in
PMEGP Loan Yojana 2024
Pradhan Mantri Employment Generation Programme, is an initiative launched by the Government of India to assist aspiring entrepreneurs to start their own business. Under this scheme, individuals can avail loans ranging from Rs 20 lakh to Rs 50 lakh at low-interest rates by both online and offline application processes.
The scheme aims to empower individuals across the country to become self-reliant and contribute to economic development. It provides an opportunity to aspiring entrepreneurs to realize their business dreams and create employment opportunities for others.
Eligibility for PMEGP Loan Yojana 2024
- To apply for PMEGP Loan Yojana 2024, some important eligibility criteria must be met:
- You must be having at least 18 years of age.
- The minimum educational qualification required is to pass 8th standard.
- You must have your Aadhaar card.
- Existing units or those who have already benefited from any government subsidy scheme are not eligible.
- All welfare new event agencies can process applications in both rural and urban areas through KVIC, KVIB, DIC Tax Board.
- Applicants must give consent to authenticate population information such as Aadhaar number, name, gender, date of birth and mobile number from UIDAI server.
Documents required for PMEGP Loan Scheme 2024
To apply for PMEGP Loan Scheme 2024, you will need the following documents:
- Aadhaar Card
- PAN Card
- Proof of Address
- 8th Class Pass Certificate
- Additional documents requested by the bank or loan institution
- Certificate of training from Entrepreneurship Development Programme
- Mobile number and email ID
- Passport size photo
Benefits of PMEGP Loan Scheme 2024
The government launched PMEGP Loan Scheme 2024 with a liberal approach to economically empower educated unemployed youth. It has many benefits such as:
Through the PMEGP loan scheme, educated unemployed persons can get a loan of up to Rs 50 lakh to start their own business.
Using the PMEGP loan scheme, individuals can enhance their financial status, not only promoting personal independence but also benefiting others in their community.
PMEGP Loan Scheme provides unemployed youth with an opportunity to pave the way for a brighter future by making a positive contribution to the prosperity and development of the country.
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Subsidy Amount of PMEGP Loan Yojana 2024
Applicants who opt for subsidy under PMEGP Loan Yojana 2024 can benefit greatly. The government provides substantial subsidy of up to 35% for rural areas and 25% for urban areas. This financial assistance aims to empower individuals in various fields by promoting economic growth and development.
By providing subsidies, the government encourages entrepreneurship and self-employment, especially in rural communities where economic opportunities may be limited. This initiative not only helps individuals realize their business aspirations but also contributes to the overall welfare and prosperity of both rural and urban areas.
How to Apply for PMEGP Loan Scheme 2024?
To apply online for PMEGP loan 2024, follow these steps:
- First of all visit the official website (www.kviconline.gov.in).
- Look for the “Application For New Unit” option and click on it.
- Carefully fill in the form shown.
- Submit the form and keep the registration number and password safe, which you will receive.
- Return to the homepage after successful registration.
- Click on “RegisteredApplicant”.
- Fill in all the required information to log in to the portal.
- Once logged in, carefully fill in the given application form.
- Scan and upload all the required documents.
- Finally, submit the application and print the receipt for your records.
By following these steps, you can easily apply for PMEGP Loan Yojana online and avail it.
PMEGP Loan Yojana 2024 Interest Rate
Apart from the loan amount, the government also provides a subsidy known as margin money ranging from 15% to 30%. This subsidy helps entrepreneurs cover a portion of their project cost. The remaining 60% to 75% is provided by the bank in the form of term loans and working capital, which can be in the form of cash credit or a composite loan covering capital expenditure and working capital.
Interest rates for PMEGP Loan Yojana 2024 generally range from 11% to 12%, providing affordable financing options for aspiring business owners. This comprehensive support system aims to facilitate the growth and success of new enterprises across all sectors.
PMEGP Loan Yojana 2024 Bank List
Here is the list of main banks that provide financial assistance for PMEGP Loan Yojana 2024:
- IDFC First Bank
- Bank of Baroda
- Indian Bank
- Bank of India
- Kotak Mahindra Bank
- Canara Bank
- Punjab National Bank
- Central Bank of India
- State Bank of India
- HDFC Bank Ltd.
- UCO Bank
- ICICI Bank Ltd.
- Union Bank of India
- Axis Bank
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PMEGP has four main objectives:
- To provide business loans for starting new business or projects to generate employment in both rural and urban areas
- To provide permanent employment to prevent people living in villages from migrating to cities in search of employment.
- This is especially for traditional artisans, aspiring artisans and rural-urban unemployed youth who remain unemployed for the rest of the year after doing traditional or seasonal work
- To focus on increasing the earning capacity of artisans, increasing the growth rate of rural and urban employment.
Potential Projects under PMEGP Scheme
- Agro Based Food Processing
- Cement & Allied Products
- Chemicals/ Polymers & Minerals
- Cold Storage & Cold Chain Solutions
- Dairy & Milk Products
- Electronic & Electrical Equipment
- Food Processing Industry
- Forest Industry
- Horticulture- Organic Farming
- Paper & Allied Products
- Plastics & Related Services
- Service Sector Industry
- Small Business Models
- Textiles & Apparels
- Waste Management
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Financial Assistance under PMEGP
This scheme provides financial assistance to people based on various parameters. As, the scheme includes micro, small and medium enterprises (MSMEs), certain conditions have been set regarding the number of eligible projects and the amount of loan offered.
General category applicants have to contribute 10% and special category applicants like SC/ST/OBC, Minorities, Women, Ex-Defence Personnel, Physically Handicapped Persons and applicants from North-East region, Hills and Border areas have to contribute 5%.
The subsidy rate in urban areas will be 15% for General category and 25% in rural areas. For special category people, the subsidy rate will be 25% for urban areas and 35% for rural areas.
FAQs (PMEGP Loan Scheme 2024)
Q.Do you need collateral for PMEGP loan?
Collateral requirements for PMEGP loans vary. If the project cost is less than ₹10 lakh, no collateral is required. However, for projects above ₹5 lakh and up to ₹25 lakh, CGTMSE provides collateral guarantee as part of the PMEGP scheme.
Q. Who is eligible to apply for PMEGP loan?
Any person who has completed class VIII can apply for PMEGP loan. Apart from this, self-help groups, charitable trusts, societies registered under the Societies Registration Act, 1860 and production cooperatives are also eligible to apply for loans under this scheme.
Q. What is the maximum project cost provided under PMEGP?
Answer: Under this scheme, loan up to Rs. 50 lakh is provided for a manufacturing unit project and Rs. 20 lakh for a service unit project.
Q. Is there a need to submit collateral/security to avail loan under PMEGP?
Answer: No, there is no need to provide collateral or security for projects costing up to Rs. 10 lakh under PMEGP scheme. Under PMEGP scheme, CGTMSE provides collateral guarantee for projects costing Rs. 5 lakh to Rs. 50 lakh.
Q. Which businesses are covered under PMEGP?
Answer: To check the project list of businesses covered under PMEGP, you can visit the below link: https://www.kviconline.gov.in/pmegp/pmegpweb/docs/jsp/newprojectReports.jsp
Q. What is PMEGP subsidy?
Answer: Pradhan Mantri Employment Generation Programme (PMEGP) subsidy is a credit-linked subsidy provided by the Government of India in which the beneficiary is provided subsidy up to 15%-35% on the total project cost. This subsidy can be availed majorly by individuals and MSMEs across the country.
Q. How much margin money (government subsidy) can be sanctioned?
Answer: Margin money is the same as government subsidy which is 15%-35% of the total project cost.
Q. Who can avail loan under PMEGP scheme?
- Answer: The following entities can avail loan under PMEGP scheme:
- Self Help Groups (SHGs)
- Charitable Trusts
- Societies registered under the Societies Registration Act, 1860
- Production Co-operative Societies
Q. If I am 28 years old and 10th pass, can I apply for loan under PMEGP?
Ans: Yes, applicants who are 18 years and above and have passed Class VIII can apply for a loan under the PMEGP scheme. There is no upper age limit, although banks may use their own eligibility criteria to determine the upper age limit.
Q. How long does it take to get a PMEGP loan amount?
Ans: After completion of a training program of about 16 days, banks/loan institutions can disburse the loan amount under PMEGP in about 2 months.
Q. Can I get a PMEGP loan for a fast food restaurant business?
Ans: Yes, you can get a loan under the PMEGP scheme to start a fast-food restaurant. You can also avail PMEGP subsidy of up to 90% of the total project cost offered by the Government of India if you meet the eligibility criteria to avail the loan. The PMEGP subsidy will range from 15%-35% depending on the loan amount.
Q. Is it necessary to have a specific degree to avail a PMEGP loan?
Ans: If the applicant wants to avail a loan for a service unit costing up to Rs. 10 lakh and a manufacturing unit costing up to Rs. 25 lakh, then the applicant must be at least 8th pass.
Q. Can a person living in an urban area avail a PMEGP loan?
Ans: Yes, this loan scheme is available to all eligible applicants, irrespective of where they live. However, there are certain restrictions on how much subsidy can be availed. For example, the subsidy for the general category in urban areas is 15%, while it is 25% in rural areas. For weaker sections, it is 25 percent in urban areas and 35 percent in rural areas.
Q. What is margin money under PMEGP loan? How does it benefit me?
Ans: Margin money is a subsidy from the Khadi and Village Industries Commission (KVIC). This margin money is given to the bank and has a lock-in period of up to 3 years.
Q. Will the bank provide me margin money?
Answer: Yes, the bank provides you margin money after the lock-in period, provided you have utilized your funds as per the guidelines provided by the bank.
Q. Are there any guidelines on the utilization of the loan amount?
Answer: The PMEGP loan requires that the working capital expenditure should be equal to the cash credit limit at least once in 3 years after the margin money is locked. Also, it should not be less than 75% of the utilization of the sanctioned limit.
Q. I do not have any working capital expenditure. Can I get a PMEGP loan?
Answer: Yes, you can avail this loan. For this, the breakup of your expenses should be approved by the controller of the regional office or bank branch, which should not include working capital expenditure.
Conclusion
In this article, we have provided complete information about PMEGP Loan Yojana 2024. If you are interested in applying for this loan, you can easily do so by following the steps mentioned here. If you find this article useful, then do share this article with your friends. Apart from this, if you have any questions about PMEGP Loan Scheme 2024, feel free to ask in the comment box below.
