PMEGP Loan Process Time

If you are interested in applying for a PMEGP (Prime Minister Employment Generation Programme) Loan, you may be wondering about the loan processing time. The PMEGP Subsidy Loan Scheme is a government program in India that offers credit with a linked subsidy. The loan allows beneficiaries to access loans of up to Rs. 25 lakh, with a subsidy of 15 to 35% as margin money. The subsidy amount provided depends on the total project cost, and the loan from the bank covers 60 to 75% of the cost, while the rest is to be arranged by the entrepreneur.




The loan application process takes around two months to complete due to several formalities required by the government schemes, which offer more benefits but take longer. A good credit score and timely document submission can help to speed up the process. If the bank does not find you eligible for the loan, they may reject your application within 15 days.

The PMEGP loan can be used for a business or service and can be availed up to Rs. 10 lakh. For a manufacturing unit, up to Rs. 25 lakh is available from the bank. The repayment period is agreed upon between the borrower and the bank and is typically between 3 to 7 years.

The interest rate for a PMEGP loan is approximately 11 to 12%, but this can vary between banks. To apply for a PMEGP loan, you need to plan in advance the business type, expenses and investment required, and then discuss your plan with PMEGP officials and the bank manager, who will decide whether to sanction your loan.

To apply for a PMEGP loan, you must submit all necessary documents, including your identification, PMEGP project report, address proof, and EDP (Entrepreneurship Development Program) training certificate. You can apply for the loan online through the KVIC (Khadi and Village Industries Commission) department's e-portal.

The aim of the PMEGP loan project is to generate employment opportunities for unemployed youth in rural and urban areas, preventing them from moving to other places for employment. The project also provides a common ground for scattered artisans and unemployed candidates to come together and receive self-employment benefits. The interest rates for PMEGP loans vary between banks, and the subsidy provided to applicants depends on several factors, including creditworthiness, repaying capacity, financial stability, business plan, and project cost.

Talk with experts: +91 8780129893

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