PMEGP Loan 2024: The central government regularly introduces various programs to benefit its citizens. One of its ongoing efforts is to tackle unemployment and encourage self-employment.
Recently, the government has launched an important program to provide financial support for job creation. The PMEGP Loan Scheme 2024 aims to offer loans for self-employment ventures, small businesses, Start-ups and projects. This scheme will be managed through state Khadi and Village Industries Commissions, district industry centers, and state food and village industries boards.
PMEGP Loan 2024
| Program Name | Pradhan Mantri Employment Generation Program (PMEGP) |
| Found Year | August 2008 |
| Objective | Provide Financial Assistance to the Small Startups |
| Total Fund to Borrow | Rs. 50 Lakh |
| Official Website | kviconline.gov.in/pmegpeportal |
Benefits and Features
- Increased Employment Opportunities: The scheme aims to create ample job opportunities in both rural and urban areas.
- Reduction in Rural Migration: By providing support to rural areas, the program helps prevent migration to cities, allowing residents to stay connected with their traditional livelihoods.
- Low-Interest, Subsidized Loans: Under the PMEGP Loan 2024, individuals can access loans at low interest rates and with subsidies, enabling them to start micro-enterprises.
- Avoidance of Exploitative Lending: The program provides loans in the micro sector, helping rural people avoid borrowing from moneylenders and middlemen.
- Enhanced Employment Opportunities: It offers better job opportunities, contributing to overall economic development.
- Minimal Documentation: Citizens can benefit from the scheme with minimal paperwork and eligibility requirements, making it accessible to a wide range of applicants.
Objective of Pradhan Mantri Employee Generation Program 2024
- Encouragement for Self-Employment: The program aims to encourage citizens to start new self-employment initiatives, micro-industries, and other enterprises.
- Subsidized Loans: It provides loans at easy, subsidized rates to help individuals start their own businesses and create job opportunities for others.
- Support for Traditional Businesses: The program also assists those involved in traditional businesses that are no longer performing well, helping them to revitalize their operations.
- Employment in Rural Areas: It focuses on creating job opportunities for rural and unemployed youth, helping to reduce migration to urban areas.
- Skill Development: The program seeks to provide skill training to artisans to enhance their earning potential and improve their livelihoods.
Loan amount
Under the Pradhan Mantri Employment Generation Program, applicants can obtain a loan of up to ₹50 lakhs. However, the maximum loan amount is capped at ₹20 lakhs for business or service sectors.
Additionally, beneficiaries are required to contribute a certain percentage of the project cost from their own funds:
- For General Category Beneficiaries: 10% of the project cost.
- For Special Category Beneficiaries: 5% of the project cost.
The remaining 90% to 95% of the project cost is covered by the bank.
Subsidy amount
- For General Category Beneficiaries:
- Urban Areas: Beneficiaries need to cover 15% of the project cost from their own funds.
- Rural Areas: Beneficiaries need to cover 10% of the project cost from their own funds, with the remaining 90% subsidized.
- For Special Category Beneficiaries:
- Urban Areas: Beneficiaries need to contribute 5% of the project cost from their own funds.
- Rural Areas: Beneficiaries need to cover 5% of the project cost, with a 35% subsidy available.
Required Documents
- Caste Certificate (if applicable)
- Category Certificate (if applicable)
- Proof of Residence
- Aadhaar Card
- Detailed Project Report related to the proposed project
- Educational Certificates
Interest Rate
Under the Pradhan Mantri Employment Generation Program, applicants need to pay an interest rate between 11% and 12% on their loans. The repayment period for these loans is set between 3 to 7 years.
How to Apply?
- Choose a Bank: PMEGP loans are available through various authorized banks. Check with your local bank or visit the official PMEGP website to find a list of participating banks.
- Visit the Bank: Go to the branch of your chosen bank and submit your completed application form along with the required documents.
- Bank Processing: The bank will review your application, verify your eligibility, and process your loan request.
- Attend Entrepreneurship Development Program (EDP): As part of the PMEGP loan process, attending an EDP is mandatory for all beneficiaries.
- Loan Sanction and Disbursement: Once your loan is approved, the bank will disburse the funds into your account.
Important Links
| Official Website | Click here |
| Visit Homepage | Click here |