If you want to do your business, you need capital to do business. Therefore, if you are looking for any government scheme for your business, which can be beneficial for you, then you can benefit from the Prime Minister's Employment Generation Program (PMEGP) scheme.

What is the PMEGP scheme?

Prime Minister's Employment Generation Program (PMEGP) is a credit-linked subsidy scheme launched by the Ministry of Micro, Small and Medium Enterprises (Ministry of MSME) to generate employment opportunities in both rural and urban areas. Under this scheme, the government provides loans ranging from Rs 20 lakh to Rs 50 lakh to micro and small enterprises, which includes a subsidy of 15-35%.

Candidates interested in PMEGP scheme can apply online loan through https://www.kviconline.gov.in/ or the UdyamSarathi App. Choosing a business option and getting project reports as well as all market-related information can be obtained through the website or app.

PMEGP scheme can provide employment opportunities to unemployed youth across the country from the Central Government. Under this scheme, you can take a loan ranging from Rs 10 to Rs 25 lakh. For this, the youth will have to follow these rules.

Benefits of the PMEGP Scheme

  • Loan from Rs 20 lakh to Rs 50 lakh
  • Subsidy of 15-35%
  • Loan for a minimum tenure of 5 years
  • Low interest rates and no guarantee are required

Eligibility for PMEGP Scheme

  • The age of the applicant should be more than 18 years.
  • The applicant must be a citizen of India.
  • The applicant should have an 8th pass as an educational qualification.
  • The applicant must have a contribution of a minimum of 5% of the loan amount.
  • Candidates who have taken training from any government institution will be given a first chance.

How to apply for the PMEGP scheme?

To apply for PMEGP Scheme, the applicant must submit these documents:

  • Aadhar card
  • PAN card
  • Voter ID
  • passport size photo
  • Address proof
  • Educational certificate
  • Business plan

The application form is available on the website of the MSME Ministry or in banks. After filling out the application form, it has to be submitted to the concerned bank along with the necessary documents. Step-by-step process to avail loan under PMEGP scheme

  • Fill out the application form available on the website of MSME Ministry or in banks.
  • Attach all necessary documents.
  • Submit the application form to the concerned bank.
  • The bank will examine the application and decide whether to accept or reject it.
  • For approved applications, the bank will release the loan amount.

Loan withdrawal under the PMEGP scheme

The repayment period of the loan under the PMEGP scheme is 5 years. Annual instalments can be paid monthly, quarterly or half-yearly. PMEGP scheme is a great opportunity, which can help the youth to start their own business. This scheme is an important initiative from the government, which is helping to increase employment opportunities in the country.

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