PMEGP / Khadi / kvic Loan Online Apply kviconline.gov.in/pmegp (Prime Minister’s Employment Generation)

The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme launched by the Indian Government in 2008. The scheme is aimed at promoting self-employment and entrepreneurship among the youth of the country, particularly in rural areas. The Khadi and Village Industries Commission (KVIC) is the nodal agency for the implementation of this scheme.

The PMEGP scheme provides financial assistance to individuals and entities for setting up new micro-enterprises or expanding existing ones. The scheme offers financial support to a wide range of activities, including manufacturing, service, and business enterprises. The primary objective of the scheme is to generate employment opportunities and promote sustainable economic growth in the country.

Eligibility Criteria for PMEGP Loan

The PMEGP loan is available to all eligible Indian citizens who fulfill the following criteria:

The applicant must be above the age of 18 years.
The applicant must have completed at least 8th standard education.
The applicant should not be a defaulter of any bank or financial institution.
The applicant must have a feasible project report, and the project should be related to manufacturing or service sectors.
The applicant must have a permanent residence in the project area for the last three years.
The applicant must not have availed of any other government subsidy or benefit for the same project.

Documents Required for PMEGP Loan

The following documents are required for applying for the PMEGP loan:

Identity proof (Aadhar Card, Voter ID, Passport, etc.)
Address proof (Electricity bill, Telephone bill, etc.)
Educational qualification certificates
Proof of ownership of land and building (if applicable)
Project report
Caste certificate (if applicable)
Bank account statement for the last six months

Application Process for PMEGP Loan

The PMEGP loan application process is as follows:

The applicant must visit the PMEGP website (https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp) and register themselves.
After registration, the applicant can log in and fill in the online application form with all the necessary details.
The applicant must submit the application online and take a printout of the same.
The applicant must then submit the printout of the application form along with the required documents to the nearest KVIC office.
The KVIC office will scrutinize the application and conduct a field visit to verify the details provided in the application.
The District Level Task Force Committee (DLTFC) will then evaluate the project and recommend the same for approval or rejection.
Once the project is approved, the loan amount will be disbursed to the applicant’s bank account through the respective bank.

 

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Loan Amount and Subsidy under PMEGP

The loan amount and subsidy under PMEGP are as follows:

The maximum loan amount for manufacturing units is Rs. 25 lakhs, and for service sector units, it is Rs. 10 lakhs.
The subsidy under the scheme is available to the tune of 15% of the project cost in urban areas and 25% in rural areas.
For general category beneficiaries, the subsidy is 15% in urban areas and 25% in rural areas.
For SC/ST/OBC/Women/Ex-servicemen/PH beneficiaries, the subsidy is 25% in urban areas and 35% in rural areas.

Repayment of PMEGP Loan

The PMEGP loan has to be repaid within 3-7 years, depending on the loan amount and the repayment capacity of the applicant. The repayment period includes a moratorium period of 6-18 months, during which the applicant is not required to make any repayments. The repayment of the loan is done in monthly, quarterly, half-yearly, or yearly installments as per the repayment schedule provided by the bank.

Benefits of PMEGP Loan

The PMEGP loan has several benefits for the applicants, some of which are as follows:

Financial Assistance: The PMEGP loan provides financial assistance to the applicants for setting up new micro-enterprises or expanding existing ones.

Subsidy: The PMEGP loan also provides a subsidy of up to 35% of the project cost, which makes the loan affordable and accessible to all.

Employment Generation: The PMEGP loan helps in generating employment opportunities in the country, particularly in rural areas, which helps in promoting sustainable economic growth.

Skill Development: The PMEGP loan also helps in promoting skill development among the youth of the country, which is essential for promoting entrepreneurship and self-employment.

Women Empowerment: The PMEGP loan also has a special provision for women entrepreneurs, which helps in promoting women empowerment and gender equality in the country.

Infrastructure Development: The PMEGP loan also helps in promoting the development of infrastructure in the country, which is essential for promoting economic growth and development.

Technology Upgradation: The PMEGP loan also helps in promoting technology upgradation in the country, which is essential for promoting innovation and competitiveness in the market.

PMEGP provides financial assistance to the extent of 90% of the project cost for general category beneficiaries and 95% for SC/ST/OBC/women and other eligible categories. Although the program offers many benefits, there are several challenges in availing the PMEGP loan. In this article, we will discuss some of the challenges that entrepreneurs face while availing of the PMEGP loan.

Challenges in Availing PMEGP Loan

Eligibility Criteria
One of the major challenges that entrepreneurs face while availing of the PMEGP loan is meeting the eligibility criteria. The eligibility criteria for PMEGP are as follows:

a) The age of the applicant should be above 18 years.
b) The applicant should have passed at least 8th standard.
c) The project should be in the manufacturing or service sector.
d) The cost of the project should not exceed Rs. 25 lakhs in the manufacturing sector and Rs. 10 lakhs in the service sector.
e) The applicant should not have availed of any other subsidy or financial assistance for the same project.

Meeting all these eligibility criteria is a significant challenge for many entrepreneurs, especially those who are from economically weaker sections of society.

Availability of Funds
Another significant challenge that entrepreneurs face while availing of the PMEGP loan is the availability of funds. Although the government has allocated a substantial amount of funds for the program, the demand for funds is much higher than the availability. Due to this, many deserving entrepreneurs do not get financial assistance under the program, which affects their business plans and aspirations.

Documentation Process
The documentation process for availing of the PMEGP loan is quite extensive and time-consuming. The applicant needs to submit various documents such as identity proof, address proof, project report, bank account details, and others. The documentation process also requires the applicant to visit various government offices, which is a time-consuming and tedious process.

Delay in Loan Disbursement
Many entrepreneurs face delays in the disbursement of the PMEGP loan. The delay is mainly due to the extensive documentation process and the time taken by the government officials to process the loan application. The delay in loan disbursement affects the business plans of the entrepreneurs and may even lead to the closure of the business.

Lack of Awareness
Many eligible entrepreneurs are not aware of the PMEGP loan scheme, which is a significant challenge in availing of the loan. Lack of awareness about the program and its benefits leads to a lack of interest in the program among the eligible entrepreneurs, and they do not apply for the loan.

Collateral Requirement
One of the eligibility criteria for availing of the PMEGP loan is that the applicant should provide collateral security for the loan amount. This is a significant challenge for many entrepreneurs, especially those who do not have any assets to pledge as collateral. The collateral requirement may discourage many eligible entrepreneurs from availing of the loan.

Stringent Approval Process
The approval process for the PMEGP loan is quite stringent, and many loan applications get rejected due to non-compliance with the eligibility criteria. The strict approval process may discourage many eligible entrepreneurs from applying for the loan.

Conclusion

The PMEGP loan scheme is an excellent initiative by the Government of India to promote entrepreneurship and generate employment opportunities in the country. However, there are several challenges that entrepreneurs face while availing of the loan.

Direct link to the online application is http://www.kviconline.gov.in/pmegp/pmegponlineapp/pmegponline.jsp

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