PMEGP - MSME Loan / SME Loan Government Schemes | SBI - Business

Scheme : PRIME MINISTER EMPLOYMENT GENERATION PROGRAMME(PMEGP)

• Implementing Agency : Khadi and Village Industries Commission (KVIC)
• Portal : Online (PMEGP e- portal) www.kviconline.gov.in
• Target Group : 
  • Any individual, above 18 years of age.
  • There will be no income ceiling for assistance for setting up projects under PMEGP
  • For setting up of project costing above Rs. 10 lakh in the manufacturing sector and above Rs. 5 lakh in the Business/ Service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
  • Assistance under the scheme is available only for new projects sanctioned specially under the PMEGP.
  • Existing units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.
  • Projects without Capital expenditure are not eligible for Financing under the scheme.
  • Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or rental workshed/workshop to be included in the project cost calculated for a maximum period of 3 years only.
  • PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities prohibited by local Government/ Authorities keeping in view environment or socio-economic factors and activities indicated in the negative list of the guidelines.
  Trading activities
  • Business / trading activities in the form of sales outlets may be permitted in NER, (LWE)-affected districts and A&N Islands.
  • Retails outlets/business selling Khadi Products, Village Industry projects procured from Khadi and Village Industry Institutions certified by KVIC and products manufactured by PMEGP/SFURTI units only may be permitted under PMEGP (across the country)
  • Retail outlets backed by manufacturing (including processing)/service facilities may be permitted (across the country)
  • The maximum cost of the project for business / trading activities as above (a) and (b) may be Rs.20 lakh (at par with the maximum project cost for service sector)
  • Maximum 10% of the financial allocation in a year in a state may be used for business / trading activities as above (a), (b) and (c)
  1. Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The ‘family’ includes self and spouse. Enhanced due diligence of the borrower to be ensured in cases where a family member other than the spouse engages in the same line of activity, more so if it involves trading activity. The identified beneficiaries must be subject to enhanced due diligence to ensure that genuine applicants are granted loans.
• Loan Quantum : The maximum cost of the project/unit admissible under manufacturing sector is Rs. 50 lacs. The maximum cost of the project/unit admissible under business/service sector is Rs. 20 lacs. (For upgradation of project under manufacturing Sector is Rs.1.00 crores).
• Margin : General Category 10% (Special Category-5%-SC/ST/OBC etc.)
• Repayment : 3 to 7 years
• ROI : 3.25+EBLR (Presently 12.40%) wef 15.02.2023
• Int Subvention : The subsidy ranging from 15 to 35% of project cost provided by Government of India through Khadi and Village Industries Boards (KVIC).
• Credit Guarantee : CGFMU (Up to Rs.10 Lac)/ CGTMSE (above Rs. 10 Lac)