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Bank finance under PMEGP scheme

Bank finance under PMEGP scheme


(This article clarifies  on   who is  eligible ( the age, limit, qualification) including quantum of subsidy, bank loan and  money to be bought up by the entrepreneur to start up a business  for bank finance under PMEGP scheme.)

Online submission of applications for loans under PMEGP is mandatory and no manual applications are allowed w.e.f. 01.05.2016.The latest update on how to submit PMEGP loan application online is provided at following URL

Click: How to submit PMEGP loan application online?

PMEGP stands acronym for Prime Minister’s Employment Generation Programme which is a subsidy loan scheme launched on 15th August 2008 by the government of India. The earlier two schemes, namely, Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) were merged with the new scheme. Under Prime Minister’s Employment Generation Programme, money to be brought by the new entrepreneur to start up a business is just 5-10% of project cost and rest will be taken care by  the margin and the bank loan. It is anticipated  that the programme would successfully create more employment opportunities both in cities and rural areas in the years to come. Since inception,  PMEGP scheme attracted  a lot of people to start up a new business and there are doubts from all the corners to know more about the scheme.   The frequently asked questions on the schemes  are answered hereunder.

Who is eligible under PMEGP loan scheme?

The PMEGP subsidy loan scheme is available for the new entrepreneur. All adults of any age (above 18 years) are eligible for PMEGP loan as there is no upper limit of age to become eligible for PMEGP loan. The maximum cost of the project  or a unit should not be over Rs.25 Lakh under manufacturing sector and  Rs.10 Lakh under business and service sector.

Self Help Groups including those belonging to BPL provided that they have not availed benefits under any other Scheme are eligible for assistance under PMEGP. Institutions registered under Societies Registration Act, 1860, Production Cooperative Societies, and Charitable Trusts are also eligible under PMEGP loan scheme.

What is the minimum educational qualification required for the loan scheme?

For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business or service sector, the beneficiaries should possess at least VIII standard pass educational qualification.

Is there any income ceiling to become eligible for subsidy under PMEGP loans?

There will be no income ceiling for assistance for setting up projects under PMEGP

How much finance a borrower is getting from the bank?

 The amount of Bank Credit will be the total cost of the project less owner’s contribution.  For borrowers belonging to general category  owner’s contribution will be 10%and  for special category borrowers 5%. Banks sanction  90% of the project cost in case of general Category of beneficiaries/institutions and 95% in case of the special category of beneficiary/institutions (SC/ST/OBC/Minority/ex-servicemen/Physically handicapped/North East Region/Hill & Border area) for setting up of the project.  In actual terms, the amount of bank credit will be ranging between 60-75% of the project cost as they receive 15-35% of margin money and 5% to 10% from owner’s contribution to the project. In the matter of accepting credit proposal and sanctioning the limit, banks take their own credit decision on applications received from PMEGP borrowers, which will be on the basis of the viability of each project.

When will the bank  release the loan?

The lending bank need not wait for receipt of the subsidy for the disbursement of the loan. Once the limit is sanctioned, the bank would inform the State/Regional Office of the KVIC/KVIBs/State DICs, as the case may be, for arranging EDP training to the borrower. The first installment of the loan will be released to the borrower only after he/she completes EDP training of at least 2 weeks arranged by KVIC/KVIBs/State DICs. However, the applicants who have already undergone EDP training for at least 2 weeks and having the certificate for the same from a recognized institution are exempted from further EDP training. After successful completion of the training, the prospective borrower has to deposit his/her share of contribution to the project (Owner’s contribution) with the bank. The part or full amount of loan as the case may be released  by the bank after the borrower deposits the money with the bank towards owner’s contribution.

Whether subsidy is available for working capital finance?

Yes. However, the borrower is eligible for full subsidy provided utilization of funds in such a way that should utilize 75% of sanctioned limit and that the borrower at least one point of the stage the outstanding in Cash Credit account should touch 100% of limit within three years of lock-in period of Margin Money. If the utility of funds from CC account  does not touch the sanctioned limit, the proportionate amount of the Margin Money (subsidy) is to be recovered by the Bank/Financial Institution and refunded to the KVIC at the end of the year.

What is the quantum subsidy available to PMEGP beneficiaries?

The beneficiaries from general category are eligible for 15% subsidy in the urban areas and 25% in rural areas. Whereas the beneficiaries from Special (including SC/ST/OBC /Minorities/ Women, Ex-Servicemen, Physically handicapped, NER, Hill and Border areas etc) are eligible for  25% subsidy in the urban area and 35% in rural area.

How the subsidy amount is claimed?

After the release of loan partly or fully, the bank branch would claim SUBSIDY amount in the prescribed format from designated Nodal branch. The nodal branch where KVIC places lump sum deposit of subsidy amount (Margin Money) in the Savings Bank account maintained for the purpose, releases the subsidy amount to the claimant branch. Though the margin money (subsidy) will be released by the designated Nodal Branch of the Bank, KVIC/State DIC is the final authority to either accept the project/claim or reject, based on the parameters of the Scheme.

When the subsidy amount will be credited to borrower’s loan account?

The Margin Money (subsidy/grant) received by the lending bank branch will be kept in the Term Deposit Receipt (or any other similar type of account maintained by the bank for the purpose) of three years at branch level in the name of the beneficiary/Institution. No interest will be paid on the TDR and no interest will be charged on the loan to the corresponding amount of TDR. The subsidy (Grant) amount will be credited to the Borrowers loan account after three years from the date of  release of  loan first time to the borrower/institution by the bank. In case the Bank’s advance goes “bad” before the completion of three year period, the Margin Money (subsidy), bank may adjust the subsidy amount to the loan liability of the borrower either in part or full and intiate recovery process of entire dues against the borrower.

Whether the borrower is eligible for enhancement of subsidy amount if the credit limit is later on enhanced by the bank?

No. The subsidy will be a onetime assistance from Government. As such, no further subsidy will be available for enhancement of credit limit, or expansion/modernization of the project

Whether the existing units are eligible for PMEGP scheme?

No.Margin money or subsidy is available only to a new project sanctioned specially under PMEGP. Existing units are not eligible under the scheme. Project financed jointly by bank and other financial institutions are not eligible for subsidy assistance. 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’ are not eligible under the scheme. Banks take an undertaking from the borrower who is availing loan under PMEGP that in the event of objection in writing by KVIC/KVIB/DIC the beneficiary would return the margin money.

What is the process of loan once the applicant submits his/her application for loan?

The task force consisting of representatives from KVIC, KVIB, DIC and Banks take the responsibility of identifying the borrowers. The projected would be appraised by banks both on technical and economic viability aspects of the unit. The task force clears the application after the application fulfills the criteria of Industry, per capita investment, rural area, negative list so as to avoid approval of loans in banks. Before releasing the loan bank will inform the KVIC, DIC, KVIB etc., as the case may be for arranging EDP training to the beneficiary, if he/she has not undergone such training.   The loan applicants who have already undergone training at least for 2 weeks under entrepreneurship Development Programme (EDP)/skill development programme (SDP)/ Entrepreneurship cum skill development programme (ESDP) or vocational training (VT) are allowed to submit application directly to banks. However banks would refer the applications received by them to task force for its consideration.

What type of security to be offered to the bank?

Banks do not insist for collateral security for projects involving loan up to Rs.5 lakh, which is cleared by task force, in line with the guidelines of RBI. Beyond Rs.5 lakh, security norms of individual banks applicable.

Who are the implementing Agencies of PMEGP?

Khadi and Village Industries Commission, Mumbai (KVIC) is the single nodal agency for implementing the scheme. At state level scheme is implemented through State Directorates of KVIC, State Khadi and Village Industries Boards (KVIBs) and District Industries Centers (DICs).  The other  implementing agencies are banks and financial Institutions, KVI federation, professional institutions, technical colleges, training centers of KVIC/KVIBs, NSIC offices, NIESBUD, NIMSME, Udyami Mitras etc.

Financial Institutions includes 27 Public Sector Banks, All regional rural banks, co-operative banks, private sector scheduled commercial banks approved by state level task force committee headed by Principal Secretary of Industries.

 

(92) Comments

  1. Pratik dodia

    Sir I have working job not working business And I want to start business so please suggest me I am eligible for business loan? Pratik 9722905995.

    1. Surendra NaikSurendra Naik - Post author

      The PMEGP subsidy loan scheme is available for the new entrepreneur. All adults of any age (above 18 years) are eligible for PMEGP loan as there is no upper limit of age to become eligible for PMEGP loan. The maximum cost of the project or a unit should not be over Rs.25 Lakh under manufacturing sector and Rs.10 Lakh under business and service sector. If you are adult (above 18 years), you are eligible for the loan under PMEGP subsidy scheme.

  2. RAJENDRA KESARKAR

    Respected sir, am start new business for trading we require 25 lacs amount to start our business. We have primary customer and secondary customer also but we don't have enough money to contribute our business.i request to you how can I Take PMEGP loan and how? Please Reply Regards

    1. Surendra NaikSurendra Naik - Post author

      The PMEGP subsidy loan scheme is available for the new entrepreneur. Existing units are not eligible under the scheme. If yours is a new enterprise, approach the bank manager or state DIC office for PMEGP loan.

  3. Prasad

    Hi sir gdmng, Am Prasad from vizag ,am planing to start fly ash bricks manufacturing 20 lakhs project cost so pls suggest me when we approaches SBI without account ? Right now I am planing to start the project in rural area bt am living in urban area so pls suggest me which area bankers to go and meet and how much time it will take

    1. Surendra NaikSurendra Naik - Post author

      If you start the unit at rural area you will get more subsidy under PMEGP scheme.Go and contact the bank which is nearer to your proposed unit and explain him about your project. The branch manager will guide further. Regards, Surendra Naik

  4. UmaMaheswaraRao

    My firm registration completed recently. Taking up contract from L&T which has to be done in various locations in AndhraPradesh. This is a Infra service work. Am I eligible? Project cost is Rs.20,00,000/- and I need Rs.5,00,000/- as initial investment.

    1. Surendra NaikSurendra Naik - Post author

      The PMEGP subsidy loan scheme is available for the new entrepreneur. Existing units are not eligible under the scheme.Therefore, you have to quickly approach the bank with orders in hand for finance under PMEGP.

    2. Surendra NaikSurendra Naik - Post author

      Individuals can now submit PMEGP online application to Khadi & Village Industries Commission.I have updated my article on 21.09.2017 in respect of how to submit online PMEGP loan application. You may go through it again. Click the folowing URL for online submission of application https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp

    1. Surendra NaikSurendra Naik - Post author

      I am not sure whether running a school is considered as service sector. You may contact DIC/KVIC for the clarification.Individuals can now submit PMEGP online application to Khadi & Village Industries Commission.I have updated my article on 21.09.2017 in respect of how to submit online PMEGP loan application. You may go through it again. Click the folowing URL for online submission of application https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp

  5. SILAMBARASAN

    Dear sir, I'm 24 years old and I have finished my gradute . I decided to start a new business that's my dream but i don't have that much money , so i need loan to start a business kindly help sir how get pmepg loan. And one of my colleague applied pmepg under kvic and he spend 1lakhs but still he will not get any loan and there is no response from that agent kvic

    1. Surendra NaikSurendra Naik - Post author

      Mr.Silambarasan don't approach middleman or broker for PMEGP loan. Individuals can now submit PMEGP online application to Khadi & Village Industries Commission.I have updated my article on 21.09.2017 in respect of how to submit online PMEGP loan application. You may go through it again. Click the folowing URL for online submission of application https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp

    1. Surendra NaikSurendra Naik - Post author

      Individuals can now submit PMEGP online application to Khadi & Village Industries Commission.I have updated my article on 21.09.2017 in respect of how to submit online PMEGP loan application. You may go through it again. Click the folowing URL for online submission of application https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp

    2. Surendra NaikSurendra Naik - Post author

      Individuals can now submit PMEGP online application to Khadi & Village Industries Commission.I have updated my article on 21.09.2017 in respect of how to submit online PMEGP loan application. You may go through it again. Click the folowing URL for online submission of application https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp

  6. rajiv arora

    hello sir g, sir g , i want to start my business , so i goes to indian overseas bank ,ambala cantt branch, but BM said what i have guarntee for this loan,plz suggest what i do

    1. Surendra NaikSurendra Naik - Post author

      As per RBI guidelines the project costing upto Rs.10.00 lakhs under PMEGP loans are free from collateral security. The CGTSME provided collateral guarantee for the project beyond Rs.5.00 lakhs and upto Rs.25.00 lakhs under PMEGP scheme.You may suggest the manager to sanction the loan with CGTSME guarantte. However, you will have to pay premium about for that. If any of your relative is ready to offer personal guarantee and collateral security for the same you may explore that possibility.

    2. Surendra NaikSurendra Naik - Post author

      Mr.Arora, Click the folowing URL for online submission of application https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp Within 48 hours or two working days of receipt of application, the nodal officer of KVIC, State KVIB and DIC shall interact with the applicant personally on telephone or personal meeting and confirm the receipt/ acceptance of the application for preliminary scrutiny. The nodal officer will do all the required correction in the application in consultation/cross checking with the applicant and also provide hand holding to the applicant at every stage. They will appraise the applications on same methodology as followed by Banks for approval of loan. Applications which do not conform to the scheme guidelines or which remain incomplete or irrelevant even-after consultation with the applicant will be rejected by the concerned Nodal Officer, recording reasons for rejection. Applicant can file grievance against such rejection to the State Director, KVIC.

  7. Ramkumar Prasad

    I have applied for Loan under PMEGP and the same is submitted online, what is the expected time to know the status of the application.

    1. Surendra NaikSurendra Naik - Post author

      Within 48 hours or two working days of receipt of application, the nodal officer of KVIC, State KVIB and DIC shall interact with the applicant personally on telephone or personal meeting and confirm the receipt/ acceptance of the application for preliminary scrutiny. The nodal officer will do all the required correction in the application in consultation/cross checking with the applicant and also provide hand holding to the applicant at every stage. They will appraise the applications on same methodology as followed by Banks for approval of loan. Applications which do not conform to the scheme guidelines or which remain incomplete or irrelevant even-after consultation with the applicant will be rejected by the concerned Nodal Officer, recording reasons for rejection. Applicant can file grievance against such rejection to the State Director, KVIC.

    1. Surendra NaikSurendra Naik - Post author

      Within 48 hours or two working days of receipt of application, the nodal officer of KVIC, State KVIB and DIC shall interact with the applicant personally on telephone or personal meeting and confirm the receipt/ acceptance of the application for preliminary scrutiny. The nodal officer will do all the required correction in the application in consultation/cross checking with the applicant and also provide hand holding to the applicant at every stage. They will appraise the applications on same methodology as followed by Banks for approval of loan. Applications which do not conform to the scheme guidelines or which remain incomplete or irrelevant even-after consultation with the applicant will be rejected by the concerned Nodal Officer, recording reasons for rejection. Applicant can file grievance against such rejection to the State Director, KVIC.

    1. Surendra NaikSurendra Naik - Post author

      Within 48 hours or two working days of receipt of application, the nodal officer of KVIC, State KVIB and DIC shall interact with the applicant personally on telephone or personal meeting and confirm the receipt/ acceptance of the application for preliminary scrutiny. The nodal officer will do all the required correction in the application in consultation/cross checking with the applicant and also provide hand holding to the applicant at every stage. They will appraise the applications on same methodology as followed by Banks for approval of loan. Applications which do not conform to the scheme guidelines or which remain incomplete or irrelevant even-after consultation with the applicant will be rejected by the concerned Nodal Officer, recording reasons for rejection. Applicant can file grievance against such rejection to the State Director, KVIC.

  8. Nitin Kumar

    Sar mene loan ke lai apply kai tha nastional finicec Company to vaha se call aaya insorun advan Bob. Back me se call aaviyo o loko paesa pehle dalne ko bol rhe he to a sach hoga ya galat

    1. Surendra NaikSurendra Naik - Post author

      Now online submission of applications for loans under PMEGP is mandatory and no manual applications are allowed w.e.f. 01.05.2016. So you need not approach any third parties for loan.Click below to know,How to submit PMEGP loan application online? https://www.bankingschool.co.in/loans-and-advances/5316/

  9. SUMIT SARANGI

    Sir what is the intrest rate and what is d time limit with in which I have to complete the loan money. And one more thing intrest rate will applyed on total money or after deduction subsidy.

    1. Surendra NaikSurendra Naik - Post author

      Interest rate is as applicable to micro and small enterprises. Individual banks have the power to decide their rate of interest.Repayment of loan depends upon terms of loan sanctioned to you.

    1. Surendra NaikSurendra Naik - Post author

      The amount of Bank Credit will be the total cost of the project less owner’s contribution. For borrowers belonging to general category owner’s contribution will be 10%and for special category borrowers 5%. Banks sanction 90% of the project cost in case of general Category of beneficiaries/institutions and 95% in case of the special category of beneficiary/institutions (SC/ST/OBC/Minority/ex-servicemen/Physically handicapped/North East Region/Hill & Border area) for setting up of the project. In actual terms, the amount of bank credit will be ranging between 60-75% of the project cost as they receive 15-35% of margin money and 5% to 10% from owner's contribution to the project. Thus,under Prime Minister’s Employment Generation Programme, money to be brought by the new entrepreneur to start up a business is just 5-10% of project cost and rest will be taken care by the margin and the bank loan.

    1. Surendra NaikSurendra Naik - Post author

      The amount of Bank Credit will be the total cost of the project less owner’s contribution. For borrowers belonging to general category owner’s contribution will be 10%and for special category borrowers 5%. Banks sanction 90% of the project cost in case of general Category of beneficiaries/institutions and 95% in case of the special category of beneficiary/institutions (SC/ST/OBC/Minority/ex-servicemen/Physically handicapped/North East Region/Hill & Border area) for setting up of the project. In actual terms, the amount of bank credit will be ranging between 60-75% of the project cost as they receive 15-35% of margin money and 5% to 10% from owner's contribution to the project. Thus,under Prime Minister’s Employment Generation Programme, money to be brought by the new entrepreneur to start up a business is just 5-10% of project cost and rest will be taken care by the margin and the bank loan.

  10. Sachin Kank

    I got message that your PMEGP loan has been pre approved. Can you let me know what is the next process to get fully approve this loan.

    1. Surendra NaikSurendra Naik - Post author

      Congratulations! The decision of the DLTFC will be conveyed on-line to the District Implementing Agencies (KVIC/KVIB/DIC) within 3 working days of the meeting electronically. The concerned Agency will within 48 hours of the receipt of decision of DLTFC forward the recommended application to the concerned Banks. This entire process has to be completed within 45 days of receipt of application on line.

  11. trivendra Kumar mehra

    Sir i am from tonk district of rajasthan i want to start business in jaipur district of rajasthan now can I take loan from jaipur

    1. Surendra NaikSurendra Naik - Post author

      You can take loan from a bank nearer to your proposed business unit. It will be easier to you if you are able to show your present communication address at Jaipur. This is because the bank in Tonk may not be inclined to lend to a business unit in Jaipur.

  12. Adnan husain

    Sir Im starting a new business of jackets want a loan of 25 lackh is it mandatiory that machinery cost should be 60% n my raw material cost should be 40% of total amount Please elaborate it specifically

    1. Surendra NaikSurendra Naik - Post author

      DLTFC appraises the loan applications on same methodology as followed by Banks for approval of loan. You can file grievance against such rejection to the State Director, KVIC.

      1. Navneet lakhani

        Hello sir, Sir meri case 20.7.2017 ko PMEGP scheme me pass ho gayi hai ,meri case bank me bhi aa gayi but bank manager aage ki koi procedure nahi bata rahe hai Har time ek nayi date de dete hai to ab aage kya kar sakte hai Thanks

        1. Surendra NaikSurendra Naik - Post author

          Lodge the complaint with the Regional Manager of the Bank. If no response comes within a reasonable time, escalate the complaint viz.GM of customer service division, Managing Director of the bank/banking ombudsman etc.

  13. ravindra chavan

    I am from aurangabad maharashtra. I had already applied the application but this application status is forwarded to bank. But when i reach at bank manager he told me your application is under process. He does not approval my project application. So what can i do sir????

    1. Surendra NaikSurendra Naik - Post author

      DLTFC appraises the loan applications on same methodology as followed by Banks for approval of loan. If the bank manager does not approve the DLTFC sanction, you can file grievance against such rejection to the State Director, KVIC.

        1. Surendra NaikSurendra Naik - Post author

          What was your grievance? If the DLTFC does not clear your application within 45 days, the Bank where you intend to borrow can appraise the projects on their own. In case of rejection, the reasons for rejection should be clearly conveyed to you. If DLTFC has rejected your loan application, you can go for an appeal with the Director of KVIC. If DLTFC has already sanctioned the loan and the branch is not releasing the loan, you need to complain to Regional Office/Head office of the bank.

          1. ravindra chavan

            I will also go in regional office of the bank but they also told me me that i had not enough fund to provide you and sanctioned your loan

          2. Surendra NaikSurendra Naik - Post author

            Please ask the bank to give it in writing the reason for refusing the loan. It is obligatory on the part of the bank to give it in writing if they reject any priority sector loan. If they don't have money to lend, how will they run the bank? Threaten them that you are going to complain to Ministry of Finance, Government of India/RBI/Banking Ombdusman if they do not release the loan.

  14. Ramraj Jangid

    Dear Sir, Greetings!! Sir, I want to start Craft paper bag manufacturing business but i don't know that for this business loan is available or not under PMEGP. Kindly guide me ASAP. Thank you in advance

    1. Surendra NaikSurendra Naik - Post author

      Greetings! You are eligible for loan if it is a start up business for you. To know the process of applying for loan, click the following link How to submit PMEGP loan application online? URL https://www.bankingschool.co.in/loans-and-advances/5316/

  15. Shubham Nalawade

    Sir mujhe ek family restaurant start karna hai iskeliye pmegp loan mil sakta hai kya aur vo kaunse sector Mai aata hai service ya manufacturing . Sir please guide me

    1. Surendra NaikSurendra Naik - Post author

      I'm not sure whether hotel industry comes under manufacturing sector or service sector. Generally, hotel industry treated as hospitality sector, where service tax (now GST) was applicable. Therefore, I presume it as a service sector.For setting up a small restaurant with nearly 80% of the capital expenditure being made towards interior and kitchen equipment. Therefore you need both term loan and working capital finance.Running a restaurant you need in and out experience.If you have experience in the line of business, prepare the project and submit online PMEGP application to KVIC.

  16. Adnan husain

    I face the interview in that I mentioned under my form that I require a loan of 25 lackh but they refuse d to give me loan of such amount as I mentioned that I need 5lack for machinery n 20 lackh for working capital They told that you will be given loan of 7 lackh it's enough for you And in pmegp machinery cost should be 60% n working capital should be 40% [ is it correct what interviewer told me] Is it any process I can go further for my require amount Coz practically it's not possible for me to work in such amount Please share ur guidelines it will be really helpful for my Currier

    1. Surendra NaikSurendra Naik - Post author

      DLTFC appraises the loan applications on same methodology as followed by Banks for approval of loan. You can file grievance against such rejection to the State Director, KVIC.

  17. Arry

    Hello sir, I am a graduate and I want to start my own flour mill,Under PMEGP I want to take a loan of 5-6 lakhs but when I approached bank managers of Pnb, syndicate bank they told me that they can't give me loan as they don't do loan under this scheme.What should I do,who should I approach?

    1. Surendra NaikSurendra Naik - Post author

      You need to apply for loan to KVIP through online.Online submission of applications for loans under PMEGP is mandatory and no manual applications are allowed w.e.f. 01.05.2016.The latest update on how to submit PMEGP loan application online is provided at following URL Click: How to submit PMEGP loan application online? https://www.bankingschool.co.in/loans-and-advances/5316/

      1. Arry

        Should i consult bank manager before applying online as i have to gIve IFSC code of the branch?I consulted 2 bank managers but they told me that they cant give me loan under PMEGP.

        1. Surendra NaikSurendra Naik - Post author

          In your cheque leaf IFSC number is printed. If you wish to take loan from another bank, where you don't have cheque book you will get the IFSC number by clicking prompt button in the online application (where you have entered the bank and branch name next ). However, nothing wrong in discussing the matter with Branch Manager about your intention, if you wish.

  18. ramneek

    hi..I want ask that my father got loan under pmegp 18 years back and he repaid all the loan and now Im 24 and I want to start my business.Am i eligible for the loan under this scheme?

    1. Surendra NaikSurendra Naik - Post author

      Repayment programme will be as per bank's assessment of your repayment capacity. It is like fixing repayment programme of any other term loans viz. loans for micro,small, medium enterprises.

    1. Surendra NaikSurendra Naik - Post author

      It is a condition compulsory for all that no one can avoid it. As long as you do not undergo edp training, you will not get subsidy from thee government. It is an entrepreneurs training you are getting free of cost. Don't worry about usefulness of such training for your business, definitely you will be benefited by the training some way or the other.Best of luck.

  19. Neera Creations

    hello sir plz check as dlftc have cleared my file and pass a loan of rs 2000000 and forwarded to bank 1st bank corporation bank holders my file for 3 months 1st 15 days he passed then after 30days he rejected by wrong reason but when I complaint he reopened the file again and asked for new project report I given that also then he told me to get pollution certificate I told him I have sent undertaking to dpcc but garment stiching is exist in white category and is no requirement for pollution certificate I gvn him mcd permission but he is asking for rs 300000 bribe which I denied so he rejected my file by saying that comercial activityin regedential area but I gvn him permissionand an affidavit stating that if bank have any problem in passing loan here then I can take a factory in industrial area but he said give money and put unit any where I have make complaint to zonal office and head office but no response from them and 2nd bank is saying no application is recived on our portal so plz guid what to do

    1. Surendra NaikSurendra Naik - Post author

      Please ask the bank to give it in writing the reason for refusing the loan. It is obligatory on the part of the bank to give it in writing if they reject any priority sector loan. Threaten them that you are going to complain to Ministry of Finance, Government of India/RBI/Banking Ombudsman if they do not release the loan. Meanwhile, complain to Regional Manager of the bank,General Manager customer service, Managing Director of the bank in writing either by letter or e-mail and inform them of your intention to proceed against the bank, by lodging complaint to Finance Ministry, RBI, Ombudsman, Consumer forum etc. All the best. regards, Surendra Naik

  20. Ashish Bisht

    Sir I have apply for the loan and its been approved as well and I was asked to submit the collateral amount which has been paid as well but still I did not get my lean amount can you help PMEGP/DKYC/DO/2017-2018/110224 Ashish Bisht 7678664219

    1. Surendra NaikSurendra Naik - Post author

      Check up from the branch why they are delaying release of the loan. They need not wait for release of the subsidy for releasing the loan. But you have to complete EDP training to get the subsidy. If the branch is not releasing the loan unreasonably, you may complain to Regional Manager of the bank or any higher authorities up to Managing Director of the Bank. Even after complaining if the bank is holding your loan you have to complain to Finance Ministry, RBI, Ombudsman, Consumer forum etc. All the best. regards, Surendra Naik

      1. Ashish Bisht

        Thanks for the info sir, Just to add on this I applied the loan from third part Union Finance and I have document approval from PMEGP letter head that my amount is approved and I have to pay the collateral amount which I did paid to my agent. but he said that bank asking for advance 6 month EMI which is also paid by me then again today I got the call that bank is ask to pay 18% of loan amount which will be refunded with loan amount. I did not paid the amount and cancel my loan. I am thinking that its a scam and they guys cheated me but not sure how they send me the document on PMEGP and bank of Baroda letter head. Any suggestion because tomorrow I will be going police station to file FIR against them as I have all the details where I have transfer the money. Police can trace the person with account number and bank branch address right ? Thanks Ashish Bisht 7678664219

        1. Surendra NaikSurendra Naik - Post author

          You are taking the right step in complaining to Police.You could have applied directly through online loan application. Anyway, you may send the copies of documents received by you to Director of KVIP for further investigation at their end.

          1. Ashish BIsht

            Yes I did check with PMEGP and as per them its fraud I did apply the loan now directly from the site. do you there any changes of getting my money back as I have the details of that person whom I have transfer the money and his bank account number and branch address by that police can trace the person and I can show them my bank statement as a prove that I did transfer the amount ?

  21. Bimlesh rana

    I have applied for the loan for manufacturing unit kvic approved it but bank refused and say that their target for the kvic loan is completed. What should I do.

  22. Avishek Pal

    Sir, I was trying to register online for this loan, there is a field in the online form which is asking for the financing bank details, I am not sure what details to fill in this field. Do I have to choose my bank from where I will take the loan? Please help.

    1. Surendra NaikSurendra Naik - Post author

      First decide the bank from whom you want to borrow.Then enter IFSC code of that bank/branch, the IFSC no of the branch is printed on the cheque leaf, if you have a cheque book you may find the same otherwise click on GET IFSC CODE button and select correct IFSC Code of Financing Bank. If you have a doubt about getting loan from existing bank for some reason, enter optional Bank IFSC code if needed(2nd Financial Bank), which is only optional.

  23. Avishek Pal

    Sir, what are the % of chances that my application will be accepted & I will get the loan, because I have read all the messages asked to you, there are many people who did not got the loan due to issues with the granting bank. Also do I have to pay any security money before I get the loan, I know that loan above 5 lakhs need collateral, but any thing other than this ?? Pls guide me sir.

    1. Surendra NaikSurendra Naik - Post author

      Loan will be sanctioned to all the applications which conform to the scheme guidelines. The application which do not conform to the guidelines or which remain incomplete or irrelevant even-after consultation with the applicant will be rejected by the concerned Nodal Officer, recording reasons for rejection. Applicant can file grievance against such rejection to the State Director, KVIC.

  24. Sushil kumar

    Can I apply loan of rs 10 lakhs for bussiness entity under pmegp while presently I m doing para teacher job which contractual job under jharkhand Govt.....plz suggest me

    1. Surendra NaikSurendra Naik - Post author

      Yes. You can apply for loan under PMEGP to start a business. Click the following link to learn 'How to submit PMEGP loan application online?' https://www.bankingschool.co.in/loans-and-advances/5316/

  25. jarina shaikh

    Dear sir, I have applied for PMEGP from astha finance and they are asking 2500/- as a file charge. so this finance company is right or fraud? and they were telling that your emi will start after 6months.

    1. Surendra NaikSurendra Naik - Post author

      My personal advise to you is not to approach for loan through middlemen. Many people are cheated by the middlemen.You can directly apply for loan. It is simple and easy. Loan will be sanctioned to all the applications which conform to the scheme guidelines. They will appraise the applications on same methodology as followed by Banks for approval of loan. The DLTFC Committee will consider each application and make its recommendation on-line. The decision of the DLTFC will be conveyed on-line to the District Implementing Agencies (KVIC/KVIB/DIC) within 3 working days of the meeting electronically. The concerned Agency will within 48 hours of the receipt of decision of DLTFC forward the recommended application to the concerned Banks. This entire process has to be completed within 45 days of receipt of application on line. To know 'How to submit PMEGP loan application online?' click the below link https://www.bankingschool.co.in/loans-and-advances/5316/

  26. Surendra NaikSurendra Naik - Post author

    The interest rate applicable for PMEGP loan is that as applicable to MSME loan.Power has been delegated individual bank to decide the interest rate.The interest rates under this scheme doesn't vari much because there is subsidy funding available. Regards. Surendra Naik

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