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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.

As per RBI circular RPCD.MSME & NFS.BC.No.5/06.02.31/2013-14 dated July 1, 2013, Banks are mandated not to accept collateral security in the case of loans upto Rs.10 lakh extended to units in the MSE sector. Banks are also advised to extend collateral-free loans upto Rs. 10 lakh to all units financed under the Prime Minister Employment Generation Programme of KVIC.

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.

Which are the banks and financial institutions  provide loans?

As per KVIC guidelines all the 27 Public Sector Banks are lending under PMEGP scheme. Besides Public sector banks, other financial institutions like all Regional Rural Banks,  Co-operative Banks approved by State Level Task Force Committee headed by Principal Secretary (Industries)/Commissioner (Industries),  Private Sector Scheduled Commercial Banks approved by State Level Task Force Committee headed by Principal Secretary (Industries)/Commissioner (Industries) and  Small Industries Development Bank of India (SIDBI) are lending under PMEGP.

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.

Which are the activities not eligible for PMEGP loan scheme?

The following activities are in the negative list and therefore such activities are not eligible under PMEGP loan schemes

Any industry/business connected with meat, Beedi/Pan/cigar/cigarrette etc, hotels or dhaba or sales outlet serving liquor, preparing /producing tobacco as raw material, tapping of toddy for sale. Any industry/business connected to cultivation of crops/like tea/coffee,rubber etc,sericulture(Cocoon rearing),Horticulture,floriculture, animal husbandry like pissiculture, piggery, poultry,Harvester machines etc.Manufacturing of polythene bags of less than 20 microns thickness and manufacturing of carrry bags or containers made up of recycled plastic storing and carrying, dispensing or packaging of food stuff or any other items which causes environmental problems, industries like processing pashmina wool or such others items like hand-spinning or hand weaving under khadi and village programme, Rural transport (except Auto Rickshaws in Andaman & Nicobar,House Boat, Shikara and tourist boat in J&K, and cycle rickshaws)

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.

Related article:

We have been receiving lots of queries from our readers about Prime Minister’s Employment Generation Programme. Click  PMEGP for answer to Frequently Asked Questions.

 

(255) 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.

      1. Mohsin

        sir i am apply pmegp loan and my laon is approvel and agent tell mi give the 20000 then your loan amount transfer your acc

        1. Surendra NaikSurendra Naik - Post author

          Why should you approach a agent when the loan is sanctioned. Go and meet the Branch Head and ask what are the formalities pending with him to release the loan? If the loan is declined by the branch they have to give it in writing the clear reason why the loan is declined. Moreover, any government sponsored scheme cannot be declined by the branch on its own as they have to take higher office permission for the same. If delaying tactics are used by the branch then you may complain to Head Office, up to Managing Director of the Bank. You can forward the complaint to ministry of finance (banking division),Government or Banking Ombudsman/RBI etc.

      2. V.C.RAVI

        Dear sir I will apply kvic loan pmegp loan at Bangalore Rajajinager Dic office one officer told me you go first bank ask loan is than I will give the sanction. Sir I will start cold pressed oil unit wooden Ghana projects term loan 10 lakhs working capital 10 lakhs I will invest 5 lakhs I go to the bank Peenya industrial area branch sme cell Canara bank manager tell bank parameters 100/60 above our parameters 100/55 so sorry you go to other than bank I will not give loan why your age 55, education SSLC new project, rental billding,s/b account low balance what can to sir please give gudlline to me sir

          1. V.C.RAVI

            Good evening sir I have your advices please give contact details and other than bank I will apporuch I will apporuch job sampige road branch Bangalore

          2. Surendra NaikSurendra Naik - Post author

            State Office, Khadi & Village Industries Commission, Ministry of MSME Govt.of India MDTC Campus, Vihinapur, Doorvaninagar P.O., State Karnataka City Bangalore Pincode 560 016 Telephone No1 080-22727874 Email director_so_kvic_bir@yahoo.com You may also write to Director (PMEGP), Khadi and V.I. Commission, 3 Irla Road, Vile Parle (W), Mumbai - 400 056 e-Mail : regpkvic@gmail.com Phone No: 022-26714320 Ext. 259/253 Tele Fax No : 022-26713686 or Joint Director,. District Industries Centre (DIC) ,Bangalore. Urban District. Industrial Estate,. Rajaji Nagar,. West of Chord Road,. Bangalore-10 . Phone. No. 23501481 / 23501478 e-mail jd-bang-u @ karnatakaindustry.gov.in.

      3. Sumit A Poreddiwar

        Hello sir...i already applied for pmegp loan of 25lk in Bank of Maharashtra...but i am still confused about Rate of intreast Can you plz tell mi what will be the rate of interest bank ask for these type of project...including process fee documentation inspection CGTMSE etc

        1. Surendra NaikSurendra Naik - Post author

          Interest rates on PMEGP loans are as applicable to MSME loans in each bank. Except subsidy no further concession on interest on loan.No processing charge is collected for loans under Government schemes. Regarding CGTMSE I'm sharing below link. https://www.bankingschool.co.in/loans-and-advances/start-ups-to-look-out-for-cgtmse-credit-guarantee-scheme/

          1. Debasish Panda

            Dear Sir, My quairy is that, after the subsidy disbursment to the bank whether the MM can be adjusted with the term loan amount, so that the borrower have to repay of loan for rest of the amount only, i.e MM amount would be deducted from the term loan amount and balance part to be paid with respective interest. Kind regards, Debasish

          2. Surendra NaikSurendra Naik - Post author

            Margin money will be held in separate account. The borrower has to repay entire loan amount to get the margin money (subsidy) after 3 years. If the loan is irregular subsidy amount will be adjusted to the loan account. If the loan is promptly repaid your CIBIL score will be improved which will be helpful in getting loan in future from any financial institution.

          1. Surendra NaikSurendra Naik - Post author

            Don't pay.DLTFC which has approved the loan has no role in releasing the loan. The disbursal of loan is Prerogative of the bank which you have opted. Consult the branch manager of the bank for future transactions.

          2. Amul jain

            Sir in approval letter particular bank name is not mentioned and not a single mgs I receive from them Can I apply online new form and complete all the procedure how many days it will take to complete this

          3. amul jain

            sir how to prepare project file and in which format can you plzz send me one sample of project file after complete procedure how many days it will take sir

          4. Surendra NaikSurendra Naik - Post author

            You will get project formats at the following links https://www.kviconline.gov.in/pmegp/pmegpweb/docs/jsp/newprojectReports.jsp & http://www.kvic.org.in/pmegpwebsite/pmegpwebsite/kvic-regppmegp.in/searchprojprofile.html

  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.

    2. Debasish Panda

      Sir, I wish to repay my term loan as fast as possible to minimise my interest burden, whether i may repay all the amount including interest within the year? Please advise me if any prepaid penalty provision is there to pay to the financing institution for the event of prior term loan squre up (If YES tell me the procedure, how to repay full amount of Term loan by paying minimum amount of interest) Secondly, is there any affect of subsidy amount allocation and disbursment in future, although i would comply the norms of CC at the later stage. Kind regards, Debasish

      1. Surendra NaikSurendra Naik - Post author

        The subsidy(Margin Money) received by the bank will be returned to you only after completion of 3 years. If you really wants to save interest by closing the loan you may leave the loan outstanding to the extent of Margin Money received by the bank. The margin money held by the bank is a special type of deposit which does not offer you interest at the same time interest will not be charge on loan amount equivalent to margin money held by the bank.

        1. Debasish Panda

          Please explain me the matter " To leave the loan outstanding to extent of MM received by the bank" to minimise the interest burden of term loan. Secondly, wheater any centralise bank could claim the proccessing charge under PMEGP scheme? Regards, Debasish

          1. Surendra NaikSurendra Naik - Post author

            For example you have received subsidy (margin money) of Rs.5 lakh and your term loan outstanding at present is Rs.10 lakh, and if you have remitted Rs.5 lakh to your loan account so as to ensure that present outstanding is only Rs.5 lakh. Bank will charge interest on outstanding beyond Rs. 5 lakh in your loan account.

          2. Debasish Panda

            Sir, My first batch of term loan was disbursed on 8th Dec (7.8L) and thereafter bank request for subsidy to KVIC on Nov.10th, as appears in my portal the subsidy (6.9L) released on Dec 17th. After 2 months moratorium period my first premium paying due date is 15 Feb. Now my first question is from which date the loan portion equivalent to the subsidy amount would be considered as interest free? Secondly against 7.8L of loan, the own contribution amount be 0.39L, now how much would be the monthly premium amount (where loan nterst 11.75%, 5 yrs loan, Total term loan-10.35,L loan mode- 95%:5%, ) by Feb 2018? Kind regards, Debasish

  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

          As per DLTFC procedure, the application received through online (now it is compulsory to submit application through online) within 48 hours or two working days, the nodal officer of KVIC should have contacted you.If the DLTFC does not clear your application within 45 days, the concerned bank appraise your application on their own. In case of rejection, you can complain to state director of 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. Sumit A Poreddiwar

        Greetings.....but sir in portal its mention that for these project the rate of intreast will br 6 percent.......isnt it true....

    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 ?

    2. nandurkar s s

      Sir, is bank has to take new loan application form for loan to be sanction under PMEGP scheme, let guide is any format of process note is available. I have received a on line loan application for food manufacturing, (farsan and potato chips etc). The loan application is TL and WC - CC please guide me in this matter. Thanks with regards, NANDURKAR S S

      1. Surendra NaikSurendra Naik - Post author

        I attach a link below on the basis of which you can prepare the process note. You may ignore the points not required for your business. https://www.bankingschool.co.in/financial-analysis/how-to-prepare-a-project-report-or-recommendation-for-bank-loan/

  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. Leeladhar mali

    Sir I am a new enterprenur but i want to start my new business by buying a second hand machinery. Am i applicable for pmegp?? Please guide

    1. Surendra NaikSurendra Naik - Post author

      I'm not sure whether DLTFC will consider buying second hand machinery. As per District Level Taskforce committee (DLTFC) procedure, the nodal officer of KVIC, State KVIB and DIC will interact with you (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 you and also provide hand holding to you at every stage.Apply for loan online.

  27. Umang Soni

    Hello Sir, I want to open a pre primary school and i need 8 lac amount can this category is eligible for having loan. Please reply and revert back to me . Thanks in Advance.

  28. Sachin Arun Yeshwante

    Can i do international business with the help of this loan? Such as importing stuffs, products, raw material, etc from any country? please help.... Thank you, Regards, Sachin Yeshwante +91 9773596139

    1. Surendra NaikSurendra Naik - Post author

      Is it a manufacturing activity or trading activity? Whether you have licence to import such items etc. will be appraised for sanctioning the loan. Any industry/business connected with production/manufacturing or sale of intoxicant items like Beedi/Pan/Cigar/Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor,preparation/producing tobacco as raw materials, are under negative list, loan will not be sanctioned for such purposes.

  29. BHASKAR JYOTI DASska

    Sir i want to open a small manufacturing plant of pavers block. What documents are required. I have a sole proprieitor enterprise.... my requirement is 10lakh to set up the whole plant.... please sir guide me the procedure after applying the online kvic website application.... Thanks. I am waiting for your reply...

    1. Surendra NaikSurendra Naik - Post author

      To know the details after applying for loan, please read the article 'How to submit PMEGP loan application online?' https://www.bankingschool.co.in/loans-and-advances/5316/ You need both term loan and working capital facility for the activity you wanted to start. First of all you have to make market study on demand for the product you wanted to study and confirmed orders. Then prepare a project report explaining market potential, capital requirement, financial analysis on how you will be able repay the loan availed by you, availability of raw material (cement), land and shed for storing, office premises etc. For establishing capital requirement you have to obtain quotations/performa invoices for the following. i. Hydraulically operated Concrete block Making machine for pressure vibration technique, For compaction 3 MP motor, and other Accessories ii. Concrete mixer capacity (ex:10 ctf./7ctf.with 3hp motor) iii. Electric Generator Set 10 HP (ex:1 No.) iv. Submersible water pump with (ex: 1 No). v. Colour Mixer (ex: 1 No.) vi. Mould tools and others (ex:2 sets) vii. Cost of erection and electrification For working capital requirement you have to give estimation for expenses towards office, staff, skilled and unskilled workers, tractor driver, labour for tractor etc. beside space for holding raw materials. 4.Financial analysis comprising cost of production per year , projected sales turnover per year, net profit, break- even point, cash flow and funds flow statements for 3-4 years (for loan repayment period).

  30. HARIBABU

    i proposed to start oil recovery from lemon grass i require tractor for caring rawmeterial pl intimate am i add tractor purchase amount in project report last date for PMEGP application

  31. rajesh gupta

    my wife want to start business hookah bar can she get loan she is house maker what amout of loan she get plz let me know.

    1. Surendra NaikSurendra Naik - Post author

      Any industry/business connected with production/manufacturing or sale of intoxicant items like Beedi/Pan/Cigar/Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor,preparation/producing tobacco as raw materials, tapping of toddy for sale will not be permitted under pmegp.

  32. Gourav Agarwal

    Sir I have received the term loan under pmegp scheme and now thw bank is asking a processing fees for loan, can u pls tell mee whether pmegp loans are exempted from processing fees or do i have to pay it and if it exempted can i find it written somewhere because bank manager is asking for it in written or some circular, I have my account in SBI. Thank you.

    1. Surendra NaikSurendra Naik - Post author

      Boards of individual banks have been advised by RBI to lay out appropriate internal principles and procedures so that usurious interest, including processing and other charges, are not levied by them on loans and advances.Usually, advances under National Scheme Services such as SGSY, SJSRY, PMEGP and all other Govt sponsored schemes and all Priority Sector Advances up to a limit of Rs. 25,000/- are exempted from processing charge. Please verify the loan sanction endorsement, whether collection of processing charge is mentioned and speak to their higher office.

    1. Surendra NaikSurendra Naik - Post author

      There is no income ceiling condition in PMEGP. Income tax payers also can apply for loan under PMEGP. The key condition is that proposed loan is for a start up enterprise.

  33. Sangram Sonawane

    Hello sir, I have applied for PMEGP Loan. But the bank concern person is demanding bribe of 7% . When refused to give the money the bank person has directly rejected the application without any notification. Can you please guide me . Weather I can change the bank which I have mentioned during application. Thanks and regards Sangram

    1. Surendra NaikSurendra Naik - Post author

      Since online submission of loan application is mandatory (manual application directly to the bank not allowed), I presume that your loan was sanctioned by the District Level Taskforce committee (DLTFC) . In the online application itself there is an option to quote second bank's name, if you have quoted the second bank's name you may request DIC to send the sanction letter to the second bank. If the DLTFC does not clear within 45 days, then only Banks can appraise the projects on their own. In case of rejection, the reasons for rejection should be clearly conveyed to the applicant. For loans under the government schemes branch can not reject the loan on its own. Branch has to take permission from higher office to reject a credit prposal.You can file grievance against such rejection to the State Director, KVIC/Regional Manager of the Bank/Bank's Managing Director/ RBI/ Ombudsman or Ministry of Finance.

    1. Surendra NaikSurendra Naik - Post author

      PMEGP scheme does not cover livestock i.e. dairy projects. You have to go for NABARD scheme in which 10 milch animals are covered per project. The project cost would be approx. 5 to 6 lakhs. in which u can get subsidy of 25% (Rs. 1.25 Lakhs).

  34. UMA DEVI

    Sir, I want to start sanitary napkin manufacturing unit with a form self help group. for getting loan PMEGP scheme, this is necessary for registred self help group, who can give training for manufacturing of product. Uma kolkata

    1. Surendra NaikSurendra Naik - Post author

      In case of SHGs registration is not required for getting loan under PMEGP scheme. I have no idea who gives training for manufacturing sanitary napkins. I find one U tube link https://www.youtube.com/watch?v=RfYDOcl5zuI, you may search in google for other links.

  35. surender.T

    Hi sir iam applied for pmegp loan and i got loan approved but in collateral latter they maintained to pay 50,000 before approvel iam getting calls from secure finance agents loan approval date is 10-11-2017 agent is telling me to pay money is their ani solution for my loan approval plz give some advice sir to get my approved loan.

      1. Surendra NaikSurendra Naik - Post author

        The person who has contacted you for bribe appears to be a fraud. You may directly contact and complain the matter to District implementing agencies like KVIC/KVIB/DIC who are suppose to convey DLTFC sanction within 48 hours to the concerned bank. You can file grievance against sanctioning authorities, (if your application is rejected without valid reason), to the State Director of KVIC.

    1. Surendra NaikSurendra Naik - Post author

      The person who has contacted you for bribe appears to be a fraud. You may directly contact and complain the matter to District implementing agencies like KVIC/KVIB/DIC who are suppose to convey DLTFC sanction within 48 hours to the concerned bank. You can file grievance against sanctioning authorities, (if your application is rejected without valid reason), to the State Director of KVIC.

  36. Prakash

    Respected Sir, I want to start Poultry farming cum chicks hatchery business in village .My project report is 15 lakhs.Sir can i get loan under PMEGP schemes. I have done the all Poultry farming trainings . Sir I am eligible or not for this PMEGP schemes?

    1. Surendra NaikSurendra Naik - Post author

      Mr.Prakash, Department of Animal Husbandry, Dairying and Fisheries (DAHD&F), GoI launched a scheme titled “Venture Capital Scheme for Dairy and Poultry”. I understand that you get subsidy from NABARD under Dairy Entrepreneurship Development Scheme'for the above activity. Please search and find out whether the scheme is beneficial to you.

  37. abhilash k kandiyil

    Dear Sir, I am planning start a Chips manufacturing unit in my Panchayat[Rural Area]. Overall cost of the project is 24.5 Lakh.Please clarify following points. 1. For selection of a bank[for online application],we have to take prior consent/ project approval from the bank before applying through online? 2. Under PMEGP scheme, Whether each area is allotted for specific bank?if yes,Whether I have to approach same bank ? Is that mandatory ? 3. Whether Population certificate is mandatory for online application?Where shall I get it? 4.Approval of loan under CGTMSE [without collateral] scheme is Branch manager's discretion or borrower can select that option or DLTFC will decide?

    1. Surendra NaikSurendra Naik - Post author

      Hello Abhilash, 1.No need to take prior permission of Bank Manager. Project approval and credit appraisal is done by DLTFC in the same manner a bank is appraising a loan proposal. 2.The service area approach is not existing now. Customer can go and approach any bank convenient to him. However, you have to ensure that the bank through you want to avail loan is servicing in the are where your proposed unit is situated. If your unit is far off from the branch, they may not agree to disburse loan for one or other reasons. 3. Any area classified as Village as per the revenue record of the State, irrespective of the population. It also includes an area even if classified as town provided its population does not exceed 20000 . DLTFC will have the list of rural branches. 4.In the matter of security, its banks discretion based on their policy and RBI guidelines.You have to inform the bank that you are opting for CGTMSE guarantee and ready to pay premium for the same. Best of luck, Regards, Surendra Naik

    1. Surendra NaikSurendra Naik - Post author

      The interest rates under this scheme doesn't vary much, banks charge interest rate on PMEGP loans as applicable for MSME loans.Ladies do not enjoy any interest concession under this scheme.

  38. Likith Raj

    Sir I applied for PMEGP loan & it also approved 25 lakh but not even a single bank releasing amount all of they told we don't have that much of target I have approached 3to4 banks so what can I do now sir please suggest me sir

    1. Surendra NaikSurendra Naik - Post author

      You may contact the DIC and report them that nominated bank is not releasing the loan sanctioned by them. You may directly lodge your grievance to Director of KVIC, RBI, Ministry of Finance (banking department), banking ombudsman etc.if the nominated bank is refusing to release the loan sanctioned.Ask the nominated bank (send a notice by Regd.Post, Ack.due) to give it in writing the reason for not releasing the loan.

  39. janipasha

    Hi Sir, This is Janipasha from Bangalore and i have Applied the PMEGP"loan through SV Finance and they processed the Application and share the Receipt of payment and the Application ID also and i got email from kvicverification@gmail.com stated that your loan is Approved and you need to pay the security Amount of 4% of security amount need to deposit and this will refund after 7 to 10 working days . Loan Amount Approved : 500000. as per the Guide lines the there is no collateral security Amount is required up to 5-lacs and how take the step further and i am attaching the Payment receipt of 4200/RS. Application ID : KVAS16175796-1701890. Please check this Application ID is genuine or not and i am unable to attach the Report. Please help me Thanks, Janipasha.sk

    1. Surendra NaikSurendra Naik - Post author

      You have to apply directly through online for PMEGP loan. Middleman cannot process your application. If you wish, you may directly contact nearest KVIC or DIC office and get clarification from them. Don't pay single paise to these people. Your loan will be automatically sanctioned, if you apply for loan through online (in case application is otherwise in order). To know how to submit PMEGP loan application online, click the following link https://www.bankingschool.co.in/loans-and-advances/5316/

  40. vishal sharma

    sir my lian aplication has been forewared to bank but that bank doesnt sponser such scheem as its not nationalise bamk........So how can i change the bank details again.

    1. Surendra NaikSurendra Naik - Post author

      As per KVIC guidelines all the 27 Public Sector Banks are lending under PMEGP scheme. Besides Public sector banks, other financial institutions like all Regional Rural Banks, Co-operative Banks approved by State Level Task Force Committee headed by Principal Secretary (Industries)/Commissioner (Industries), Private Sector Scheduled Commercial Banks approved by State Level Task Force Committee headed by Principal Secretary (Industries)/Commissioner (Industries) and Small Industries Development Bank of India (SIDBI) are lending under PMEGP. If the bank approached by you is not a approved list of banks the taskforce should not have sent the loan sanction endorsement to said bank. Anyhow, you contact and inform the KVIC/DIC as the case may be and request them to send the sanction endorsement to another bank who are ready to release the loan.

  41. Bhisma sagolsem

    Dear Respected Sir, Sir I'm from Imphal,Manipur and mine pmegp loan has been placed since Feb 2017 and already summited whatever documents they ask whenever I ask when its going to be sanctions he always reply we have to send to there Regional office and they are going to sanctions but till today they always make excuses they ask me to summit those documents which is not necessary and sometimes he show me all the list which they have given the private and housing loan which is not clear but I ask sir why do u always mentioning an showing me those which is not related its out of my concern the branch manager was asking me to summit my property in mortgage for pmegp which is not included he also ask me for receipt of khasna bill which already been summited before two weeks before and today itself saying me that I haven't summited yet so when I say I can summit original receipt by today itself then he says he can't lend me a loan becoz I'm not interested but I was present at his bank every day I've been running here and there for useless documents which is not concern so plz do me suggest how can I complain for this manager. The bank is Syndicate bank which I've been there customer for a quit long time since they have started running the bank.even the branch manager told me that I'm busy all the time he will say our loan manager even cashier they are very new they don't know how to work properly so I have to do it by my self he don't have respect he don't know how deal with there customer also, or we need to keep some property in mortgage and all... Plz do suggest me Yours Sincerely Sagolsem Bhisma Singh

    1. Surendra NaikSurendra Naik - Post author

      Now online submission of loan applications under PMEGP is mandatory and no manual applications are allowed w.e.f. 01.05.2016. Therefore you need not wait for the bank to sanction the loan. The task force would sanction the loan and forward the sanction copy to the bank you have opted. If you are not happy with the present bank you may quote another bank's loan where you are ready to take loan.The latest update on how to submit PMEGP loan application online is provided at following URL https://www.bankingschool.co.in/loans-and-advances/5316/ If you want to complain against the manager, you may complain to their Head Office.

        1. Surendra NaikSurendra Naik - Post author

          Subsidy amount will be immediately released to bank. The Bank will keep the amount separately for three years. Loan Amount equivalent to Subsidy amount will not be levied interest and at the same time deposit will not receive interest. In case you fail to prompt repay the loan amount, the subsidy amount will adjusted towards loan and bank will initiate recovery action against you to recover the loan outstanding. However, bank need not wait to release the loan till till they receive the subsidy amount. Once the loan is sanctioned, EDP training completed by you KVIP will remit the subsidy amount to the nodal branch of the bank who will in turn transmit the amount who have released the loan.

          1. Surendra NaikSurendra Naik - Post author

            Hello, This mentioned email address doesn't belong to me. I also have my apprehensions whether it belongs to PMEGP scheme because it's a gmail address and doesn't carry the official domain name related to govt. departments/agencies. I would advice you to be careful while communicating with that address.

  42. Nasir Hussain

    Sir, My self Nasir Hussain from Leh - ladakh i am suffering from lots of problem before last one month, I am applied for the PMEGP Loan this year, qualified for the PMEGP loan, I have done also EDP training. now today the SBI bank manager , Choklamsar - Leh ( Ladakh ) J& K. said that your shop is not ready and also said that their is no machinery at the said location, then for wt purpose they are giving lone. sir wt should i do.

    1. Surendra NaikSurendra Naik - Post author

      You may talk to him and premises chosen by you for the business activities.Impress him that the shop will be ready with the finance made by the bank. In support of your intention you may show him the perform invoice/quotations for the items to be purchased by you.

    2. Nasir Hussain

      Sir now the SBI manger ,written a letter to KVIB - leh ,,the last point which i do not understand,, the point is.... The case has been already rejected by us in PEMGP site. May i not move to the next Alternative bank option S.no. 19 , which i chose J&K bank ,branch , skalzangling - leh, in online application form.? Is my Lone case is rejected ?

      1. Surendra NaikSurendra Naik - Post author

        As per Government guidelines, in case the loan under Government schemes (including loan under PMEGP) the bank has to give the reason to the loan applicant in writing. Please demand the letter in writing giving reason for declining your loan application. Simultaneously contact the nodal officer of KVIC, State KVIB and DIC (district level task force)and explain him about the position. Hope he/she will do all the required correction in the application in consultation/cross checking with you. Failing which as I said earlier, you need to complain to Banking Ombudsman (no fee is payable),RBI,Mininistry of finance, Chairman of SBI etc.

  43. SOHAN

    Sir i have done PG and want to take loan under PMEGP But i am also trying to get govt job .If i get loan. Can I get the govt. job in future?

    1. Surendra NaikSurendra Naik - Post author

      There is no such restriction for availing loan loan under PMEGP. You can definitely apply for Government job. However, you should firmly decide whether to go for job or business.Starting a business with loan and discontinuing it in the middle may cause huge losses to you. If you are trying for a Government Job, I feel that you should concentrate on passing the exam and interviews. You are unable to get a job within the desired period you may start a business with the help of PMEGP loan.

    2. Surendra NaikSurendra Naik - Post author

      No such condition that you should not join for a Government Job. However, I feel you have to concentrate on exam preparation for the job and similarly you have to fully concentrate on business if you start a business. So decide yourself what is your ultimate aim.

  44. jebaraj

    sir i want to start trading transport company . I can apply pmegp loan am i eligible? and plz suggest business from below which is eligible manpower agency consultancy tours and travels insurance office event management plz suggest me sir my number 9566068410

    1. Surendra NaikSurendra Naik - Post author

      I have apprehension that you have approached wrong people for the purpose. The loans are directly sanctioned under online process. Anyways, please check while dealing with such people.

  45. Zahid

    Hello Sir, I am from Jamshedpur Jharkhand and I have apply for the PMEGP loan and for that Population Certificate also required while uploading the document. I dont have Population certificate and first timed I heard about this, and not able find the right way to get this certificate. Kindly help me and provide the details to make Population certificate.

    1. Surendra NaikSurendra Naik - Post author

      You have to apply for PMEGP loan through online application. There is no need to mention the population of the village/town where you want to set up the business. They have the census record of all the places. To know more click the following URL https://www.bankingschool.co.in/loans-and-advances/5316/ For the purpose of correct identification of population of a centre (village/town) one may logon to website (www.censusindia.gov.in). Clarifications on population may also be obtained from the Block Development Officer, Tehsildar, Municipality or Municipal Corporation Office or Office of the District Collector.

      1. Zahid

        Sir, While apply for the PMEGP loan on the website, after filled up all details on the first page, they send User Id & Password to the mobile, then second page will open and we need to upload project details and Population Certificate. These field are mandatory to upload. But when I google about the Population Certificate, in youtube saying that, we need to download the form and after fillup online and need to submit in local VDO officer and other website saying that we need to upload the Population details of that area where you are planning to start your manufacturing Unit. I am totally confused. Please help

        1. Surendra NaikSurendra Naik - Post author

          You need to upload the Population details of area where you are planning to start your business activities/Unit.You may contact village development officer of the area and check up whether he will issue the population certificate, if not contact DIC and ask them how to get the population certificate.

  46. Surendra NaikSurendra Naik - Post author

    ou have to apply for PMEGP loan through online application. There is no need to mention the population of the village/town where you want to set up the business. They have the census record of all the places. To know more click the following URL https://www.bankingschool.co.in/loans-and-advances/5316/ For the purpose of correct identification of a centre at village/town one may logon to website (www.censusindia.gov.in). Clarifications on population may also be obtained from the Block Development Officer, Tehsildar, Municipality or Municipal Corporation Office or Office of the District Collector.

    1. Mohamad Muzafar

      I have received all the benefits under PMEGP, therfore i had almost accurate information regarding this scheme, as i have seen all the answers against different questions posed by different personals i found you are a great person and u have guided every one correctly. Being an entrepreneur i have met only few humble personals like you, therfore u deserve my big salute

          1. Surendra NaikSurendra Naik - Post author

            The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries

  47. K.Yukhase sangtam

    Sir,recently I was selected by task force for pmegp loan with project amount of Rs.1500000/- to set up Bakery Product in Dimapur Nagaland.The DIC (G.M) directed my bank to Federal Bank.But when I approach the Federal Bank,They ask me to produced a guarantor who serve as regularize Govt.job holder with their salary details forwarded by head of Department.So,I arranged a guarantor as per their instruction and approach the Bank.But again,The Bank Official told me that only a guarantor by govt.job holder is not sufficient and again they asked me bring a Govt.approved Land Patta with building original copy to submit in bank which I don't got a land to produced.So Sir,please help me out to avail my pmegp loans.Is it mandatory in Federal Bank that for pmegp loan,I'have to keep security by both i) Regularize Govt.job holder as guarantor of loan & ii) To submit the original paper of Land Patta issue by Govt.?Sir,I'll be eagerly waiting for your reply. Thank you Sir. Contact or e-mail in this No- 8794568458 & 7005068767.

    1. Surendra NaikSurendra Naik - Post author

      As you belong to North East Region of Inda you are eligible for the guarantee cover of 80% of loan amount under CGTMSE scheme.However, you need to pay composite all-in Annual Guarantee Fee of 0.75 % p.a. of the credit facility sanctioned. Tell the banker that you are opting for CGTMSE guarantee scheme in place of third party guarantee. Under CGTMSE scheme bank cannot ask for any collateral security from you.

    1. Surendra NaikSurendra Naik - Post author

      You may apply for loan. But you may have to prepare a project report to establish why you need loan and also demand for computer assembling as laptops and androids have replaced the computers at many places.

  48. Lokesh

    Hi sir Lokesh here I want to know the way of get the subsidie amount like they will reduce emi amount or will credit our current account. Please tel me sir

    1. Surendra NaikSurendra Naik - Post author

      Subsidy amount will not be immediately paid to the borrower . The amount received by the bank will be kept in separate head and interest will not be charged to loan account equivalent to subsidy. After 3 years, if repayment is regular the subsidy amount will be credited to borrower's account. If the loan account is irregular, subsidy amount will be adjusted to the loan account.

  49. Lokesh

    Hello sir we needs to pay any government fees to get loan under PMEP and MSME, if needed what is the percentage for per hundred please update sir

  50. Gunasekar

    Hi Sir, I have planned to start a new Mineral Water Purification Plant in rural area. I approached two banks near my place. They are ready to provide loan on asset based . But not ready to provide loan under PMEGP. Telling reason as "can't provide loan under PMEGP for water plant" . Is it true? What is solution for this ? How to approach? Thank u sir.

    1. Surendra NaikSurendra Naik - Post author

      There is no restriction for lending RO process water purification unit. I had granted loan of Rs.25 lakhs to a borrower under PMEGP for the same type of project in Bengalore. But Banks in rural areas may have the apprehension about demand for bottled water in rural area. Please study well before venturing for such projects.

  51. Shubham gupta

    Respect sir I am from bhopal - sir I want to strt my business for that I want loan up to 12 lac rup basically my project is to start a wine bottlr washing factory so how I get loan sir please help mee

    1. Surendra NaikSurendra Naik - Post author

      As per PMEGP scheme any industry/business connected with meat, Beedi/Pan/cigar/cigarrette etc, hotels or dhaba or sales outlet serving liquor, preparing /producing tobacco as raw material, tapping of toddy for sale. I'm not sure whether you are eligible for the loan as it is connected to liquor business. However, you may check up from local DIC whether bottle cleaning is eligible for PMEGP.

  52. Dinesh Kumar

    I am working in an MNC and Wife is working in Garment Manufacturing Unit. We would like to start a Garment Manufacturing unit in Chennai, Tamilnadu. First whom i should approach here in Chennai to get more details on PMEGP. Please advise.

    1. Surendra NaikSurendra Naik - Post author

      If you wish, you can discuss with the Bank Manger from where you intended to borrow. Alternatively though not necessary, you may meet the nodal officer of the DIC and discuss with him about your project.

  53. Prasad

    Sir, my name is prasad.i am from andhra pradesh. I want to start a cattle diary form under pmegp in rural area is it come under pmegp and how to get nabard subsidy for forming

  54. Bijeesh

    Will they accept the proposal for starting a homeopathic clinic for BHMS graduate? Is it mandatory to generate jobs for this scheme?

  55. chetan deore

    I applied loan proposal under PMEGP @ 4 Lack Bust by mistek i put only 40000 four thousand and DIC Jalgaon Pass my loan proposal to bank ..so what should i do now

  56. sarvesh kumar

    Sir I am MBA (regular) Without EDP training Kya business ke liye mughe loan mil sakta hai. Ya mughe bhi EDP Karni padegi.

    1. Surendra NaikSurendra Naik - Post author

      If you are already having EDP certificate, you need not again undergo for the training.Though you are MBA post graduate, the rule is without EDP certificate subsidy will not be released. I am not sure, but presume that you need to attend the training provided by the Government at its cost.

  57. Rakesh kumar panigrahi

    Sir, i belongs to a rural or semi urban area and And i want to start a business through pmegp scheme.. I'll try to contact some of my nearest bank but every bank person says this scheme applicable for urban area. So what should i do next please guide me or give me some suggestions.

    1. Surendra NaikSurendra Naik - Post author

      Loans under PMEGP scheme are granted in Rural area also. In fact units in rural/semi urban area get more subsidy under the scheme.You can file grievance at State Director, KVIC.

  58. Sajji

    Dear Sir, I wanted to apply for PMEGP Scheme. My business is into floriculture exports. I wanted 25 lac to construct a polyhouse and grow flowers. Will this scheme be applicable? Under the negative list of activities: Floriculture is exempted from this scheme. However, value addition is allowed. Can you please guide how can I go about this.

    1. Surendra NaikSurendra Naik - Post author

      I don't have knowledge of floriculture business. Since growing flowers do not come under classification of manufacturing or service sectors which are only considered for loans under PMEGP scheme, I'm not sure you will be eligible for the loan under the scheme. you may directly enquire from nearest DIC office regarding eligibility norms for the loan.

  59. Abu Shaiba

    Hi Sir, Thank you for sharing your knowledge on the PMEGP scheme. I have prepared a project report of a bussines, total project cost is 20 lacs, I have few questions before i submit the application online. -Quest1 : My palce is in rurual area and being an OBC i understand my contribution will be 5 % here i.e 1lac and 19 lac has to be given by bank. So once apporved will the bank realease the 19 lac immediatley for my business? - Quest: will the interest be calculated on entire 19 lac or 19 lac minus subidy amount ? - The repayment emi is monthly and doest it starts immediatly after the month of disbursal ? - Do i need to talk to a bank before i apply with KVIC Your advised on the above will be higly appreciated. Many thanks in advance. Best Regards, Abu

    1. Surendra NaikSurendra Naik - Post author

      Reply to query 1: Bank will disburse 19 lacs either in one shot or in phased manner as per business requirement. You have to keep margin money of Rs. 1 lakh in your SB account. Q2: Interest will be calculated on principle less subsidy amount received. However, subsidy amount does not earn any interest for the period held with the bank. Q3: Repayment period will be commenced from the revenue received from the operation of the unit. Q4: If you are comfortable with the Manager you can inform him that you have applied for the loan PMEGP and opted for his bank for disbursal of the loan.

  60. VENKATESH

    dear sir i am from urban area i already select place for starting my business it was located at rural area, in applying process i need to upload population certificate my question was this population certificate regarding my own place/ my business place? where i can get the population certificate?

    1. Surendra NaikSurendra Naik - Post author

      Dear Mr.Venkatesh, You need to upload population certificate of your business place. Rural area is defined as (i) Any area classified as Village as per the revenue record of the State/Union Territory, irrespective of population. (ii) It will also include any area even if classified as town, provided its population does not exceed 20,000 persons. You may approach panchayat office or revenue department of your area for the certificate. you can also check population of towns and villages of India provided by the Office of Registrar General and Census Commissioner of India at https://services.india.gov.in/service/.../check-population-of-towns-and-villages-of-indi...

  61. fawwaz

    Dear Sir , First of all i will thank u and appriciate for ur helpful guidance , information . GOD bless u , sir i have some quries plz guide me ,i decided to start snack manufacturing ( chips,wraffers) and for that i required fund of approxmetly 15 lakhs . so which will be better for applying govt loan msme or pmegp ? and i have account in central bank , can i pmegp loan from other bank ? also before applying loan online do i have to register my company ? or i can register after applying kindly guide me ..... Thanks & Best Regards

    1. Surendra NaikSurendra Naik - Post author

      Dear Fawwaz, I advise you to borrow under PMEGP to get subsidy.PMEGP loans are also MSME loans available to start ups and not for existing MSME units. You can avail loan in your individual name and register the firm later on if needed. if you wish you can register Udyog Aadhar read: https://www.bankingschool.co.in/knowledge-capsule/udyog-aadhaar-replaces-old-system-of-msmessi-registration/ You can avail loan from any bank (There is an option in online application for giving names of two banks)

  62. RUHUL AMIN

    Sir, with due respect I would like to inform you that I have applied for a loan under pmegp through DICC, Lakhimpur, Assam. I have been selected and my loan proposal is sent to my bank (SBI), but the branch manager declined to sanction the loan. I have met him officially and request to consider my loan proposal but He is denying it. The fact he told me that they had given so many pmegp loan before, but most of the loan beneficiary have not been recovered their loan amount. His behavior was very aggressive and told that he will not sanction any pmegp loan at any cost. He can give written reply if necessary. So, I highly request you kindly to give me a solution please. My project is under service and textile which is a rural pharmacy. I have necessary drug license of concerned authority and 5 years experience of pharmaceutical products sales and service.

    1. Surendra NaikSurendra Naik - Post author

      Ask the bank to give it in writing the reason for declining the loan. Send your grievance with the copies to the Director, State KVIC, chairman of the bank, RBI, Ministry of finance (banking division),Banking Ombudsman etc.

    1. Surendra NaikSurendra Naik - Post author

      Public Sector Banks ,Regional Rural Banks(RRB), Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee. Please check up from ICICI bank whether give loan from pmegp.

  63. Parag

    Dear Sir I have stated new business on July 2017 for Trading Import export for machinery spares parts and also I received orders, but to execute the order I need the finance, please suggest how can I get loan against Order, as I approached bank they said they cannot provide loan for New firm.

    1. Surendra NaikSurendra Naik - Post author

      It is bank's discretion either to sanction or decline the loan proposal received by it. You have mentioned that you are the first time exporter. In such cases banks do not entertain working capital limit request based on firm order received by you. It is also not good for you to start export business without having knowledge if the importer fails to make payment for the goods sent by you. In the beginning, you need to insist for LC from the importer's bank which guarantees the payment for your bill. With the assurance of foreign bank for exported items, the Bank in India will be ready to negotiate such LC bills. Further, there may not be much problem for the bank to grant you Packing Credit loan for working capital purpose as they get guarantee for the loan amount from ECGC. Please discuss with the bank manager as well with the importer whether he is agreeable to open LC on your behalf.

    2. Parag

      Dear Sir Thank you for your reply, at present I have received orders from India company and I get regular orders, some order I executed, and to execute other orders I need loan, so how can I apply and get loan.

  64. Loveleen

    Sir, I wish to apply for loan under PMEGpP do I need NOC or sanction from Regional office in case the loan is of the spouse of the member working in the same bank member is posted in Reg Office

    1. Surendra NaikSurendra Naik - Post author

      If the bank's staff rule specifies so, yes. Usually, in the same branch where the staff member is working where the relatives want to borrow needs higher office permission. If you do not want all these procedure you can very well borrow from some other bank.

    1. Surendra NaikSurendra Naik - Post author

      The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries.

  65. Ajay

    Sir I have applied for loan even I have attended a meeting in ADM office I applied for 10 lakhs but they have approved only 5 lakh in which I am not able to start up my business kindly guide me how it will increase and what will be the procedure for this. Thanks nd Regards

    1. Surendra NaikSurendra Naik - Post author

      The loan is considered on the basis of Capital Expenditure, one cycle of working capital and 10% of project cost as own contribution in case of General category and 5% of project cost in case of weaker section.I'm not sure whether they will reconsider your request to enhance the limit. Verify the projections made by you, if you find major mistake in considering the loan, you may contact the nodal officer at DIC and explore the possibility of enhancement of the limit sanctioned by them.

  66. Hrishi Mishra

    sir,my pmegp loan 22 lacs approved from Dic But bank manager tell me for mortgage land and also paid fee of valuation authority who value of land Please give me advise It is right or wrong ??? But read in pmegp not need any security .

    1. Surendra NaikSurendra Naik - Post author

      The Bank Manager is right. when bank sanctions loan of 22 lakhs to you, it needs some collateral security for the loan released by it. Wherever land and building is offered as security, valuation of such property as well as legal opinion on title of the property is must. The borrower has to pay professional charges to the valuer and the advacate.

  67. Sunil kumar

    Sir as a banker we have to finance rs. 20 Lakhs in pmegp. With collateral please tell me how much amt of collateral we have required

    1. Surendra NaikSurendra Naik - Post author

      The value of collateral security should be normally more than 25% to 50% of loan value. This is because the forced sale value of the asset will be less than the market value of the asset. Further there is an element of interest accrued on loan account which has to be recovered.

  68. Praveen Tambe

    Sir I want loan to construct a home...Up to 10lack in my village but my plot is not NA so can I get loan sir... Syndicate bank is there in my village , is that bank provide me loan sir...Plz help me

    1. Surendra NaikSurendra Naik - Post author

      If the land is non-agriculture/non-industrial land you may get the loan from the bank for construction of house provided you conform to the requirement of loan conditions. Contact the Bank Manager with the proposal.

  69. srivalli

    hi sir i applied two times in pmegp loan . but reject chesaru because project report 5,00,000 ki petanu sir ..2,00,000 varaku project pampinchandi antunaru apudu ok chesthamantunaru sir nenu mali 3rd time apply chesthe already na adhaar number pai apply chesi vunde so mali apply cheyadaniki ledu ane chupisthunde sir ....mali nenu apply cheyocha sir

  70. srivalli

    sir.with due respect, i have applied for a loan pmegp through dic hyderabad..but my project is rejected DLTFC meeting bco'z wheather the project cost is more..but my project cost is only 6 lakhs.. sir can i applied again pmegp loan 2nd time.

    1. Surendra NaikSurendra Naik - Post author

      The amount of bank credit will be on the basis ofthe total cost of the project (i.e Cost of equipment plus one cycle of working capital) less owner's contribution to the project. Try again with project report.

  71. pran

    Hello sir! I've applied online under scheme for vermiculture unit for which i've trained. And now i've got the bank forwarding application from kvic reply and approvement to get the loan of 4 lakh rupees. So I've visited to the bank where i prepared to get the loan But Unexpectedly, the problem is -the bank manager was refusing me to sanction of the loan because of so many forwarding applications are coming to the bank . And their Target to give loan is very less so they told they can't sanction my loan. So please suggest me what do now!!? Please reply a help sir!

  72. Raghu Devarakonda

    Hi sir good morning I want some clarification about this pmegp scheme. Sir in my area there is lot of demanding of a xerox centre so I'm planning to start a new xerox shop. So when I m searching project file for xerox shop I'm not able to find it. I applied online but haven't submitted the project file so if you help me to find that then application will go forward for other formalities sir please help me to find that.

    1. Surendra NaikSurendra Naik - Post author

      Only two are the major investment in the business of photocopy shop. You need space for the shop with electric connection and buy photo copy machine, lamination machine, and binding machine.You have to collect proforma invoice for branded machines like Ricoh, xerox, canon, Konica etc. You need not decide whether you can print /copy/scan in colour.Accordingly prepare a project report in simple lines Cost of machnes (Mention the brand of the machines),Cost of the counter,Premises own /rented (investment required), Your contribution to the business + Bank Loan= Total investment

  73. 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

  74. Aadil khan

    Sir mene pemegp me application dale hue 7 mahine ho gay hai or DLTFC me hi file padi hai usse age nai jari hai jis ke throw mene apply kiya tha vo bolre hai ki bank or kvic valo ke pass abhi budget nahi hai isliye vo march me file ho dekhenge is it true sir

  75. Surendra NaikSurendra Naik - Post author

    I'm not sure but the State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give advertisements locally through print & electronic media inviting applications at periodical intervals along with project proposals from prospective beneficiaries according to their targets. The scheme will also be advertised /publicized through the Panchayati Raj Institutions which will also assist in identification of beneficiaries.

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