The central government of India had launched this scheme called PMEGP to roll down the unemployment and to provide employment with self-satisfied in choosing profession field.
As the Technology increasing day by day our government also striving to give the best future all the category people in our country, this is one kind of awareness to treat everyone equal by introducing these type of schemes for the better tomorrow.Sponsored Links:
The loan details will discuss who can apply, who are not eligible, benefits and work process.
The below sections will discuss different aspects of the PMEGP loan, allocation of money that is given under a PMEGP loan
- Once the application is approved the bank allocates 95% of the project cost for weaker society or 90% for general applicants
- 15-35% is the margin money or subsidy that is provided by the government, the amount of margin money that will be taken by banks will be proportional to the actual capital expenditure availed by the applicant
- The rest of the margin that is proportional to the amount not availed will be returned to the Khadi and village industries commission
- The rate of interest on the PMEGP loan will be at a normal rate as applicable to the MSE sector, almost many banks provide a rate that starts around 11-12%
- After an initial stage within the 6 months, the bank may provide the repayment schedule of 3-7 years for the borrowers to pay back the PMEGP loan
- The margin money is kept in a separate savings account that is linked to the loan account and fixed for 3 long years, after which it is adjusted with the PMEGP loan or released
- This loan requires the working capital expenditure to be equal to the cash credit limit. Moreover, it should not be less than 75% utilization of the sanctioned limit.
The PMEGP loan will not available for some categories they were mentioned and explained with a perfect reason, in according to the analysis of annual income of the applicant the application will be sanctionedSponsored Links: