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Under the Prime Minister's Employment Generation Programme, a loan facility, for small and medium businesses is provided to promote Local Vocal and increase the earning capacity of artisans and the growth rate of rural and urban employment.
PMEGP works to help people start new ventures that can generate employment in both rural and urban areas. It aims to bring together traditional artisans and unemployed youth in both rural and urban areas and create avenues for self-employment.
Any person seeking a loan of 10 lakh or up to 25 lakhs should be above 18 years of age and must have passed at least 8th standard. There is an income limit to avail of the loan. However, existing businesses under PMEGP can not avail of the loan.
The interest rates and subsidies offered under the PMEGP scheme may vary from bank to bank. It depends on the applicant's profile, credit eligibility, paying capacity, the number of years the business has been running and the total project cost.
The documents required for the PMEGP loan application include filled application form with a passport-size photograph, Project report, Aadhar card and other documents required by the bank.
For filling up the loan application online, one has to visit the PMEGP website, follow guidelines, fill in the required information and save it. After saving the applicant ID and password is sent to the registered number.
To apply offline, one has to apply, fill in the details and take a printout. After taking a printout, one can submit it to the nearest bank and complete the formalities required there.
Compiled by Syed Muskan