The PMEGP loan full form is Prime Minister’s Employment Generation Programme

The Prime Minister Employment Generation Programme (PMEGP) is a scheme backed by the Government of India, offering credit-linked subsidies. Administered nationally by the Khadi and Village Industries Commission (KVIC), it falls under the Ministry of Micro, Small, and Medium Enterprises. This initiative aims to provide financial support for entrepreneurs looking to kickstart new ventures.

Features Of PMEGP Loan Scheme

You can further understand PMEGP Loan scheme with the following loan-related details:-

The PMEGP term loan Scheme has no income ceiling for starting projects and ventures.

Banks allocate 90-95% of funds less 15-35% subsidy as PMEGP loan Scheme

The rate of interest on PMEGP loan is at the regular applicable rate for the MSME sector.

The PMEGP Loan Tenure is for 3 – 7 years including repayment years after an initial moratorium of maximum of six months.

The government subsidy is locked in for a period of 3 years in a separate saving account before either being adjusted to the PMEGP loan or released.

Working capital expenditure should be equal to the cash credit limit at least once in 3 years after the subsidy is locked in and utilization should not run below 75% of the sanctioned limit.