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Prime Minister’s Employment Generation Programme (PMEGP)

Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy programme administered by the Ministry of Micro, Small and Medium Enterprises, Government of India. Khadi & Village Industries Commission (KVIC), is the nodal agency at national level for implementation of the scheme. At state level the scheme is implemented through KVIC, KVIB and District Industries center.

Best PMEGP Loans in Kerala and Tamil Nadu

Cochin Financial Service takes immense pride in empowering entrepreneurs through the PMEGP loan scheme. Their commitment to your success goes beyond just financial assistance, as they strive to nurture and support your entrepreneurial journey every step of the way. Contact us today to learn more about our PMEGP loan options

Service Areas in Kerala:

We provide best  business loans in the following cities and regions of Kerala: Thiruvananthapuram, Kollam, Pathanamthitta, Kottayam, Alappuzha, Ernakulam, Thrissur, Palakkad, Malappuram, Kozhikode, Kannur, and Kasaragod. Whether you’re starting a new venture, looking to grow an existing business, or need funding for a specific project, we have the expertise and resources to help.

Service Areas in Tamil Nadu:

In addition to serving business owners in Kerala, we also provide business loans in Tamil Nadu, including Chennai, Coimbatore, Selam, and Thiruchi. Our team of experienced loan specialists will work with you to understand your needs and help you find the right financing solution for your business.

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Objectives of Prime Minister’s Employment Generation Programme (PMEGP)

  • To generate employment opportunities in rural as well as urban areas through setting up of self employment ventures.
  • To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and unemployed youth, so as to help arrest migration of rural youth to urban areas.

The scheme is applicable to all viable (technically as well as economically) projects in rural as well as urban areas, under Micro enterprises sector. The maximum cost of the project admissible under manufacturing sector is Rs.25 lakhs and business/services sector is RS.10 lakhs.

Only one person from family is eligible for obtaining financial assistance under the scheme. Assistance under the Scheme is available only for new projects The assistance under the scheme will not be available to activities indicated in the negative list under the scheme.

Eligible Entrepreneurs / Borrowers for Prime Minister’s Employment Generation Programme (PMEGP)

  • Any individual, above 18 years of age.
  • The beneficiaries should have passed at least VIII standard, for setting up of project costing above Rs.10 lacs in the Manufacturing Sector and above Rs. 5 lacs in the business /Service Sector
  • Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme).
  • Institutions registered under Societies Registration Act,1860
  • Production Co-operative Societies
  • Charitable Trusts.

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 under any other scheme of Government of India or State Government are not eligible.

The beneficiaries will be identified & selected at the district level by a Task Force consisting of representatives from KVIC/State KVIB/ State DICs and Banks and headed by the District Magistrate / Deputy Commissioner / Collector concerned.

Security for Prime Minister’s Employment Generation Programme (PMEGP)

  • Assets created out of the bank’s finance.
  • Personal guarantee of the proprietor / promoter.
  • No collateral security up to Rs. 5 lakhs.
  • Eligible units will be covered under Credit Guarantee Fund scheme for Micro & small Enterprises – CGMSE. (excluding Margin Money / subsidy component)

 

 

Features

All loans are not created equal, Loans has become a great option for people to use.

Faster Loan

Cochin Financial Services helps you to get the loan faster than any other consultants! Starting from document prepartion, our main motto is to get you the money!

Choose amount

All charges are communicated up front in writing along with the loan quotation, and let us know how much money you want and we set strategy accordingly.

Enjoy the best rates

Our PMEGP loan rates and charges are very attractive. We always get you loan for the best interest rates in the market. Its upto us to get you a hassle free loan.

Decide your tenure

As our PMEGP loan rates and charges are very attractive, we help the clients to workout on tenure which never become a burden for them. We works for you.

 

Loan Eligibility

  • Individuals with age of 18 years or more
  • Passing standard VIII is required for a project above Rs 5 lakh in the service sector and above Rs 10 lakh in the manufacturing sector
  • Institutions registered under Societies Registration Act- 1860
  • Production based co-operative societies
  • Self-help groups and charitable trust

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.

 

How will your bank decide your home loan eligibility?

Your bank will assess your repayment capacity while deciding the home loan eligibility. Repayment capacity is based on your monthly disposable / surplus income, (which in turn is based on factors such as total monthly income / surplus less monthly expenses) and other factors like spouse’s income, assets, liabilities, stability of income etc.

The main concern of the bank is to make sure that you comfortably repay the loan on time and ensure end use. The higher the monthly disposable income, higher will be the amount you will be eligible for loan. Typically a bank assumes that about 55-60 % of your monthly disposable / surplus income is available for repayment of loan. However, some banks calculate the income available for EMI payments based on an individual’s gross income and not on his disposable income.

The amount of the loan depends on the tenure of the loan and the rate of interest also as these variables determine your monthly outgo / outflow which in turn depends on your disposable income.

What is an EMI?

You repay the loan in Equated Monthly Installments (EMIs) comprising both principal and interest. Repayment by way of EMI starts from the month following the month in which you take full disbursement.

How does tenure affect cost of loan?

The longer the tenure of the loan, the lesser will be your monthly EMI outflow. Shorter tenures mean greater EMI burden, but your loan is repaid faster. If you have a short-term cash flow mismatch, your bank may increase the tenure of the loan, and your EMI burden comes down. But longer tenures mean payment of larger interest towards the loan and make it more expensive.

Can you repay your loan ahead of schedule? Is pre-payment of loan allowed?

Yes, most banks allow you to repay the loan ahead of schedule by making lump sum payments. However, many banks charge early repayment penalties up to 2-3% of the principal amount outstanding.

Prepayment penalty may vary according to the reasons and source of funds – if you obtain a loan from another bank for pre-payment the charges are usually higher than when you pay from your own sources. However, you may credit more than your EMI amount into your loan account on a periodic basis and bring down your interest burden as and when funds are available with you.

Most banks do not charge a pre-payment penalty if you deposit more than your EMI payable on a periodic basis. Please check such stipulations while availing the loan. cfc is the Top No1business loan in Kerala | Kochi | 2023

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