Question

What are the main PMEGP loan details?

Answer 1

The details are as follows –

• Banks sanction funding up to 90% to 95% of the project cost.

• On this, the Government provides 15% to 35% as margin money or PMEGP subsidy.

• The remaining 60% to 75% is provided by the bank as a term loan.

• Interest rates are regular, from 11% to 12%.

• Repayment tenor is 3 to 7 years after a preliminary moratorium