Lok Sabha Question No. 22 (UNSTARRED), answered on 2026-01-29
Subject: Loan Sanctions under PMEGP
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Darshan Singh Choudhary

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 22 TO BE ANSWERED ON 29.01.2026

## LOAN SANCTIONS UNDER PMEGP

## 22. SHRI DARSHAN SINGH CHOUDHARY:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether concrete steps have been taken to address delays occurring in the first two quarters of the year in sanctioning of loans under the Prime Minister's Employment Generation Programme (PMEGP), and if so, the details thereof;
- (b) whether the list of nodal officers has been published on the e-portal to ensure compliance with the Reserve Bank of India's directive of 30 days and if so, the details thereof;
- (c) whether the process of long-term monitoring and physical verification of units established under the  Programme  would  be  strengthened  so  that  failed  units  receive  support  and  successful  units  are provided opportunities for expansion and if so, the details thereof; and
- (d) whether  an  interest  calculator  has  been  installed  on  the  PMEGP  portal  and  whether  a  uniform minimum interest rate has been implemented for all beneficiaries to prevent excess interest recovery and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): Prime Minister's Employment Generation Programme (PMEGP) is a demand driven scheme and the  final  sanction  of  projects  and  sanction  and  release  of  loan  is  done  at  the  level  of  the  concerned financing bank which appraise the projects and take their own credit decision based on the viability of each  project.  As  per  RBI  guidelines  on  Lead  Bank  Scheme,  Bankers'  Committee  meetings  at  Block, District,  and  State  levels  are  held  on  a  regular  basis  to  ensure  effective  coordination,  monitoring  and implementation  of  the  scheme.  Regular  Meetings  by  State  Level  Monitoring  Committees  (SLMC)  and District level Monitoring Committees (DLMC)  are also held to review the performance and implementation of PMEGP in respective States and Districts.
- (b): The details of Nodal Officers have been published on the online dashboard of the PMEGP Portal. Details of the same are as below: https://kviconline.gov.in/pmegpeportal/dashboard/fbNodalBankList.jsp

(c): To facilitate timely adjustment of MM subsidy into the beneficiary's loan account, a mechanism for physical verification of micro-enterprises set up under PMEGP with geo-tagging and working status of the  establishment  is  in  place  and  being  implemented  successfully.  Furthermore,  to  provide  financial assistance  to  support  successful  micro  enterprises  assisted  under  PMEGP,  second loan component  is  in place to provide financial assistance up to Rs.1 crore with subsidy of 15% for all categories (20% for NER and Hill areas) for upgradation of well-performing existing manufacturing units assisted under PMEGP/REGP/MUDRA.

(d): An Interest/EMI Calculator is in place on the PMEGP portal to enhance transparency and enable beneficiaries  to  understand  their  repayment  obligations  before  availing  loans.  The  calculator  allows beneficiary to input the loan amount, applicable annual rate of interest, and loan tenure, and automatically displays the monthly EMI, total interest payable, and total repayment amount.

Reserve Bank of India (RBI) has deregulated interest rates on bank advances. Therefore, interest rates for PMEGP loans are determined by individual banks within the regulatory framework prescribed by RBI. However, RBI has issued directions to all Regulated Entities to ensure transparency, fairness, and adequate disclosure of loan terms, thereby enabling PMEGP beneficiaries to make informed decisions and preventing arbitrary interest recovery.

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