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Frequently Asked Questions


PMFDP, which stands for Primary MSMEs Formation & Development Programme., is a financial Literacy institution set up by ESSC of India for development and refinancing of micro units enterprises. It was support to AatmaNirbhar Bharat. The purpose of PMFDP is to provide eEDP on How to start your own Business & Raise Finance to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.

The biggest bottleneck to the growth of entrepreneurship in the Non–Corporate Small Business Sector (NCSBS) is lack of financial support to this sector. More than 90% of this sector does not have access to formal sources of finance. ESSC is setting up PMFDP through a statutory enactment for catering to the needs of the NCSBS segment or the informal sector for bringing them in the mainstream.

PMFDP Will help all the unemployed who want to set up an enterprise or have established, they need the help of Finance. And the documents required for them, guidelines and how to start a business And how to take that loan, Related education will also be provided.

PMFDP gives you complete information about how to start a business and how to get a loan for it And does help you from time to time, So that you can start your business easily or grow your business.

As stated earlier. How to start a business in every field. How he works to grow it & That is, you must fall under it.

There is no subsidy for the loan given under PMFDP. However, if the loan proposal is linked to some Government scheme, wherein the Govt. if providing capital subsidy, it will be eligible under PMFDP also.

The interest rates are deregulated and the banks have been advised to charge reasonable interest rates within the overall RBI guidelines.

Any individual including women, proprietary concern, partnership firm, private limited company or any other entity are eligible applicant under PMFDP, whose loan requirement is up to 25 lacs.

No training will be nominal charged but documents and advice like project file and registration will be given free of cost by the council.

By training in PMFDP, you get complete information about how the loan is taken, how the business is started, what are the documents required to take a loan, but the loan is based on your credit.

If you want to do business or are doing business and you are a legal person then you are more likely to get a loan.

It is a platform to help in setting up or developing an enterprise, through this you will be given certificate along with free project files and necessary documents and guidelines.

The main objective of PMFDP is That people who are from outside And unemployed They want to do their business So training them and preparing them so that they can establish their own business And employ more and more people. And those who are already enterprises can increase their employment so that more and more people get employment. There is a target to establish at least 10500 new industries in per district.

Rs.25.00 lakhs for manufacturing, Services & Trading Unit.

Individual Entrepreneurs, Institutions, Co-operative Societies, Self Help Groups, Trusts.

Public Sector Banks ,Regional Rural Banks(RRB), Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee.

Beneficiary can submit his/her application/Project online on PMFDP website www.pmfdp.org or www.rojgarbharat.org & ROJGARBHARAT APP.

Any area classified as Village as per the revenue record of the State, irrespective of the population. It also includes an area even if classified as town provided its population does not exceed 20000.

Any adult beneficiary above 18-55 years is eligible for PMFDP.

Electronic Entrepreneurship Development Programme on How to start own your Business & Raise finance. Training of EDP is highly beneficial for the enterprise, so it is necessary.

Yes, new or old unit valid for apply.

Write down the initial idea for a business you need to set up start, operate, and expand it to cover all possibilities. The best way to start your planning process is to determine “what it all takes to make a good beginning”. It is important to answer it before starting a business. One has to do an objective appraisal of the personal skills, abilities, and talents, as well as an assessment of your own strengths, weaknesses, and personal situation, with some research into the scope of the proposed business leading to posing of the following key questions to yourself, with due seriousness.

  • How well do I plan and organize?
  • Am I willing to take risks?
  • Do I get along well with others?
  • Can I make good decisions?
  • Do I have the physical and emotional strength to run a business?
  • Can I maintain my motivation?
  • Do I enjoy confidence of my co-workers?
  • Do I like to work alone?
  • Can I work alone in crisis hours?
  • Can I blend the business life with family, social life?

Now your task is to decide what kind of business you want to start, because you only can decide which business is best suited for you. Next comes to explore potential markets for your product / service, and ways to use your skills and interests in the business. Next comes to explore potential markets for your product / service, and ways to use your skills and interests in the business. Check with potential customers to find if they are willing to pay for the product / service, at the price / cost offered by you. It enhances chances of your success, when you match a product / service with available or potential markets.

Now, the right step for you is to have a do-able business idea, and choosing a name and location for the business; registering it with the proper authorities; obtaining necessary licenses and permits; and developing production schedules, marketing and pricing plans. Take your time and plan carefully. Do not rush the process or skip any of the important steps / tasks, because business has to be sustainable in long run.

You can start as a sole – proprietorships firm, the simplest of all types. Here the business income is treated as personal income for tax purposes, but a significant disadvantage is that you as the owner, assumes personal liability for the actions of the business, whereas a one person / director company has safeguards from such liability. It gives you many additional advantages as a legal entity making it simpler to contract on behalf of your business. A digital signature is also essential & helps in making online business transactions easier and for filing of various statutory compliances of taxes etc. Having an Aadhar no. can be much better for you. In case of need, you can obtain expert legal and accounting advices to help determine the best legal framework for your business.

Acquiring permits and licenses anywhere involves certain issues: named below:-

  1. Things to do before registration
    A Regd. Name and Place of business,
    Personal and Residential Identification issues
    Licensing and Statutory Permits regulations.
  1. Things to do after registration
    Allotment of land in industrial estates or fixing a commercial site
    Sales and Service taxes registrations.
    Industry type / Business Sector Identification numbers.
    Licensing and permitting regulations vary with the type of business and are subject to the State / Central govt. rules where the business is located. While licensing requirements of some businesses is easy, in case of some others these are tightly controlled..
    Do not just start the business without knowing the necessary rules of permit issue or waiver, or the fees etc., but you cannot run the risk of facing fines, or closure of your business soon after start, because as owner you may face civil and /or criminal penalties.

  1. A business plan is the firm’s résumé and lists its goals and objectives. Develop a business plan as much for yourself as for the partners, investors, and bankers involved with the business.
  2. Business plans have Four distinct uses:
    1. The prospect of its feasibility and success as per marketing plans;
    2. The day to day operating (methodologies) plans for financial needs, production schedules, and marketing goals;
    3. The management tools to secure loans or outside capital borrowed.
    4. The risk mitigation in business due to any future shifts in market behaviour.
  3. In the development of business plans, some of the practicing CA’s / CS’s, and vocational technical training schools or govt certified institutes consultants help can be obtained on payment of fees. Many colleges have business incubators and a Mentor Support network is also in offing under Ministry of Skill Development & Entrepreneurship, Govt of India.

Using your personal funds is the first step in financing of business, as it is an indicator of how serious you are about the business and you are willing to risk your own savings in the proposed business This makes the lender confident of your ability to manage risk including your personal money and it conveys your confidence into investors. Business loans can be obtained from several sources, such as PSU & Private (commercial) banks, finance companies, MFI’s, Venture Capital, PE, and Angel fund, firms, and some insurance companies.