Starting a business can be challenging, especially when financial support is limited. The Prime Minister Employment Generation Programme (PMEGP) aims to bridge this gap by offering government-subsidized loans to individuals looking to set up small or micro-enterprises. Managed by the Ministry of Micro, Small and Medium Enterprises (MSME), the scheme provides financial assistance to eligible entrepreneurs in both urban and rural areas.
What is PMEGP Loan?
The PMEGP Loan Scheme, introduced by the MSME Ministry, is a business loan program aimed at generating employment through the establishment of micro and small enterprises. Operated by the Khadi and Village Industries Commission (KVIC), the scheme provides loans up to ₹50 lakh for manufacturing units and ₹20 lakh for service sectors. The program includes a subsidy component to reduce repayment burdens.
Key Features of PMEGP Loan Scheme
- Eligibility for All Economic Backgrounds: No income proof is required to apply.
- High Subsidy Rates: 15%-35% of the project cost is subsidized, depending on location and applicant category.
- Wide Accessibility: Loans are available through 27 Public Sector Banks, Regional Rural Banks (RRBs), Co-operative Banks, and private commercial banks.
- Support for Special Categories: SC/ST, women, differently-abled, and ex-servicemen receive higher subsidies (35% in rural areas and 25% in urban areas).
Eligibility Criteria
To apply for a PMEGP loan, applicants must meet these criteria:
- Age Limit: Must be above 18 years.
- New Business Requirement: Only new ventures are eligible; existing businesses cannot apply.
- Educational Qualification:
- No minimum education requirement for loans up to ₹10 lakh (manufacturing) or ₹5 lakh (service sector).
- For higher loan amounts, a minimum of 8th standard pass is required.
- Type of Beneficiaries:
- Individuals, Self-Help Groups (SHGs), Co-operative Societies, and Charitable Trusts.
- Units already availing benefits under PMRY, REGP, or similar schemes are ineligible.
Benefits of PMEGP Loan
- Financial Assistance: Loans up to ₹50 lakh for manufacturing and ₹20 lakh for service sectors.
- Subsidy Rates:
- 15%-35% depending on location and category.
- Job Creation: Supports entrepreneurs in establishing ventures that create employment.
- Low-Interest Rates: Loans are offered at competitive rates due to government subsidies.
Documents Required
Applicants need the following documents to apply for the PMEGP loan:
- Two passport-sized photographs
- Aadhaar Card
- PAN Card
- Project Report
- Caste or Special Category Certificate (if applicable)
- Education/Skill Development Certificate
- Authorization Letter
- Residential Proof
- Bank Account Details
How to Apply Online for PMEGP Loan 2025
Follow these steps to register online for the PMEGP Loan Scheme:
- Visit the Official Portal:
Navigate to kviconline.gov.in. - Click “Application for New Unit”:
On the homepage, choose this option to begin your application. - Fill Out the Form:
- Provide details like Aadhaar number, EID, and personal information.
- Agree to the declaration and click “Save Application Data.”
- Upload Documents:
Submit scanned copies of the required documents. - Complete the Scorecard:
Fill out the evaluation scorecard as per the portal’s instructions. - Submit and Note Credentials:
- Complete the application and submit it.
- Save the application ID and password sent to your registered mobile number.
- Download and Print:
Keep a copy of the application form for future reference.
Offline Application Process
For offline applications:
- Visit kviconline.gov.in and download the application form in your regional language.
- Print and fill out the form.
- Attach the required documents and submit the form at the nearest KVIC office or District Industries Center (DIC).
- Note your application ID and password for future reference.
PMEGP Login Process
- Go to the PMEGP Login Portal.
- Click on the Registered Applicant (Login) option.
- Enter your User ID and password.
- Access your dashboard to track your application status or manage your account.
How to Check PMEGP Loan Application Status
- Log in to the PMEGP portal using your credentials.
- Select the “Application Status” option.
- Enter your application number to view your status.
Contact Information and Helpline
For queries regarding the PMEGP Loan Scheme, contact:
- Helpline Numbers:
- 07526000333
- 07526000555
- Email Support:
helpdesk@udyami.org.in - Official Website:
kviconline.gov.in
FAQs
What is the purpose of the PMEGP Loan Scheme?
The scheme provides financial assistance to individuals for setting up new businesses in manufacturing and service sectors.
Who is eligible for PMEGP loans?
Indian citizens above 18 years of age, planning to start a new business, are eligible.
What is the maximum loan amount?
Up to ₹50 lakh for manufacturing and ₹20 lakh for service sectors.
Are subsidies provided?
Yes, subsidies range from 15%-35%, depending on location and applicant category.
What documents are needed for the application?
Key documents include Aadhaar, PAN, project report, education certificates, and caste certificates (if applicable).
Can I apply offline?
Yes, download the form from the portal, fill it out, and submit it to the nearest KVIC office.
How do I check my application status?
Log in to the PMEGP portal and use your application number to track your status.
What financial institutions provide PMEGP loans?
Loans are available through Public Sector Banks, Regional Rural Banks, Co-operative Banks, and private commercial banks.
Click here to know more.
A passionate content writer specializing in creating engaging, SEO-optimized content. With expertise in blogs, web copy, and storytelling, I craft words that connect with audiences and deliver results.