PMEGP Loan Scheme: Explore eligibility, document requirements, and subsidies. Apply online now to get financial support for your business.
PMEGP Loan Scheme: Get the complete 2025 guide to the PMEGP loan scheme. Learn about eligibility, documents, the online application process, subsidy rates up to 35%, and how to get a loan of up to ₹50 lakh for your new business in India.
For aspiring entrepreneurs across India, securing financial support is the first major step. The Prime Minister’s Employment Generation Programme (PMEGP) is a cornerstone of government support, designed to empower first-time business owners by fostering self-employment and creating jobs.
What is PMEGP?
The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME). It is not a direct cash grant. Instead, the government provides a substantial subsidy, known as “Margin Money,” on a loan you take from a participating bank. This subsidy significantly reduces your loan burden. The scheme has been approved for continuation until 2025-26, with the Khadi and Village Industries Commission (KVIC) as the national implementing agency.
Objectives of the PMEGP Scheme
The scheme’s goals are rooted in socio-economic development:
- Generate Employment: Create sustainable jobs for unemployed youth and artisans in both rural and urban areas.
- Prevent Urban Migration: Provide viable self-employment opportunities locally to reduce migration from rural to urban areas.
- Increase Earning Capacity: Enhance the wage-earning potential of artisans and workers.
- Boost Credit Flow: Encourage banks to lend to the micro-enterprise sector.
Benefits of the Scheme
- Significant Government Subsidy: Receive a Margin Money subsidy of 15% to 35% on your project cost.
- Low Personal Investment: Your contribution is only 5% for special categories and 10% for the general category.
- Collateral-Free Loans: No collateral or third-party guarantee is required for loans up to ₹10 lakh.
- Wide Business Coverage: Supports a vast array of new businesses in the manufacturing and service sectors.
- Inclusive for All: Offers special benefits and higher subsidies for women, SC/ST/OBC, minorities, ex-servicemen, and other special categories.
PMEGP Scheme Overview
Understanding the PMEGP ecosystem is key to a successful application.
PMEGP Project List
PMEGP supports a broad spectrum of viable micro-enterprises. The KVIC portal provides model project profiles for guidance.
- Agro-Based Food Processing: Bakery units, dal mills, fruit processing.
- Manufacturing: Readymade garments, furniture making, fly ash bricks.
- Service & IT: Automobile repair, cyber cafes, beauty parlours.
However, a Negative List of Activities are not eligible, including:
- Businesses involved in meat processing or serving liquor.
- Manufacturing of thin polythene bags or intoxicants.
- Most forms of crop cultivation (though value-added activities like food processing are permitted).
PMEGP Scheme List 2025 PDF Download
For detailed information, always refer to official government documents available on the KVIC and PMEGP e-Portal websites.
| Document Name | Description | Portal/Link |
| PMEGP Scheme Guidelines | The official, comprehensive rulebook. | KVIC & Ministry of MSME Websites |
| Guidelines for 2nd Loan | Rules for existing units seeking expansion. | PMEGP e-Portal |
| Model Project Reports | Sample reports to guide applicants. | KVIC Project Profiles Portal |
| Online Application Portal | The official portal for all applications. | PMEGP e-Portal |
PMEGP Guidelines
The scheme is implemented through a network of agencies. When applying online, you must choose one:
- KVIC (Khadi and Village Industries Commission): The national nodal agency.
- State KVIBs (Khadi and Village Industries Boards): State-level implementation.
- DICs (District Industries Centres): District-level implementation for both urban and rural areas.
- Coir Board: For projects related to coir products.
PMEGP Bank List
A wide network of financial institutions participates in the scheme.
- Public Sector Banks: State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda, etc.
- Private Sector Banks: HDFC Bank, ICICI Bank, Axis Bank, etc.
- Regional Rural Banks (RRBs)
- Co-operative Banks
PMEGP Loan Details
Here are the critical financial numbers every applicant needs to know.
PMEGP Loan Details
| Parameter | Details |
| Max. Project Cost (Manufacturing) | ₹50 Lakh |
| Max. Project Cost (Service/Business) | ₹20 Lakh |
| Beneficiary’s Contribution | 5% (Special Category), 10% (General Category) |
| Government Subsidy Rate | 15% to 35% of the project cost |
| Interest Rate | Regular bank rates apply (typically 11% to 12% p.a.) |
| Repayment Tenure | 3 to 7 years (after an initial moratorium period) |
| Collateral / Security | Not required for loans up to ₹10 Lakh |
PMEGP Maximum Limit
- Manufacturing Sector: ₹50 lakh
- Business/Service Sector: ₹20 lakh
This is the total project cost. The loan amount is calculated after deducting your contribution and the government subsidy.
PMEGP 2nd Loan
Existing, successful PMEGP or MUDRA units can apply for a second loan for expansion.
- Eligibility: The unit must be profitable for the last three years and the first loan fully repaid.
- New Limits: Up to ₹1 crore for manufacturing and ₹25 lakh for service/trading.
- Subsidy: A flat subsidy of 15% (20% for NER and Hilly States).
PMEGP Commercial Vehicle Loan
Generally, rural transport is on the negative list. However, transport activities for tourism or public connectivity are permitted in specific regions like the North-Eastern Region (NER), hilly areas, and island territories.
PMEGP Repayment Period
The repayment tenure is 3 to 7 years. Banks provide an initial moratorium period of up to 6 months, during which no EMI payments are required.
PMEGP Loan Calculator
The official KVIC website has an EMI calculator to help you plan your finances. You need to enter the loan amount, interest rate, and tenure.
PMEGP Loan Eligibility Criteria
Meeting these criteria is the first step in your PMEGP journey.
PMEGP Loan Age Limit
- The applicant must be an individual above 18 years of age.
- There is no upper age limit.
PMEGP Education Qualification
- For projects costing above ₹10 lakh (manufacturing) or above ₹5 lakh (service), the applicant must have passed at least the 8th standard.
- For projects below these costs, there is no minimum educational qualification.
PMEGP CIBIL Score Requirement
There is no mandatory minimum CIBIL score. PMEGP uses a Scorecard Model to evaluate applications based on the project’s viability. Applications scoring above a minimum threshold (e.g., 60 out of 100) are recommended to banks.
PMEGP Beneficiary Criteria
| Eligible Applicants | Who is Not Eligible |
| Individuals above 18 years. | Existing businesses that have already received a government subsidy. |
| Self-Help Groups (SHGs). | More than one person from the same family (self and spouse). |
| Registered Societies & Co-operative Societies. | Projects without any Capital Expenditure. |
| Charitable Trusts. |
PMEGP Loan Documentation
A complete set of documents is critical for a smooth online application.
PMEGP Loan Document Requirements
The Project Report is the most crucial document. It’s a detailed business plan outlining your idea, financials, and market strategy. All scanned documents for online submission should not exceed 1 MB.
Required Documents Checklist
- Passport Size Photo
- Aadhaar Card (Mandatory)
- PAN Card
- Project Report (Summary or Detailed)
- Highest Educational Qualification Certificate (if applicable)
- Caste/Special Category Certificate (if applicable)
- Rural Area Certificate (if applicable)
- EDP Training Certificate (if completed)
PMEGP Subsidy
The subsidy, or Margin Money, is the scheme’s most compelling feature.
How PMEGP Subsidy Works
- Loan Sanction: The bank sanctions your loan.
- Subsidy Claim: The bank claims the subsidy from KVIC on your behalf.
- Term Deposit (TDR): The subsidy is held in a 3-year lock-in Term Deposit Receipt (TDR) in your name. You do not pay interest on the loan amount equivalent to the subsidy during this period.
- Final Adjustment: After 3 years, if the business is running successfully, the TDR amount is adjusted against your outstanding loan, permanently reducing the principal.
Subsidy Percentage by Category
| Beneficiary Category | Location | Your Contribution | Government Subsidy |
| General Category | Urban | 10% | 15% |
| General Category | Rural | 10% | 25% |
| Special Category* | Urban | 5% | 25% |
| Special Category* | Rural | 5% | 35% |
*Special Category includes SC, ST, OBC, Minorities, Women, Ex-Servicemen, Transgenders, Differently-abled, and applicants from NER, Hill, and Border areas.
Subsidy Disbursement Process
The entire process is online. The bank claims the subsidy after loan disbursement, KVIC transfers it, and the bank creates the TDR. You are kept informed via SMS and email alerts.
How to Apply for PMEGP Loan
The application process is entirely online, making it accessible nationwide.
Step-by-Step Application Process
- Ideation & Project Report: Finalize an eligible business idea and prepare a detailed project report.
- Online Application: Fill and submit the application on the official PMEGP e-portal: www.kviconline.gov.in.
- Agency Scrutiny: Your chosen agency (DIC, KVIC, etc.) scrutinizes the proposal.
- DLTFC Recommendation: The District Level Task Force Committee (DLTFC) evaluates the project and recommends it to banks.
- Bank Sanction: The bank appraises the project and makes the final loan sanction decision.
- EDP Training: After loan sanction, you must complete a mandatory (and free) Entrepreneurship Development Programme (EDP) training.
- Loan Disbursement: The bank releases the loan after you submit the EDP certificate and your contribution.
How to Apply for PMEGP Loan Online
- Go to the official PMEGP e-portal.
- Click “Apply” under “Application For New Unit.”
- Fill in the online form with your Aadhaar, personal, and project details.
- Upload clear, scanned copies of all required documents.
- Click “Save Applicant Data” and then “Final Submission.”
- An Application ID and password will be sent to your registered mobile number for tracking.
PMEGP Loan Apply Online Last Date
There is no national last date for submitting applications; the portal is open year-round. However, since district agencies work on annual targets, applying earlier in the financial year (April-March) is advantageous.
PMEGP Support & Contact
For queries or assistance, use the dedicated support channels.
PMEGP Contact Number
- For Online EDP Training Helpdesk: 07526000333 / 07526000555
- Email: helpdesk@udyami.org.in
Regional Offices and Support
The most reliable way to get local contact information is through the official KVIC portal. The PMEGP HELPDESK CONTACT DETAIL page provides an up-to-date, state-wise list of phone numbers and email IDs.
FAQs and Additional Resources
Common Questions Answered
- Q: Is collateral required for a PMEGP loan?
- A: No, for loans up to ₹10 lakh, no collateral is required. Loans above this can be covered under the CGTMSE scheme.
- Q: Can I include the cost of land in my project?
- A: No, the cost of land cannot be included. However, the cost of constructing a workshed or a leased workshop can be.
- Q: Is EDP training mandatory?
- A: Yes, completing the EDP training is compulsory to claim the subsidy. It is typically 5-10 days long and provided free of cost after loan sanction.
- Q: Can I apply for PMEGP if I have an existing business?
- A: No, the primary PMEGP loan is strictly for new projects.
- Q: What is the interest rate for a PMEGP loan?
- A: Normal bank interest rates apply (around 11-12% p.a.). The financial benefit comes from the government subsidy.
Downloadable Guides and PDFs
- Model Project Reports: The KVIC portal offers a wide range of downloadable reports to help you prepare your own.
- Application Forms: The PMEGP portal provides downloadable forms in various languages for offline reference.
Official PMEGP Portal Links
| Resource | Official Link |
| PMEGP Main Portal (e-Portal) | https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp |
| Online Application for New Unit | https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp |
| Online Application for 2nd Loan | https://www.kviconline.gov.in/pmegpeportal/pmegpIILOAN/index.jsp |
| Track Application Status (Login) | https://www.kviconline.gov.in/pmegpeportal/jsp/applicantLogin.jsp |
| Online EDP Training Portal (Udyami) | https://www.udyami.org.in |
| EMI Calculator | https://www.kviconline.gov.in/pmegpeportal/jsp/emiCalculator.jsp |
| State-wise Helpdesk Contacts | https://www.kviconline.gov.in/pmegpeportal/dashboard/helpDeskNo.jsp |
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