In today’s era of entrepreneurship, access to affordable finance plays a critical role for aspiring entrepreneurs and startups. The Prime Minister’s Employment Generation Programme (PMEGP), implemented by the Khadi and Village Industries Commission (KVIC), is a flagship initiative by the Government of India aimed at promoting self-employment and micro-enterprises. This scheme has emerged as a game-changer for first-generation entrepreneurs, providing financial support to turn innovative ideas into successful businesses.
Whether you’re planning to start a manufacturing unit, a service-based enterprise, or an agro-industry, the PMEGP loan can be your stepping stone to success.
What is the PMEGP Scheme?
The PMEGP scheme is a credit-linked subsidy program launched by the Ministry of Micro, Small, and Medium Enterprises (MSME) to generate sustainable employment opportunities in rural and urban areas. It is designed to support first-generation entrepreneurs and youth who have the skills but lack the capital to start their ventures.
Under the scheme:
- The government provides a subsidy of 15% to 35% on the project cost.
- The balance amount is financed as a bank loan under the PMEGP loan process.
Key Benefits of PMEGP Loan
✅ Encourages self-reliance among youth and rural population.
✅ Provides a subsidy component, reducing financial burden on entrepreneurs.
✅ Applicable for manufacturing and service sectors, covering a wide range of businesses.
✅ Supports employment generation, particularly in non-farm sectors.
Eligibility Criteria for PMEGP Loan
To avail the PMEGP loan, you must meet the following eligibility requirements:
- Age: Minimum 18 years.
- Educational Qualification: Minimum 8th standard pass for projects above ₹10 lakh (manufacturing) and ₹5 lakh (service).
- Entrepreneurs: Only first-generation entrepreneurs are eligible.
- Existing units: Not eligible under the scheme.
PMEGP Loan Process
Applying for a PMEGP loan is simple and fully digital through the PMEGP portal. Follow these steps:
Step 1: Online Registration
Visit the official PMEGP portal: https://www.kviconline.gov.in/pmegp/
Step 2: Fill Application Form
Choose whether you are an individual entrepreneur or an institution/cooperative. Fill in personal details, project details, and upload necessary documents.
Step 3: Project Report Submission
Attach your business/project report while applying online.
Step 4: Bank Processing
The application is forwarded to the bank for sanctioning the PMEGP loan.
Step 5: Subsidy Approval
After loan approval, subsidy is credited to your account post successful inspection.
Loan Amount and Subsidy Structure
- Manufacturing Sector: Up to ₹25 lakh.
- Service Sector: Up to ₹10 lakh.
- Government Subsidy:
- 15% for urban areas.
- 25% for rural areas.
- 35% for special categories (SC/ST, women, ex-servicemen, etc.).
Second Loan under PMEGP
The Government has introduced PMEGP 2nd Loan Scheme to help existing PMEGP units expand their business.
Subsidy: 15% to 20% on the project cost.
Eligibility: Units that have successfully run their business for 3 years under PMEGP.
Loan Amount: Up to ₹1 crore for manufacturing and ₹25 lakh for service.
- Subsidy: 15% to 20% on the project cost.
Official Guidance and PMEGP Portal
For detailed guidelines, eligibility, and online application, visit:
👉 Official Website: https://www.kviconline.gov.in/pmegp/
The portal provides:
✔ Online application process.
✔ E-tracking of application status.
✔ Detailed scheme guidelines and FAQs.
Why PMEGP is a Catalyst for Young Entrepreneurs
With the rise of startups in India, financial support is the biggest hurdle for first-generation entrepreneurs. The PMEGP scheme bridges this gap by providing credit-linked subsidy, ensuring that innovative minds don’t give up due to lack of funds. It promotes Atmanirbhar Bharat, empowering youth to become job creators rather than job seekers.
Final Thoughts
The PMEGP loan scheme is more than just a government program—it’s a launchpad for entrepreneurship. If you’re planning to start your own venture, leverage the PMEGP portal and take advantage of this opportunity to turn your dreams into reality.
✅ Apply now at: http://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp
Q1. What is the PMEGP scheme?
The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme by the Government of India to promote self-employment through micro-enterprises in rural and urban areas.
Q2. Who is eligible for the PMEGP loan?
Any Indian citizen above 18 years with minimum 8th standard education (for higher-value projects) and a viable business idea can apply. Only first-generation entrepreneurs are eligible.
Q3. How much loan can I get under PMEGP?
- Manufacturing: Up to ₹25 lakh.
- Service Sector: Up to ₹10 lakh.
Government provides 15%–35% subsidy based on category and location.
Q4. How do I apply for a PMEGP loan online?
You can apply through the official PMEGP portal: https://www.kviconline.gov.in/pmegp/. Fill in your details, upload documents, and submit your project report.
Q5. Is there a second loan option under PMEGP?
Yes, existing PMEGP units can apply for a second loan of up to ₹1 crore for expansion. This also includes a subsidy of 15%–20%.
Know more about the PMEGP second loam option :second loan for upgradation of PMEGP/MUDRA loan
