PMEGP Loan Scheme – Prime Minister Employment Generation Program for up to 35% Subsidy on Loan

PMEGP Loan SchemePrime Minister Employment Generation Program – The PM’s Employment Generation Programme (PMEGP) is a credit-linked subsidy programme introduced by the Ministry of MSME to create jobs in both rural and urban areas. The Government of India grants subsidies up to 35% on the overall project cost through the PMEGP Plan. For service businesses, the project cost is covered up to Rs. 10 lakh, and for manufacturing units, it is covered up to Rs. 25 lakh.

The Prime Minister’s Rozgar Yojana and the Rural Employment Generation Programme were merged into the PMEGP to combine two previous government initiatives with comparable goals and rewards. The main goal of these two initiatives, as well as the PMEGP plan, is to give much-needed financial assistance to Indian entrepreneurs in the rural and urban areas who want to start their own firms.

PMEGP Loan Scheme
PMEGP Loan Scheme

Interest rates under the PMEGP Scheme

The interest rate and subsidy granted by various financial institutions under the PMEGP programme will differ from bank to bank and will be determined by the applicant’s profile, creditworthiness, financial stability, repayment ability, business duration, cost invested, and total project cost.

Various qualifying financial institutions, including SBI, Bank of Baroda, Canara Bank, Bank of India, and other private and public sector banks, can provide loans under the PMEGP.

Features of Prime Minister’s Employment Generation Program’s goals (PMEGP)

  • This scheme was started to create jobs in India’s rural and urban areas by launching new self-employment micro-enterprises or projects.
  • To provide a common ground for traditional artisans and unemployed adolescents in rural and urban areas to come together and generate self-employment opportunities.
  • To take steps to dissuade rural people from migrating to cities in search of work by providing them with stable and long-term employment. This is especially true for traditional and future craftspeople, as well as unemployed adolescents in rural and urban areas who work traditionally or seasonally but are unemployed the remainder of the year.
  • Increase the income-earning potential of artisans and the rate of employment growth in rural and urban areas.

Eligibility for PMEGP

The PMEGP initiative aspires to significantly improve the country’s employment and entrepreneurship situation. As a result, the PMEGP Loans have certain eligibility requirements for aspiring entrepreneurs or businesses who may be qualified for this advantageous opportunity. The following is a thorough list of individual and organizational characteristics that determine PMEGP Loan Eligibility.

  • If the recipient is an individual, he or she must be over the age of 18.
  • Individuals seeking a PMEGP loan for a manufacturing project costing more than Rs. 10 lakhs must have completed and passed at least Class 8. For projects costing more than Rs. 5 lakhs in the commercial or service sector, the same financing criteria apply.
  • PMEGP financing is also available to self-help organizations. This, however, is reliant on the group not having received any benefits under any other plan.
  • PMEGP Loans are available to societies that are registered under the Societies Registration Act of 1860.
  • Cooperative Societies that are involved in the manufacturing of goods.
  • Charitable trusts

How to Apply Online for a PMEGP Loan 

After you’ve double-checked your eligibility and gathered all of the required paperwork, the only thing left to do is fill out the application for the PMEGP loan. The following are the easy procedures to completing a PMEGP online application:

Step 1: Begin by visiting the PMEGP scheme’s official E-portal page on the KVIC website online.

Step 2: Now click on PMEGP Option and then on the next page click on “PMEGP Portal” Option. 

KVIC Portal for Sarkari Yojana
KVIC Portal for Sarkari Yojana

Step 3: You will be taken to “PMEGP Portal”, here you can choose the appropriate option out of 6 options. 

PMEGP Loan Portal Application
PMEGP Loan Portal Application

Step 4: Now You will have to fill out the application form with all necessary information. 

PMEGP New Unit Registration Form
PMEGP New Unit Registration Form

Step 5: You have to fill in all the information correctly according to the relevant documents. 

Step 6: When you’re finished, scroll down to the bottom of the page and select the ‘Save Applicant Data’ button.

Step 7: The final step will need you to upload and submit the required documents.

All application-related information will be sent to the address you specify. Following that, the PMEGP loan that applies to you will be processed.

How to Apply for a PMEGP Loan through Offline

  1. As shown in the above procedure you have to visit the official PMEGP Portal
  2. Complete the application form with the relevant information.
  3. Save the application as a draft after you’ve completed all of the fields.
  4. Download and print the application form.
  5. Take the application form printout to the local bank.
  6. Complete all necessary formalities with the respective bank.

Applicants can use the PMEGP e-portal to apply for PMEGP registration online by filling out and submitting the application form at

The PMEGP loan helpline number is 1800-3000-0034, and applicants can obtain state-specific contact information by visiting the official website by clicking here.

Documents Required for PMEPG

After determining whether or not an individual or organization fits the eligibility criteria outlined above, they can proceed to the next step, which is gathering the required documentation for the PMEGP loan application procedure. Before applying for a PMEGP loan, you will need to gather the following documents:

  • Application form with passport-sized photographs
  • Identity & Address Proofs
  • PAN card, Aadhaar card & VIII Pass certificate
  • Project Report
  • Special category certificate, if required
  • Certificate of Entrepreneur Development Programme (EDP)
  • Caste Certificate for SC/ST/OBC/Minority/Ex-Servicemen/PHC
  • Certificate of academic and technical courses, if any.
  • Other documents required by the bank or NBFC

How To Use The Pmegp E-Tracking System To Check The Status Of Your Loan Application

  • Visit the PMEGP’s official website go here:
  • Select ‘Login Form for Registered Applicant’ from the drop-down menu to launch a new page with login and password fields.
  • Click Login after entering your ID and password.
  • Finally, click on ‘View Status’ to see the status of your PMEGP loan application.

FAQs for Pradhan Mantri’s Employment Generation Programme

Q. What is the PMEGP scheme, and how does it work?

Ans. The Prime Minister Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme endorsed by the Indian government. Beneficiaries might get a government subsidy of 15-35 percent of the project cost under this programme.

Q. How long does it take for a PMEGP loan to be approved?

Ans. Within 60 days, the concerned bank will evaluate and sanction the project proposal. Following the disbursement of the loan, the Bank shall file a claim for Margin Money Subsidy (MMS) in accordance with the method used for PMEGP units.

Q. What exactly is the PMEGP e Portal?

Ans. Beneficiaries can obtain project reports, industrial documentaries, expert episodes, guidance for statutory registration, and various government grants, incentives, and other related information for a one-year period in addition to Online EDP training.

Q. What is the maximum project cost that the PMEGP allows?

Ans. For a manufacturing unit, the maximum loan limit is Rs. 25 lakh, and for a service unit, it is Rs. 10 lakh.

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