📌 What is the PMEGP Loan?
How to Apply for PMEGP 2025 The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme by the Government of India to promote self-employment and entrepreneurship. It offers up to ₹25 lakhs in financial assistance to set up a new business in manufacturing or service sectors.
👉 It is implemented by the Khadi and Village Industries Commission (KVIC), State KVIC Directorates, DICs, and Coir Board.
🧾 Key Features of the PMEGP Loan Scheme
- 💰 Loan amount: Up to ₹25 lakhs (Manufacturing) and ₹10 lakhs (Service sector)
- 🏦 Subsidy: 15% to 35% subsidy depending on area and category
- 🔄 Repayment tenure: 3 to 7 years
- 🧍♂️ Who can apply: Any Indian citizen aged 18+, including unemployed youth, SC/ST, OBC, women, and ex-servicemen
✅ PMEGP Loan Eligibility Criteria
To be eligible for the PMEGP loan in 2025:
- You must be an Indian citizen aged 18 years or above
- Minimum 8th standard pass for projects above ₹5 lakhs in manufacturing and ₹2 lakhs in services
- Must start a new business (not for existing units)
- Self Help Groups, societies, trusts, and charitable institutions are also eligible
Benefits of PMEGP Loan in 2025
- ✅ Loan up to ₹25 lakh for manufacturing & ₹10 lakh for services
- ✅ Subsidy up to 35% for rural and 25% for urban areas
- ✅ No collateral for loans up to ₹10 lakh
- ✅ Helps youth, SC/ST, OBC, and women start businesses
📂 Documents Required to Apply for PMEGP Loan
Here’s the list of documents you’ll need:
- Aadhaar card and PAN card
- Educational qualification proof
- Project report
- Passport-size photographs
- Caste certificate (if applicable)
- Rural area certificate (if applicable)
- Bank account details
- Consent letter from the bank
🖥️How to Apply for PMEGP Loan Online – Step-by-Step
🟢 Step 1: Visit the PMEGP Portal
Go to the official website: https://www.kviconline.gov.in/pmegp/
🟢 Step 2: Click on “Online Application Form for Individual”
Click “Apply” under the ‘Individual’ category. You’ll be directed to the registration form.
🟢 Step 3: Fill in Personal Details
Enter your name, Aadhaar number, contact info, and bank details.
🟢 Step 4: Upload Documents
Upload your Aadhaar, PAN, photo, educational proof, and project report in PDF format.
🟢 Step 5: Submit and Track Application
After submission, you’ll get an Application ID. You can track it under the “Track Application Status” section.
Pro Tip: Watch tutorials from the MSME Ministry’s official YouTube channel for guidance
Apply here via KVIC Online PMEGP Portal
Check scheme details on MSME Official Website
Refer to PMEGP Guidelines PDF
📈 PMEGP Loan Subsidy Chart (2025)
| Category | Urban Area Subsidy | Rural Area Subsidy |
|---|---|---|
| General Category | 15% | 25% |
| SC/ST/OBC/Minorities | 25% | 35% |
| Women/Ex-servicemen | 25% | 35% |
Note: The margin money (subsidy) is credited after your loan disbursement and utilization.
💼 What Kind of Businesses Are Eligible?
Some example businesses covered under PMEGP:
- Food processing unit (e.g., spice mill, bakery)
- Tailoring shop or boutique
- Mobile repair center
- Furniture manufacturing
- Organic farming
- Beauty salon
- Handicrafts & artisan-based units
- Small manufacturing units (e.g., packaging, garments, handicrafts)
- Local transport and travel businesses
- Detergent and soap-making units
- Cyber cafés, digital studios, computer training centers
Pro Tip: Prepare a strong project report explaining costs, revenue, and employment potential to improve approval chances.
PMEGP project reports are crucial for getting loan approval — banks and KVIC need a clear plan showing feasibility, costs, and employment potential. Below are 3 ready-to-use PMEGP project reports for popular small businesses that qualify under the scheme.
✅ PMEGP Project Report #1: Spice Powder Manufacturing Unit
Project Name: Spice Powder Manufacturing
Sector: Manufacturing
Location: Rural (can be modified for Urban)
Applicant Category: General / OBC / SC / ST / Women
📌 Project Summary:
This unit will process and pack ground spices like turmeric, coriander, cumin, and chili powder. The demand for packaged spices is rising due to hygiene awareness and retail growth.
💰 Total Project Cost:
- Machinery & Equipment: ₹3,00,000
- Working Capital (Raw Materials): ₹2,00,000
- Miscellaneous & Rent: ₹50,000
Total Cost: ₹5,50,000
🏦 PMEGP Loan Details:
- Applicant Contribution (10%): ₹55,000
- Bank Loan (90%): ₹4,95,000
- Subsidy (Urban 15% / Rural 25%): ₹82,500 to ₹1,37,500
👩💼 Employment Generation:
- 3 Direct Jobs (Owner + 2 Helpers)
📊 Expected Annual Turnover:
- ₹10–₹12 lakhs/year
✅ Profit Margin:
- Approx. 20–25%
✅ PMEGP Project Report #2: Mobile Repairing & Accessories Shop
Project Name: Mobile Service & Accessories Store
Sector: Service
Location: Urban
Applicant Category: Youth / General / SC / ST
📌 Project Summary:
This shop will offer mobile repair services, sell accessories like chargers, headphones, screen guards, and provide mobile software services.
💰 Total Project Cost:
- Tools & Repair Kit: ₹50,000
- Inventory (Accessories): ₹1,00,000
- Furniture, Computer, Printer: ₹50,000
- Rent, Electricity, Setup: ₹50,000
Total Cost: ₹2,50,000
🏦 PMEGP Loan Details:
- Applicant Contribution (10%): ₹25,000
- Bank Loan: ₹2,25,000
- Subsidy (Urban 15%): ₹37,500
👨🔧 Employment Generation:
- 2 (Owner + 1 technician)
📊 Expected Annual Turnover:
- ₹6–₹8 lakhs/year
✅ Profit Margin:
- 30%+ (due to service income)
✅ PMEGP Project Report #3: Ladies Tailoring & Boutique
Project Name: Fashion Boutique and Tailoring Unit
Sector: Service
Location: Urban/Rural
Applicant Category: Women / Minority / SC / ST
📌 Project Summary:
This unit will offer stitching, alteration, and designer wear services for women and children. It may also sell fabric and readymade garments.
💰 Total Project Cost:
- Sewing Machines (4 units): ₹80,000
- Furniture, Ironing, Display Racks: ₹50,000
- Fabric, Material (Inventory): ₹1,00,000
- Branding & Rent: ₹70,000
Total Cost: ₹3,00,000
🏦 PMEGP Loan Details:
- Applicant Contribution (10%): ₹30,000
- Bank Loan: ₹2,70,000
- Subsidy (Rural 35% for women): ₹94,500
👗 Employment Generation:
- 4 Women (including the owner)
📊 Expected Annual Turnover:
- ₹8–₹10 lakhs/year
✅ Profit Margin:
- Around 25–30%
Tips to Get Your PMEGP Loan Approved
- ✅ Create a solid project report with investment, market scope, and revenue plan.
- ✅ Choose a bank with prior experience in disbursing PMEGP loans (like SBI, Canara, Bank of Baroda).
- ✅ Keep your documents 100% accurate and up to date.
- ✅ Mention if you’re from SC/ST/OBC or a women entrepreneur, as subsidies are higher.
downloadable PDF with 3 PMEGP project reports is ready:
👉 Click here to download PMEGP_Project_Reports.pdf
🔍 Real Success Stories from PMEGP
Thousands of small businesses in India have flourished using PMEGP. For example:
💡 Ramesh from Madhya Pradesh started a small LED bulb manufacturing unit and now employs 10 people — all thanks to a ₹6 lakh PMEGP loan.
(Reference: MSME.gov.in Success Stories)
🙋 Frequently Asked Questions (FAQs)
❓ Is a guarantor required for the PMEGP loan?
No guarantor is required for loans up to ₹10 lakhs.
❓ Is the PMEGP loan only for rural areas?
No, it is available in both urban and rural areas, but rural applicants get a higher subsidy.
❓ How long does it take to get PMEGP loan approval?
It usually takes 30–60 days from application to approval, depending on document verification and bank clearance.
❓ Can I apply for more than one PMEGP loan?
No. Only one person – one project is allowed under the PMEGP scheme.
❓ Who can apply for a PMEGP loan?
Anyone aged 18+, with at least 8th-grade education, and planning to start a new business.
❓ How much subsidy is provided under PMEGP?
- Urban Areas: 15–25%
- Rural Areas: 25–35%
SC/ST/OBC/women receive higher subsidies.
❓ Can existing businesses apply?
No. PMEGP is only for new enterprises.
❓ How long does it take for PMEGP loan approval?
Typically, 1 to 3 months, depending on your bank and documentation.
❓ Do I need collateral for a PMEGP loan?
Loans up to ₹10 lakh are usually collateral-free under the CGTMSE scheme.
🏁 Final Thoughts – Don’t Miss This Opportunity
The PMEGP loan scheme is a golden opportunity for individuals who want to start their own business with minimal investment and maximum government support.
Take advantage of the subsidy, build your own brand, and create jobs in your area. With simple online steps and minimal eligibility, there’s no reason to wait.
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