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Learn how to apply for PMEGP Loan online in 2025. Get up to ₹50 lakh loan at 10–11% interest with up to 35% government subsidy. Check eligibility, required documents, and step-by-step application process.
Introduction
Looking to start your own business but short on funds? The Prime Minister’s Employment Generation Programme (PMEGP) offers loans of up to ₹50 lakh at just 10–11% interest, plus a government subsidy of up to 35%.
In this complete guide, we’ll explain PMEGP Loan eligibility, documents required, loan limits, subsidy benefits, and the online application process—so you have everything you need to get started.
What is PMEGP Loan Scheme?
The PMEGP Loan Scheme is a government initiative launched by the Ministry of Micro, Small and Medium Enterprises (MSME) and implemented by KVIC, KVIB, and DIC. It aims to generate employment by providing financial assistance for new micro-enterprises in manufacturing and service sectors.
- Loan Amount – Up to ₹50 lakh (Manufacturing) / ₹20 lakh (Service)
- Subsidy – 15% to 35% depending on category and location
- Interest Rate – Around 10–11%
- Repayment Period – 3 to 7 years
PMEGP Loan Eligibility Criteria
To apply for a PMEGP Loan online in 2025, you must meet the following requirements:
- Age – Minimum 18 years.
- Education – Passed at least Class 8.
- Income Limit – No income ceiling.
- Existing Unit – Not eligible if already receiving government support.
- Identification – Must have a valid Aadhaar card.
PMEGP Loan Documents Required
When applying for a PMEGP loan, you will need the following:
- Latest passport-size photograph
- Educational qualification certificate (Class 12th, Graduation, or PG)
- Business project report (prepared by a CA)
- Special category certificate (SC/ST/OBC/Minority/Ex-Servicemen, etc.) if applicable
- Rural area certificate (if applicable)
PMEGP Loan Amount and Subsidy
| Category | Urban Subsidy | Rural Subsidy |
|---|---|---|
| General Category | 15% | 25% |
| SC/ST/OBC/Minority/PH/Women/Ex-Servicemen | 25% | 35% |
Loan Limits:
- Manufacturing Unit – Max ₹50 lakh
- Service Unit – Max ₹20 lakh
How to Check PMEGP Loan Eligibility Online
You can check your PMEGP Loan eligibility on the Jan Samarth Portal:
- Visit the official Jan Samarth Portal.
- Select PMEGP Loan Scheme.
- Enter your details – type of business, education, location, project cost, and own contribution.
- The portal will display the eligible loan amount and subsidy.
PMEGP Loan Apply Online – Step-by-Step Process (2025)
Follow these steps to apply for PMEGP Loan online:
Step 1: Visit the PMEGP Official Portal
Go to the PMEGP ePortal.
Step 2: Enter Aadhaar Details
- Provide your Aadhaar number or enrolment ID.
Step 3: Fill Applicant & Business Details
- Applicant name or business name
- Select Sponsoring Agency – KVIC, KVIB, or DIC
Step 4: Provide Address and Contact Details
- The system will show the nearest sponsoring agency office automatically.
Step 5: Business Activity Details
- Select manufacturing/service/trading
- Specify your product/service
Step 6: Project Cost & Bank Details
- Enter the total project cost and your contribution
- Provide business-linked bank account details
Step 7: CGTMSE Option & Save
- Select whether to avail Credit Guarantee coverage
- Save and note your Application ID & Password
Step 8: Upload Documents & Complete Scorecard
- Upload all required documents
- Fill the scorecard (aim for 60+ score for better approval chances)
PMEGP Loan Approval Process
- Application is verified by the Sponsoring Agency.
- Forwarded to the Bank for financial sanction.
- EDP Training must be completed before fund release (not required for projects under ₹2 lakh).
- Loan amount with subsidy is disbursed to your bank account.
Benefits of PMEGP Loan Scheme
- High loan limit for both manufacturing and service sectors
- No income limit for applicants
- Government subsidy up to 35%
- Encourages entrepreneurship and employment generation
Final Words
The PMEGP Loan Scheme 2025 is one of the best opportunities for aspiring entrepreneurs in India. With substantial financial support and a generous government subsidy, you can start your dream business without heavy financial pressure.
✅ Pro Tip: Prepare a strong project report and score above 60 in the scorecard to increase approval chances.
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Frequently Asked Questions (FAQs) on PMEGP Loan Scheme
1. What is the PMEGP Loan Scheme?
The PMEGP (Prime Minister’s Employment Generation Programme) is a credit-linked subsidy scheme by the Government of India to provide financial support for setting up micro-enterprises in manufacturing and service sectors.
2. How much loan can I get under PMEGP?
You can get up to ₹50 lakh for manufacturing units and up to ₹20 lakh for service sector units.
3. What is the subsidy percentage in PMEGP?
The subsidy ranges from 15% to 35%, depending on your category (General or Special) and whether your business is located in an urban or rural area.
4. What is the interest rate for PMEGP loan?
The interest rate is usually between 10% and 11%, depending on the bank.
5. Is there any income limit for applying to PMEGP?
No, there is no income limit for applying under this scheme.
6. Can an existing business apply for PMEGP loan?
No, only new projects are eligible. Existing units already receiving government subsidies cannot apply.
7. What is the minimum education qualification required for PMEGP loan?
You must have passed at least Class 8 to be eligible.
8. How do I apply for PMEGP loan online?
You can apply through the official PMEGP ePortal (kviconline.gov.in/pmegp) by filling in your details, uploading documents, and submitting your application.
9. What is EDP training in PMEGP?
EDP (Entrepreneurship Development Programme) training is mandatory after loan sanction to develop business management skills. It is not required for projects costing below ₹2 lakh.
10. How long does it take to get PMEGP loan approval?
The processing time varies but generally takes 1 to 3 months, depending on document verification and bank processing.