PMEGP Loan (Prime Minister’s Employment Generation Programme)
PMEGP is a Government of India credit-linked subsidy scheme that supports individuals, entrepreneurs, and MSMEs in starting new manufacturing or service-based ventures. Applicants can receive a subsidy of 15%–35% and loans up to ₹50 lakhs.
Key Highlights
What is PMEGP Loan?
PMEGP (Prime Minister’s Employment Generation Programme) is a flagship scheme to generate self-employment opportunities. It combines subsidy support from the government with bank-financed loans to help individuals start new manufacturing or service-based ventures.
The scheme encourages entrepreneurship, boosts MSME development, and supports job creation across urban and rural India.
Under PMEGP, beneficiaries receive a government subsidy depending on their category and location.
PMEGP Loan Categories
Manufacturing Units
Up to ₹50 Lakhs
For projects like fabrication, production, processing, packaging, industrial units, etc.
Service Sector Units
Up to ₹20 Lakhs
Includes salons, boutiques, repair workshops, training institutes, trading units, etc.
* Only new units are eligible. Existing units cannot apply under PMEGP.
PMEGP Subsidy Structure
| Category | Urban Subsidy | Rural Subsidy |
|---|---|---|
| General | 15% | 25% |
| SC / ST / OBC / Minorities / PH | 25% | 35% |
| Women, Ex-Servicemen, NE region | 25% | 35% |
Eligibility for PMEGP Loan
Minimum 18 years of age
Minimum 8th pass (for projects above ₹10 Lakhs)
New projects only (existing units not allowed)
SHGs (including those under NRLM)
Societies and Charitable Trusts
Production-based & service-based units
Benefits of PMEGP Loan
High subsidy up to 35%
Loan up to ₹50 Lakhs
Low beneficiary contribution
Ideal for new entrepreneurs
Supports rural & urban employment
Covers wide range of manufacturing/services
Government-backed scheme
Boosts MSME sector growth
Interest Rates & Charges
- Interest Rate: 9%–12% (bank dependent)
- Subsidy: 15%–35% based on category
- Loan Tenure: Up to 7 years
- Processing Fees: 0.5% – 1%
- Collateral: Required only for certain loan slabs
Documents Required
- Aadhaar Card & PAN Card
- Educational Qualification Certificates
- Passport Size Photographs
- Detailed Project Report (DPR)
- Business Plan
- Caste Certificate (For Subsidy Eligibility)
- Bank Account Details
- Rent Agreement / Property Documents
- Quotations of Machinery/Equipment
- Experience Certificate (If available)
- KYC Documents
PMEGP Application Process
- 1. Prepare business idea & DPR
- 2. Apply online via PMEGP portal
- 3. Upload required documents
- 4. District-level review & interview
- 5. Bank appraisal & verification
- 6. Loan sanction
- 7. Subsidy approval from KVIC/KVIB
- 8. Disbursement of funds
Common Reasons for Rejection
- Incomplete documents
- Poor DPR / unrealistic projections
- Project not eligible under PMEGP
- Existing business applying as “new”
- Negative credit history
- Insufficient bank balance
How Saarthium Helps You
Accurate DPR preparation
Assistance in PMEGP online form
Document organization & validation
Bank coordination & follow-ups
Eligibility evaluation
Support till subsidy approval
Quick Information
Why Choose Us?
Expert Team
CA, CS & Legal Experts
Fast Process
Quick turnaround time
Trusted Service
Trusted by businesses
Frequently Asked Questions
What is PMEGP?
Who can apply for PMEGP?
How much subsidy is available?
Is a DPR mandatory?
Can existing businesses apply?
Need Help with PMEGP Application?
We assist with DPR, documentation, online application, subsidy support, and end-to-end loan processing.