The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme that helps people start their own small businesses. It is managed by the Ministry of MSME and implemented by the Khadi and Village Industries Commission (KVIC) along with State Khadi Boards and District Industries Centres.
The scheme aims to promote self-employment and create jobs in both urban and rural areas.
🧾 Who Can Apply for PMEGP?
Any individual above 18 years of age can apply for a PMEGP loan.
However, for larger projects, educational qualifications are required:
* Manufacturing sector: Minimum 8th standard pass for projects above ₹10 lakh
* Business/Service sector: Minimum 8th standard pass for projects above ₹5 lakh
Only new projects are eligible under the PMEGP scheme.
👥 Other Eligible Entities
Besides individuals, the following groups and institutions can also apply:
* Self Help Groups (SHGs), including those from the BPL category (not availing other scheme benefits)
* Institutions registered under the *Societies Registration Act, 1860*
* Production Co-operative Societies
* Charitable Trusts
📑 Documents Required
You’ll need to upload the following documents when applying for a PMEGP loan:
* Aadhaar Card and PAN Card
* Caste Certificate (if applicable)
* Special Category Certificate (if applicable)
* Rural Area Certificate
* Project Report
* Education / EDP / Skill Development Training Certificate
👉 For Institutions, also include:
* Registration Certificate
* Authorization Letter / Copy of Bye-laws
* Certificate for Special Category (if applicable)
🏦 Banks That Provide PMEGP Loans
PMEGP loans are provided through:
* 27 Public Sector Banks
* All Regional Rural Banks
* Co-operative Banks approved by the State Level Task Force Committee
* Private Sector Scheduled Banks approved by the State Level Task Force Committee
* SIDBI (Small Industries Development Bank of India)
💡 Good to know:
* Loans up to ₹10 lakh are collateral-free and covered under CGFMU/CGTMSE.
* Loans above ₹10 lakh are covered under CGTMSE.
🏭 What Qualifies as a Village Industry?
A village industry is one located in a rural area that produces goods or services with:
* Maximum capital investment:*₹1 lakh (plain areas) or ₹1.5 lakh (hill areas).
Even small towns with a population below 20,000 can qualify if recorded as a village in the state’s revenue records.
💻 Step-by-Step Guide to Apply for PMEGP Loan Online
Here’s how to apply online for a new unit under the PMEGP scheme:
Step 1:
Go to the official PMEGP portal:
Click on ‘Apply’** under the Application for New Uni section.
Step 2:
Fill out the online form carefully and click **‘Save Application Data’**.
Step 3:
Note down your Application ID and Password shown on the screen.
Step 4:
Click ‘Proceed’ to start uploading your documents. Use the ‘Choose File’ and ‘Upload’ buttons for each document.
Step 5:
Upload all the required documents one by one.
Step 6:
Click ‘Score Card’ to check your eligibility and loan approval chances.
Step 7:
Answer the questions, tick the checkbox, and click ‘Save’.
Step 8:
Go to the ‘EDP’ section and choose your training option (if you haven’t completed it yet).
Step 9:
Click ‘Final Submission’ → ‘Final Submission of Application to Sponsoring Agency’.
Step 10:
Take a printout of your application. Attach photocopies of all uploaded documents and submit them to the bank you selected in the form.
✅ You will receive a call from the bank within 30–45 days if your application is approved.
⚠️ Important Note
Existing units that have already availed government subsidies under PMRY, REGP, or any other Central/State schemes are not eligible for PMEGP.
🔗 Useful Links
*PMEGP Online Application Portal:
[https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp](https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp)
*Online EDP Portal: [www.udyami.org.in](http://www.udyami.org.in)
*Online EDP Mobile App: Available for download through the EDP portal
🌟 Final Thoughts
The PMEGP scheme is a great opportunity for aspiring entrepreneurs to turn their ideas into small businesses with government support. By following the online process carefully and preparing your documents in advance, you can make your application process smooth and hassle-free.
