What is PMEGP Loan Scheme?
The Prime Minister Employment Generation Programme (PMEGP) is a flagship loan scheme of the Government of India. It offers loans up to ₹50 lakh with 15% to 35% subsidy depending on your profile and location. No guarantee is required as the government acts as your guarantor.
Who is Eligible?
- Indian citizen
- Not a government employee
- Must not be an income tax payer
- Must not have taken PMEGP loan previously
- Individuals can get loans up to ₹20 lakh
- NGOs or institutions can get up to ₹50 lakh
Benefits of PMEGP Loan
- Loan up to ₹50 lakh
- Subsidy up to 35% (i.e., ₹7 lakh waived on a ₹20 lakh loan)
- Low interest rate
- No need for collateral
- Subsidy credited directly to your account
Step-by-Step Online Application Process
- Go to Google and type “PMEGP Loan Apply”
- Click on the official PMEGP portal link
- Click on “Apply”
- Fill in the following details:
- Aadhaar number
- Applicant name and KYC details
- Select state, district, and sponsoring agency
- Personal details like DOB, gender, caste, education, etc.
- Communication and business unit address
- Business type: manufacturing, service, or trading
- Select your industry activity (e.g., cement, tailoring, etc.)
- Provide bank details for two banks
- Upload Required Documents:
- Passport photo
- Project file
- Caste certificate (if applicable)
- Aadhaar card
- Educational certificate
- Complete the PMEGP Scorecard:
- Age, dependents, housing, and residence data are used to calculate your score
- Save and proceed
- Final Submission:
- Choose whether to undergo EDP (Entrepreneurship Development Program) training
- Click on Final Submission
What Happens After Submission?
- Your application goes to the sponsoring agency
- They may contact you for document verification
- Once verified, the loan amount is disbursed directly to your bank account
Conclusion
The PMEGP Loan Scheme 2025 is a golden opportunity for entrepreneurs to start or expand their businesses with substantial government support. Follow the steps outlined above to apply successfully and take advantage of up to 35% subsidy.