Home Loan PMEGP Loans for Eligibility Criteria: How to Apply?

PMEGP Loans for Eligibility Criteria: How to Apply?


The goal of the Prime Minister’s Employment Generation Programme (PMEGP) was to create new microenterprises, initiatives, and self-employment opportunities in both rural and urban areas. Depending on the beneficiary’s region and category, the PMEGP plan offers a money margin subsidy that can vary from 15% to 35% of the project cost. The beneficiary is required to contribute between five and ten percent of the project’s total cost. Banks are funding the remaining portion of the project’s expenses. Additionally, the program provides a second PMEGP loan to well-performing PMEGP or MUDRA units to expand or upgrade their current or related operations. In this article, we are going to discuss pmegp loan, pmegp loan eligibility, pmegp loan details, etc.

What is the PMEGP Scheme?

The Union Ministry of Micro, Small, and Medium Enterprises (MoMSME) is responsible for managing the Prime Minister’s Employment Generation Programme (PMEGP), a central government initiative. This scheme’s main goal is to encourage self-employment possibilities in both rural and urban areas by giving new micro-enterprises, projects, and self-employment enterprises credit-linked subsidies.

Margin money subsidies, which vary from 15% to 35% for new units/projects up to Rs 50 lakh in the manufacturing industry and up to Rs 20 lakh in the services segment, are the mode of delivery for the subsidy. The remaining credit can be obtained from the banks without any Government approval if the total project cost exceeds Rs. 50 lakh for the manufacturing segment and Rs. 20.00 lakhs for the services segment.

The maximum cost of the project or unit eligible for Margin Money subsidy is Rs 1 crore for the manufacturing segment and Rs 25 lakh for the services segment in the event of the second loan sanctioned to existing PMEGP units for their upgradation. The maximum subsidy for manufacturing units under the 2nd PMEGP loans is set at Rs. 15 lakh and Rs. 3.75 lakh for service units.

The remaining credit can be obtained from banks without any government assistance in the event of units where the total project cost exceeds Rs. 1.00 Crore for the manufacturing segment and Rs. 25.00 lakhs for the services segment.

Eligibility Criteria For PMEGP Loan

1. Anyone over the age of 18

2. There won’t be a cap on money for support in starting initiatives under PMEGP.

3. The beneficiaries of projects costing more than Rs. 10 lakh in the manufacturing sector and more than Rs. 5 lakh in the service/business sector must have completed at least an 8th-grade pass in school.

4. Help under the program is only available for recently approved, functional projects that have received particular approval under the PMEGP.

5. Only units that are now in service or have previously received government subsidies under PMRY, REGP, PMEGP, CMEGP, or any other program run by the Indian or state governments are eligible.

6. Term loans are not available for projects that do not involve capital expenditures.

7. The project budget does not include the cost of the land.

8. Applications can be processed by all implementing agencies (KVIC, KVIB, DIC, and Coir Board) in both urban and rural regions.

9. The applicant must have a current Aadhaar number.

10. The applicant must provide permission for the UIDAI server to confirm demographic information, including name, gender, date of birth, UID number, and mobile number.

PMEGP Loan Documents Required

The following scanned documents are needed for the online application:

1. A passport-sized photo

2. Highest Level of Education

3. Overview of the Project Report/Detailed Project Report

4. Certificate of Social or Special Category, if relevant

5. A certificate of rural area, if any

pmegp loan apply

How To Apply For PMEGP Loan Online?

Procedure for Online Application, that you have to first visit the official website of PMEGP, then:

1. Verify your eligibility

2. Verify and authenticate your Aadhaar information online.

3. The creation of a user ID and password, which will be texted to the applicant’s registered mobile number.

4. Sign on to the PMEGP portal to fill out more information.

5. Upload the required files

6. Complete the Score Card and check the information.

7. Final submission of the form.

Until the final payment and adjustment of the MM subsidy, the applicant can check the status of the application form submission.

Frequently Asked Questions (FAQs)

Which beneficiaries benefit from the PMEGP program?

The following organizations are the PMEGP scheme beneficiaries:

  • Cooperative Production Societies
  • Self-help groups (SHGs) – Charitable trusts 
  • Societies recognized by the Societies Registration Act of 1860
  • People who are older than the age of 18 years

Is it possible for a person living in a city to apply for PMEGP loans?

Yes, all eligible individuals can apply for a PMEGP loan plan no matter where they now live. However, the amount of subsidy you are eligible to receive is limited in a few ways. In urban regions, the general category subsidy is 15%, whereas in rural ones it is 25%. There are 25% in urban areas and 35% in rural areas when it comes to the weaker parts of society.

Are there any age limitations on PMEGP loan eligibility?

The PMEGP requires that applicants meet the minimum age requirement of 18 years old to be eligible. However, there are no upper age limits, even if banks may set their guidelines.

What is the full form of PMEGP?

The PMEGP full form is the Prime Minister’s Employment Generation Programme (PMEGP)

What is the duration required to get a PMEGP loan?

After the end of the 16-day training program, banks usually need a total of two months to approve a PMEGP loan.


An important step to increase employment and deal with unemployment in India is the PMEGP plan. By providing financial support and guidance to potential business owners, the program not only gives people more power but also helps the micro, small, and medium-sized business sectors grow. The program has the potential to be extremely important in helping India achieve economic success and independence as it develops.



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