How To Apply PMEGP Loan Scheme Online

Starting a business in India often requires financial support, and the Prime Minister’s Employment Generation Programme (PMEGP) is one of the most powerful government loan schemes designed to help aspiring entrepreneurs. The PMEGP loan scheme provides subsidized bank loans to individuals who want to start manufacturing or service-based enterprises.

In this detailed guide, you’ll learn how to apply PMEGP loan scheme online, eligibility criteria, subsidy details, required documents, and tips for faster approval.

What Is PMEGP Loan Scheme?

The PMEGP Loan Scheme is a credit-linked subsidy program launched by the Government of India and implemented by KVIC (Khadi and Village Industries Commission). The scheme aims to generate employment opportunities in rural and urban areas by supporting micro-enterprise startups.

Under PMEGP, applicants can receive a bank loan with government subsidy, reducing the financial burden of starting a business.

PMEGP Loan Amount Details

The PMEGP scheme offers different loan limits based on business type:

🔹 Maximum Loan Amount

• Manufacturing Sector: Up to ₹50 lakh
• Service Sector: Up to ₹20 lakh

🔹 Subsidy Percentage

• General Category (Urban): 15%
• General Category (Rural): 25%
• SC/ST/OBC/Women/Minorities/Ex-Servicemen:
  • Urban: 25%
  • Rural: 35%

The subsidy amount is adjusted directly against the loan, reducing your repayment burden.

PMEGP Loan Eligibility Criteria

Before applying online, ensure you meet the eligibility requirements:

✔️ Applicant Eligibility

• Indian citizen
• Age: 18 years or above
• Minimum education: 8th pass (for loans above ₹10 lakh in manufacturing and ₹5 lakh in services)
• First-time entrepreneur (existing units are not eligible)

✔️ Business Eligibility

• New business only
• Manufacturing or service-based enterprise
• No defaulted bank loans
• SHGs, trusts, or institutions are not eligible (individuals only)

Documents Required for PMEGP Loan Application

Having the correct documents increases approval chances and speeds up processing.

📄 Mandatory Documents

• Aadhaar Card
• PAN Card
• Passport-size photograph
• Educational qualification certificate
• Caste certificate (if applicable)
• Project report
• Bank account details
• Rural/Urban certificate
• EDP training certificate (if required)

How To Apply PMEGP Loan Scheme Online (Step-by-Step)

Follow these steps to apply online easily:

Step 1: Visit the Official PMEGP Portal

Go to the official PMEGP website managed by KVIC.

Step 2: Click on “New Applicant Registration”

Select the option for PMEGP Online Application for Individual.

Step 3: Fill the Application Form

Enter details such as:

• Personal information
• Aadhaar number
• Business category
• Location (rural/urban)
• Project cost
• Bank preference

Step 4: Upload Required Documents

Upload scanned copies of all necessary documents in the prescribed format.

Step 5: Submit the Application

Carefully review the form and submit it online. After submission, note down the application ID for tracking.

PMEGP Loan Application Status Check

After applying, you can track your application status online using:

• Application ID
• Aadhaar number

The status may show:

• Under Process
• Recommended to Bank
• Approved
• Rejected

Bank Loan Approval Process

Once KVIC or the District Task Force Committee (DTFC) approves your application:

1. Your selected bank will verify documents
2. Bank officials may conduct a field inspection
3. Loan amount is sanctioned
4. Subsidy is locked for 3 years
5. Loan is disbursed to your account

PMEGP Loan Repayment Details

• Loan tenure: 3 to 7 years
• Moratorium period: 6 months
• Interest rate: As per bank norms
• Subsidy becomes final after successful operation of the unit for 3 years

Benefits of PMEGP Loan Scheme

✔️ Government subsidy reduces loan burden
✔️ No collateral required for small loans
✔️ Ideal for startups and MSMEs
✔️ Encourages self-employment
✔️ High approval rate with proper documentation

Common Reasons for PMEGP Loan Rejection

Avoid these mistakes:

• Weak or unrealistic project report
• Incorrect information
• Incomplete documents
• Poor credit history
• Ineligible business activity

Tips to Get PMEGP Loan Approved Faster

✅ Prepare a professional project report
✅ Choose a nearby bank branch
✅ Attend EDP training if required
✅ Maintain a good CIBIL score
✅ Follow up with the bank regularly

Apply Link 

Final Thoughts

The PMEGP Loan Scheme is one of the best government initiatives for individuals who want to start their own business with financial support and subsidy. By following the correct online application process and preparing proper documentation, you can successfully secure funding for your dream enterprise.

If you are serious about entrepreneurship, PMEGP can be your first step toward financial independence.