PMEGP Loan 2025: Start Your Own Business with Govt-Backed Loan up to ₹25 Lakhs and Subsidy up to ₹8.75 Lakhs

If you're a young entrepreneur dreaming of starting your own venture, the Pradhan Mantri Employment Generation Programme (PMEGP) might just be the golden opportunity you've been waiting for. Backed by the Ministry of MSME, the scheme provides loans up to ₹25 lakhs with government subsidy up to ₹8.75 lakhs, especially targeting unemployed youth, women, and marginalized communities.

Let's understand how this scheme works, who is eligible, and how you can apply step-by-step.

Quick Overview

Feature	Details
Scheme Name	PMEGP (Pradhan Mantri Employment Generation Programme)
Administered By	Khadi and Village Industries Commission (KVIC) under Ministry of MSME
Loan Amount	Up to ₹25 lakhs
Maximum Subsidy	₹8.75 lakhs
Applicable To	New entrepreneurs (First-time business owners)
Age Limit	Minimum 18 years
Education	Minimum 8th Pass

What is PMEGP?

The PMEGP is a credit-linked subsidy scheme aimed at generating self-employment opportunities by helping individuals establish new micro-enterprises in both urban and rural India.

Under this scheme:

• You can avail of collateral-free loans from approved banks.
• A significant portion of the loan (up to 35%) is subsidized by the government.
• Special incentives are offered to SC/STs, women, and ex-servicemen.

Eligibility Criteria

You must meet the following to be eligible:

• Minimum Age: 18 years
• Minimum Qualification: Class 8 pass
• No prior benefit: You should not have availed subsidy under any other similar scheme.
• You must plan to start a new unit (existing businesses are not eligible).
• You must submit a project report justifying business feasibility.

Loan & Subsidy Details

Location Type	Max Loan Amount	Subsidy %	Max Subsidy
Rural Area	₹25,00,000	35%	₹8,75,000
Urban Area	₹25,00,000	25%	₹6,25,000

Note: Higher subsidy for SC/ST, OBC, women, physically challenged, ex-servicemen, and Northeast region residents.

Required Documents

Be ready with the following:

• Aadhar Card
• PAN Card
• Education Certificate (Minimum 8th)
• Residential Proof
• Bank Passbook
• Passport-size Photograph
• Business Project Report (from a Chartered Accountant)

Step-by-Step Application Process

1. Prepare a Project Report

Get a business plan/project report prepared with investment, cost, employment projection, and market plan.

2. Apply on the PMEGP Portal

Visit https://www.kviconline.gov.in/pmegp/

• Select Online Application Form for Individual.
• Fill in all personal, financial, and project details.
• Upload required documents.

3. Choose Implementing Agency

Pick one of the following for project verification:

• KVIC (Khadi and Village Industries Commission)
• KVIB (Khadi and Village Industries Board)
• DIC (District Industries Centre)

4. Interview & Scrutiny

Your proposal will be evaluated by the District Level Task Force Committee (DLTFC).

5. Bank Sanction

Once approved, the bank will sanction your loan.

6. Mandatory EDP Training

You must complete EDP (Entrepreneurship Development Program) training:

• 15 online classes and tests.
• Issued by certified training centres.
• Subsidy is released only after EDP certification.

Who Benefits the Most?

PMEGP is ideal for:

• Youth from rural backgrounds.
• Women entrepreneurs looking to start small businesses.
• SC/ST/OBC applicants needing financial assistance.
• Retired armed forces personnel interested in self-employment.

Key Links

• Official PMEGP Website: https://www.kviconline.gov.in/pmegp/
• EDP Training Details: Available on same portal after application submission.
• Toll-Free Helpdesk: 1800-3000-0034 (KVIC)

Final Takeaway

The PMEGP scheme is not just a loan - it's a launchpad. If you've got a viable business idea but lack capital, this government-backed initiative gives you a safe, subsidized, and structured pathway to become an entrepreneur.

Whether you're planning to open a manufacturing unit, service center, tailoring shop, dairy farm, or agri-processing unit, PMEGP makes it financially possible without burdening you with full loan repayment.

So don't wait-register today, prepare your project, and take your first step towards becoming a self-made entrepreneur.