How to Apply for PMEGP Loan Online

The Prime Minister Employment Generation Programme (PMEGP) is one of the most popular government loan schemes in India that helps individuals start their own business with financial assistance and subsidy support.

This scheme is specially designed to promote self-employment, entrepreneurship, and small business development across urban and rural areas of India.

An important update is that the PMEGP scheme is currently available till 31 March 2026, making this the final financial period to apply under the extended program. Therefore, eligible applicants should apply as soon as possible.

This article explains eligibility, subsidy structure, documents required, interest rate, and the complete online application process step by step, so readers can apply confidently without confusion.

What is PMEGP Loan?

PMEGP stands for Prime Minister Employment Generation Programme, a credit-linked subsidy scheme launched by the Government of India to support new entrepreneurs.

Under this scheme:

• The government provides bank loans + subsidy
• Applicants can start manufacturing or service businesses
• Subsidy amount does not need to be repaid

The scheme is implemented through the following authorities:

• Khadi and Village Industries Commission (KVIC)
• District Industries Centres (DIC)
• Partner Banks across India
  

Once your application is approved, banks receive instructions to process your loan.

PMEGP Loan Eligibility Criteria

Before applying, you must ensure that you meet the basic eligibility conditions.

Age Requirement

• Applicant must be 18 years or above
  

Educational Qualification

• Minimum qualification: 8th Pass
  

Eligible Applicants

The following entities can apply:

• Individual entrepreneurs
• Proprietorship firms
• Self Help Groups
• LLPs and similar entities
  

Business Requirement

• The business must be new
• Existing businesses are not eligible
• Applicant should not have already taken subsidy under another government scheme
  

Income Limit

• No income ceiling is applicable.
  

PMEGP Loan Amount & Subsidy Structure

The subsidy depends on category and location (Urban/Rural).

Loan Limit

Subsidy for General Category

Example:
If you take a ₹50 lakh loan in a rural area, you may receive ₹12.5 lakh subsidy, which you do not need to repay.

Subsidy for Special Category (SC/ST/OBC/Minorities/Women etc.)

Interest Rate & Loan Tenure

• Interest Rate: Approx. 10% – 12%
• Loan Tenure: Up to 10 years
• Loan Type:
  • Term Loan
  • Working Capital / Cash Credit (CC) facility (in some cases)
    

Documents Required for PMEGP Loan

Prepare these documents before starting the online application:

• Aadhaar Card
• PAN Card
• Educational Certificate (8th pass or above)
• Passport-size Photograph
• Udyam Registration Certificate
• Project Report (Mandatory)
• GST Registration (if applicable based on turnover). Need a GST Registration Number? Apply Here
  

A detailed project report is very important because loan approval largely depends on business feasibility.

Step-by-Step Process to Apply for PMEGP Loan Online

Below is the complete online application procedure explained in simple steps.

Step 1: Visit Official PMEGP Portal

Go to the official PMEGP website (Link given below) and choose Application for New Unit. Now Select your preferred language and proceed.

Step 2: Fill Applicant Basic Details

Enter personal information carefully:

• Aadhaar Number & Applicant Name
• Sponsoring Agency
  • Select DIC (District Industries Centre) or KVIC
• State and District
• Legal Type (Individual / Proprietorship etc.)
• Gender & Date of Birth
• Social Category
• Educational Qualification
• Address, Mobile Number & Email ID

Step 3: Select Business Activity

Now provide business-related details:

• Choose:
  • Manufacturing Sector OR
  • Service Sector
• Select Industry Type
• Search and select your business activity
• Enter Product Description
  (Example: Bakery – Cakes and bakery products)
  

Step 4: EDP Training Information

You will be asked about EDP (Entrepreneurship Development Programme) training.

• If not completed → Select No
• Training can be completed later after approval

Step 5: Enter Project Cost Details

Fill financial details according to your project report:

• Capital Expenditure
• Working Capital
• Total Project Cost
  

Also mention:

• Number of employment opportunities your business will generate.
  

Step 6: Select Financing Bank

Choose:

• Preferred Bank (where you hold account)
• Alternative Bank option
  

You may select public or private sector banks.

Step 7: MSME & Scheme Benefits

Select Yes if you want to avail MSME benefits under the scheme.

After saving the application:

User ID will be sent to your registered email.

Step 8: Login to Dashboard

After login, you will see multiple tabs:

• Application Data
• Score Card
• Upload Documents
• EDP Section
• Final Submission
  

Step 9: Fill Score Card

You must answer questions related to:

• Family dependents
• Residential status
• Business location stability
• Educational qualification
  

Marks are assigned automatically based on responses.

Step 10: Upload Documents

Upload the following:

• Passport-size photograph
• Project Report
• Educational Certificates
• Degree/Diploma (if applicable)
  

Step 11: EDP Training Module

You may select and complete online EDP training.

Note:

• EDP training is mandatory after approval.
• Not required if loan amount is below ₹2 lakh.
  

Step 12: Final Submission

Click Final Submission to submit your application. Your online application process is now complete.

Official Link for PMEGP Loan Application – https://kviconline.gov.in/pmegpeportal/pmegphome/index.jsp

What Happens After Submission?

After submission:

1. Application goes to the Nodal Officer / Implementing Agency
2. Application is verified and approved
3. Sent to selected banks
4. Bank evaluates project viability
5. Applicant completes EDP training
6. Loan sanction & subsidy processing begins
   

Grievance Support Facility

If you face:

• Delay in approval
• Bank issues
• Agent or commission demands
  

You can use the Grievance Tab available on the PMEGP portal to file complaints directly.

Final Words

PMEGP Loan is a powerful opportunity for individuals who want to start their own business with government support and subsidy benefits. Since the scheme is currently available only till March 2026, interested entrepreneurs should apply without delay.

With proper documentation, a strong project report, and correct online application, you can secure funding without paying middlemen or agents.

〉Start early
〉Prepare documents properly
〉Submit accurate information

This scheme can help transform your business idea into a successful enterprise while generating employment opportunities in India.

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