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PMEGP Scheme: Get Loan up to Rs 25 lakh with 25 Percent Subsidy from KVIC; Check Method to Apply

Abha Toppo
Abha Toppo

Prime Minister’s Employment Generation Programme also known as PMEGP is a scheme for unemployed people who want to set up small businesses but due to lack of funds and guidance are not able to do so. In view of this, the government in 2008 launched PMEGP that focuses on generating self-employment opportunities for the unemployed youth & traditional artisans.

Recently, PMEGP has been a big savior for Assam’s Baby Medhi and Santu Choudhary.

Khadi Village and Industries Commission (KVIC chairman) V K Saxena in a tweeted said that “It is a moment of pride as for the first time that two women entrepreneurs from Guwahati Baby Medhi and Santu Choudhary got loan to set up Agarbatti manufacturing unit under PMEGP yojana. My best wishes for their success.”

According to KVIC chairman, 140 such applications are under process. Not many of you may be aware that under the PMEGP, aspiring entrepreneurs can get a loan up to Rs 25 lakh that too with a government subsidy of 25% for setting up a manufacturing unit in rural areas of the country.  Below we have mentioned all the details about the scheme:


What is PMEGP scheme?

Prime Minister’s Employment Generation Programme is a credit-linked subsidy scheme that is run by the Ministry of Micro, Small & Medium Enterprises, Government of India. Khadi & Village Industries Commission is the nodal agency for execution of the programme at the national level. The PMEGP scheme is implemented through - KVIC, KVIB & District Industries centre at the state level.

The KVIC official website says that the maximum project cost permitted under the scheme is Rs 25 lakh for a manufacturing unit & Rs 10 lakh for setting up a Service unit. Also, the cost of land is not counted for calculating the project cost.

Admissible government subsidy

For rural areas, government offers 25% subsidy for the general category (Gen) and 35% for special category that includes OBC/SC/ST/Minorities/Women/ physically handicapped, Ex-servicemen, NER, Hill & Border areas. The admissible subsidy rates for both categories in urban regions are 15 percent and 25 percent respectively.

Eligibility for PMEGP loan

  • Individuals above 18 years of age

  • Must have passes class VIII for a project above Rs 5 lakh in the service sector & above Rs 10 lakh in the manufacturing sector

  • Institutions registered under the Societies Registration Act- 1860

  • Self-help groups and charitable trust

  • Production based co-operative societies


How to apply for loan under PMEGP

Here is how you can apply at PMEGP website;

Step 1- Go to the websites - www.kviconline.gov.in or  https://msme.gov.in/ 

Step 2- Click the link that says ‘Prime Minister Employment Generation Programme’

Step 3 - PMEGP Application Form will be visible

Step 4 – Now fill in the registration/application form

Step 5 - Click the ‘Submit’ button and complete the registration process

For more details visit - www.kviconline.gov.in/

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