PMEGP Home - Prime Minister's Employment Generation Programme Scheme

Q: 4. What is the maximum loan amount under PMEGP?

You can apply for financial support up to:₹50 lakh for manufacturing units₹20 lakh for service units

1. What is the PMEGP scheme?

PMEGP is a government-sponsored credit-linked subsidy scheme that provides financial support to set up new micro-enterprises in manufacturing and service sectors.

2. Who is eligible to apply for a PMEGP loan?

Eligibility depends on various factors. Please check your eligibility by consulting with our expert.

3. How can I apply for a PMEGP loan online?

You can apply through the portal .

4. What is the maximum loan amount under PMEGP?

You can apply for financial support up to:

₹50 lakh for manufacturing units
₹20 lakh for service units

5. What is the PMEGP subsidy percentage?

Subsidy ranges from 15% to 35% depending on rural/urban location and category (General or Special category like SC/ST/Women/PH).

6. What is the interest rate for PMEGP loans?

PMEGP loan interest rates are generally between 8% to 12% per annum, varying by bank and project type.

7. What documents are required for PMEGP loan application?

Common PMEGP documents include Aadhaar, PAN, passport photo, project report, educational certificates, caste certificate (if applicable), and other.

8. Is PMEGP loan available without collateral?

Yes. Loans up to ₹10 lakh generally do not require collateral under CGTMSE guidelines, but it depends on bank policy.

9. Can an existing business apply for PMEGP?

PMEGP is only for new business units. Existing units already operating or availing subsidies are not eligible.

10. How long does PMEGP loan approval take?

The approval process depending on document verification, bank appraisal, and subsidy approval.

11. How to check PMEGP loan status online?

You can track your application using your PMEGP Application ID on the official portal under the “Track Application Status” section.

12. What types of businesses are allowed under PMEGP?

Most manufacturing and service sector activities are allowed. Examples include fabrication units, food processing, tailoring, computer services, and similar micro-enterprises.

13. Which businesses are not eligible under PMEGP?

Businesses involving alcohol, tobacco, meat processing, and certain agricultural activities fall under the negative list and cannot apply.

14. Do I need a project report for PMEGP loan?

Yes. A detailed project report (DPR) is mandatory, including cost structure, financial projections, and business feasibility.

15. Can women entrepreneurs apply for PMEGP?

Yes. Women applicants are eligible for higher subsidy (up to 35%) and are encouraged under the scheme.

16. What is the repayment period for PMEGP loans?

Loan repayment is usually allowed over 3 to 7 years, including a possible moratorium period as per bank rules.

17. Does PMEGP provide training for applicants?

Yes. Selected applicants undergo Entrepreneurship Development Program (EDP) training before loan disbursement.

18. Is there any application fee for PMEGP loan?

No. PMEGP online application is completely free on the official portal.

19. Can I submit multiple PMEGP applications?

No. Only one application is allowed per individual/business under the PMEGP scheme.

20. What is the role of banks in the PMEGP scheme?

Banks evaluate the project, approve the loan, disburse funds, and then claim government subsidy through KVIC after the unit becomes operational.

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Country	India
Area	3,287,263 sq. km.
States	28
Population	1,46,39,00,000
Literacy	80.9%

Country	India
Area	3,287,263 sq. km.
States	28
Population	1,46,39,00,000
Literacy	80.9%