PMEGP Scheme 2026: Apply for Up to ₹50 Lakh Loan for Your Business
Complete guide to the Prime Minister's Employment Generation Programme (PMEGP). Learn about eligibility, subsidies up to 35%, and the online application process
The Prime Minister's Employment Generation Programme (PMEGP) is a flagship credit-linked subsidy scheme launched by the Ministry of Micro, Small and Medium Enterprises (MSME). It aims to generate employment opportunities in rural and urban areas by helping traditional artisans and unemployed youth set up self-employment ventures. Administered by Khadi and Village Industries Commission (KVIC), the scheme provides financial assistance through bank loans and significant government subsidies.
What is this scheme?
PMEGP is a merger of the Prime Minister's Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP). It provides subsidy ranging from 15% to 35% on projects costing up to ₹50 lakh for manufacturing and ₹20 lakh for the service sector. The scheme is implemented by KVIC at the national level and through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), and District Industries Centres (DICs) at the state level.
Who is eligible?
- Any individual above 18 years of age.
- Minimum 8th standard pass for manufacturing projects above ₹10 lakh and service projects above ₹5 lakh.
- Self Help Groups (SHGs) including those belonging to BPL.
- Institutions registered under Societies Registration Act, 1860.
- Production Co-operative Societies and Charitable Trusts.
- New units are eligible; existing units or those already receiving government subsidy are not eligible.
How much money?
The maximum project cost is ₹50 lakh for the Manufacturing sector and ₹20 lakh for the Service sector. Government subsidy (Margin Money) ranges from 15% to 25% for General category and 25% to 35% for Special categories (SC, ST, OBC, Minorities, Women, Ex-servicemen, PH, NER).
Documents needed
- Aadhaar Card
- PAN Card
- Project Report (Business Plan)
- Educational Qualification/Certificate of VIII Pass
- Caste Certificate (if applying under special category)
- Rural Area Certificate (if applicable)
- EDP Training Certificate (to be obtained after loan sanction)
- Passport size photographs
How to apply (step by step)
- Visit the official PMEGP e-Portal (KVIC online).
- Select 'Online Application Form for Individual' or 'Non-Individual' as applicable.
- Fill in the required personal and business details including the project cost and bank preference.
- Upload the required documents (Aadhaar, Project Report, etc.).
- Submit the application and download the 'Application Tracking ID'.
- The application is forwarded to the Nodal Agency/DIC for scrutiny and then to the bank for loan approval.
- Upon bank approval and field verification, the subsidy is released to a separate account (TDR) for a lock-in period of 3 years.
Important dates
| Event | Date |
|---|---|
| Application Deadline | Open throughout the year |
| EDP Training Duration | As per latest notification, verify on official portal |
Conclusion
The PMEGP scheme continues to be a cornerstone for fostering entrepreneurship in India. By providing both financial credit and heavy subsidies, it lowers the barrier to entry for first-time business owners. If you have a viable business idea and meet the educational criteria, PMEGP is one of the most effective ways to secure funding in 2026.
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