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Introduction to PMEGP Yojana
The PMEGP Yojana, or Prime Minister’s Employment Generation Programme, is a flagship scheme by the Government of India. It aims to create self-employment opportunities through new microenterprises. CGTMSE Loan Scheme 2026: Unlock Collateral-Free Funding Up to ₹5 Crore
Launched in 2008 by merging earlier schemes, it is implemented by the Khadi and Village Industries Commission (KVIC). In 2026, the scheme continues to support startups in manufacturing, services, and business sectors with enhanced digital features. Stand-Up India Scheme Loans in 2026: Up to ₹2 Crore for Women & SC/ST Entrepreneurs
PMEGP provides credit-linked subsidies to help individuals and groups set up ventures. It targets unemployed youth, women, and rural artisans. Over 8 lakh units have been assisted, generating millions of jobs.
Loans are facilitated through banks, with subsidies ranging from 15% to 35%. This makes it accessible for first-time entrepreneurs. The scheme aligns with Atmanirbhar Bharat, promoting local production and economic growth.
Why Choose PMEGP Yojana?
PMEGP stands out for its subsidy component, reducing financial burden. Loans up to ₹50 lakh for manufacturing and ₹20 lakh for services/business. No collateral for smaller amounts. Interest rates are bank-linked, around 8-12%. In 2026, online portals like KVIC e-Portal and JanSamarth make the application seamless.
It’s ideal for rural and urban setups. Special categories like SC/ST, women, and ex-servicemen get higher subsidies. This encourages inclusive entrepreneurship. Beneficiaries report steady income from ventures like food processing or handicrafts.
Benefits of PMEGP Yojana
Subsidies cut project costs significantly. Training and handholding provided. Links with skill development programs. Boosts local economies.
Key Advantages Table
| Advantage | Description |
|---|---|
| High Subsidy | 15-35% on project cost. |
| Loan Limits | Up to ₹50 lakh manufacturing. |
| No Income Ceiling | Open to all above 18. |
| Job Creation | Focus on employment generation. |
| Digital Apply | Easy online process. |
Key Features of PMEGP Yojana
PMEGP covers new units only. Project cost includes capital expenditure and one cycle of working capital.
Subsidy Structure
Subsidy varies by location and category.
Subsidy Details Table
| Category | Urban Subsidy % | Rural Subsidy % |
|---|---|---|
| General | 15% | 25% |
| Special (SC/ST/Women/etc.) | 25% | 35% |
Loan and Margin Money
Borrower contributes 5-10% margin. Bank finances 90-95%. Subsidy adjusted against loan.
Eligibility for PMEGP Yojana
Any individual above 18 years qualifies. No education or income limit. For groups: SHGs, societies, trusts eligible if not availing other subsidies.
Eligibility Criteria
- Age: 18+.
- For units over ₹10 lakh manufacturing/₹5 lakh services: 8th pass or training.
- New enterprises only.
- Not for existing units or defaulters.
Interest Rates and Charges
Rates as per bank policy, typically 8-12%. No processing fee often. Subsidy released after verification.
Interest Rate Table
| Loan Type | Rate Range |
|---|---|
| Manufacturing | 8-11% |
| Services/Business | 9-12% |
How to Apply for PMEGP Yojana
Apply online via KVIC portal or JanSamarth.
Application Process
- Visit kviconline.gov.in/pmegpeportal.
- Register and fill form.
- Upload project report, docs.
- Select bank.
- Submit. EAC reviews.
- Bank appraises and sanctions.
Offline: Submit to KVIC/DIC offices.
Required Documents
Essential papers.
Documents Checklist Table
| Document | Purpose |
|---|---|
| Aadhaar/PAN | ID Proof. |
| Project Report | Business Plan. |
| Caste Certificate | For Special Category. |
| Bank Details | Loan Account. |
| Photos | Applicant. |
Link with Other Schemes
PMEGP integrates with Mudra, Stand-Up India for extra finance. Skill India for training.
Participating Banks and Agencies
Banks like SBI, PNB. Nodal: KVIC, KVIB, DIC.
Agency Roles Table
| Agency | Role |
|---|---|
| KVIC | National Implementation. |
| KVIB | State Level. |
| DIC | District Coordination. |
Benefits for Different Categories
Women get 25-35% subsidy. SC/ST higher priority. Rural areas favored.
Challenges and Tips
Delays in subsidy release. Competition high.
Tips: Prepare detailed project report. Attend EDP training. Monitor application status.
Risk Management
Choose viable project. Insure assets. Repay timely.
Costs and Earnings
Project cost ₹5-20 lakh average. Subsidy saves ₹1-7 lakh. Earnings: Food unit ₹50,000/month.
Cost Breakdown Table
| Item | Cost Range |
|---|---|
| Machinery | ₹2-10 lakh. |
| Working Capital | ₹1-5 lakh. |
Success Stories
Many beneficiaries scaled up. A woman started spice unit with ₹10 lakh loan, now employs 10.
Future in 2026
Digital enhancements. Higher targets for jobs.
Conclusion
PMEGP empowers dreams. Apply today.
FAQ Section
What is PMEGP Yojana?
Scheme for self-employment with subsidy.
Maximum Loan?
₹50 lakh manufacturing.
Subsidy Amount?
15-35%.
Eligibility?
18+, new units.
Documents Needed?
Aadhaar, project report.
How to Apply?
Online KVIC portal.
Processing Time?
1-3 months.
Collateral Required?
No for small.
Special for Women?
Higher subsidy.
Repayment Period?
5-7 years.
FAQ Table
| Question | Answer |
|---|---|
| Max Loan | ₹50 Lakh |
| Subsidy | 15-35% |
| Eligibility | 18+ |
| Documents | Aadhaar, Report |
| Apply | Online |
| Time | 1-3 Months |
| Collateral | No |
| Women Help | Higher % |
| Repayment | 5-7 Years |
| Agencies | KVIC/DIC |