PMEGP Loan Scheme

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Created by Er K.N. Singh


images for PMEGP Loan Scheme
PMEGP Loan Scheme


Earlier there were running two schemes by India Govt. for unemployed youth. One of them was a REGP scheme – Rural Employment Generation Programme for the rural area, governed by KVIC and the second was PMEGP- Prime Minister Employment Generation Programme for urban areas governed by the industry department.  Name PMEGP merged latter on both the schemes as on 31/03/2008. This program is governed by the Ministry of Micro, Medium and small enterprise, the government of India. Noodle agency of this scheme is KVIC– Khadi and Village Industries Commission at the national level for implementing this scheme. This scheme at the district level the implementing agencies are KVIC, KVIB, COIR, and DIC


India is a big country with a big economy too. But it has a major problem with youth unemployment. Govt. has no sector where he can boost employment for this majority of youth. Only the industry sector and service sector is the place where unemployed youth can get their future adjusted. Keeping in mind to generate employment, India Govt. has launched a scheme named PMEGP Scheme. It means Prime Minister Employment Generation Program. This scheme provides scope to generate employment for the un-employee youth. This scheme is a credited linked subsidy program. The scheme is implemented by Khadi and Village Industries Commission, as a nodal agency at the national level.

Image for PMEGP Loan Scheme
PMEGP Loan Scheme


  1. To generate employment opportunities for rural and urban areas by setting up a new own enterprise.
  2. To provide continuous and long-term employment to artisans and unemployed youth.
  3. To generate revenue and grew up the conditions of rural and urban unemployed youth.

Scope of PMEGP

  • The scheme applies to all technically and economically viable projects for rural and urban areas.
  • The maximum cost of the project under the manufacturing sector is Rs.25 lakhs and the business/services sector is Rs.10 lakhs.

    Mudra Loan Scheme

  • Only one person from a family is eligible for this scheme.
  • Finance and subsidy under this scheme are available only for new projects.
  • It does not allow the schemes under negative lists in this scheme.

Entrepreneurs Eligible  for PMEGP

  1. He should be Indian.
  2. Entrepreneurs above 18 years of age are eligible for this scheme.
  3. Entrepreneurs should be at least VIII standard passed for this scheme.
  4. Institutions registered under Societies Registration Act,1860 are eligible for this scheme.
  5. Self-Help Groups will be allowed that have availed not benefits under any other Scheme.
  6. Co-operative Societies registered for productions are eligible.
  7. Charitable Trusts are also eligible for this scheme.

Note for PMEGP

The existing units and the units that have already availed Government Subsidy under any other schemes are not eligible for this scheme.

How will be selected the beneficiary for PMEGP LOAN SCHEME

  1. The beneficiary with all required documents will apply online.
  2. He will call to face the district-level Task Force committee.
  3. In this committee, there are representatives from KVIC/State KVIB/ State DICs and Banks.
  4. The chairperson is District Magistrate / Deputy Commissioner / Collector concerned.
  5. After selection from Task Force Committee, it forward sanctions letter to the concerned bank.
  6. The entrepreneur will contact the said bank to avail of the loan.
  1. It requires all original documents for the sanction of the loan.
  2. Above 10.00 lakhs may Bank take collateral securities but it is on the Bank but unnecessary.
  3. It will cover financed units under the Credit Guarantee Fund scheme.
  4. Passport-size photo.
  5. ADHAR CARD of the beneficiary ( mandatory).
  6. He should have a PAN card.
  7. Qualification certificate.
  8. NOC from Mukhia/ward Councillor.
  9. Project report of the scheme.
  10. Cast certificate except for general caste.
  11. Registered societies under Societies Registration Act,1860.
  12. Registered Production Co-operative Societies.
  13. Registered Charitable Trusts.
The process to apply for the PMEGP loan scheme
image for PMEGP Loan Scheme
PMEGP Loan Scheme

Follow the steps below showed:-

First,  click on this link – APPLY ONLINE HERE

  1. Fill your Adhar number.
  2. Select Sri. /Smt./ Kumari as the case may be.
  3. Fill your name as per the Adhar card.
  4. Click for validation of Adhar.
  5. Select sponsoring authority one of the -KVIC/KVIB/DIC/COIR Board.
  6. Select the state in which you live and the unit to be set up.
  7. Select the district in which the unit will be set.
  8. Click on the office address of selected sponsoring authority.
  9. Select gender- Male/ Female/ Transgender.
  10. Fill your date of birth as per your educational certificate – such as – date-month-year.
  11. Select your social category general/ OBC/ SC/ ST/ Minority.
  12. Select your qualifications.
  13. Full details of your communications address.
  14. Fill your block name.
  15. Fill your PIN number.
  16. Fill your mobile numbers.
  17. Fill your email id.
  18. Fill your PAN number.
  19. Select your unit location-rural or urban.
  20. Fill address of your unit location, if the unit location is the same as your communicational address, then click on copy to communication address.
  21. Select the type of activity- one of these here – manufacturing/service/ trading.
  22. Select training if you have done then – yes and no if you have not done.
  23. Fill project cost details as per the project report.
  24. Select Bank name and IFS code from where you want to take a loan.
  25. You may select the alternate bank with IFS code.
  26. Then click on save application data.
  27. Now it will go on the next page to upload the necessary documents.
  28. After uploading the required documents click on the final submission button. Here it will take some time in final submitting.
  29. Then appear the printing option.
  30. Lastly, click for printing and print the final application.


Created by Er. K. N. Singh

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