🏭 PMEGP

PMEGP Loan 2026 — Up to Rs 50 Lakh for New Business, How to Apply via Jan Samarth

By FinMandi Research Team·June 2026·✓ Updated June 2026

🔍 Reviewed by FinMandi Research Team·✓ Sourced from official government portals·✓ Updated June 2026

⚡ PMEGP at a Glance

Full name: Prime Minister's Employment Generation Programme
Implementing agency: KVIC (Khadi and Village Industries Commission)
Max loan — Manufacturing: Rs 50 lakh
Max loan — Service/Trading: Rs 20 lakh
Subsidy: 15% to 35% of project cost (not a loan — free money from govt)
Apply via: kviconline.gov.in or Jan Samarth portal

What is PMEGP?

PMEGP (Prime Minister's Employment Generation Programme) is a credit-linked subsidy scheme that helps unemployed youth and traditional artisans set up new micro enterprises. The government gives a direct capital subsidy of 15% to 35% of the project cost — this money does not need to be repaid. The remaining amount is a bank loan at normal rates.

Who is Eligible for PMEGP?

Any Indian above 18 years of age
For projects above Rs 10 lakh (manufacturing) or Rs 5 lakh (service), minimum Class 8 pass required
Self Help Groups (SHGs), Charitable Trusts, Production Cooperative Societies also eligible
Only new businesses — existing businesses cannot apply
Beneficiary must not have availed any other central government subsidy scheme

Subsidy Rates Under PMEGP 2026

Category	Urban Area Subsidy	Rural Area Subsidy
General category	15% of project cost	25% of project cost
Special category (SC/ST/OBC/Women/Ex-servicemen/Minorities/PH/NE)	25% of project cost	35% of project cost

Example: A woman entrepreneur in a rural area sets up a food processing unit for Rs 20 lakh. Government subsidy = 35% = Rs 7 lakh (free). Bank loan = Rs 13 lakh. Her own contribution = Rs 2 lakh (10% of project cost). She repays only the Rs 13 lakh bank loan.

What Businesses Qualify Under PMEGP?

Food processing, agro-based industries
Textile, handloom, handicrafts
Mineral-based products, polymer products
Rural engineering and bio-technology
Service sector: beauty salon, repair shop, tailoring, catering
Trading businesses are eligible for the service category

⚠️ Not eligible: Meat/fish/poultry processing, tobacco products, intoxicant items, any industry involving animal slaughter, hospitality/hotels, polythene carry bags. Check the KVIC negative list before planning your project.

Documents Required for PMEGP

Aadhaar card

PAN card

Educational qualification certificate (Class 8 minimum for higher loans)

Caste/special category certificate (if applicable)

Project report (Detailed Project Report — DPR)

Skill training certificate (if any — EDP training preferred)

Passport-size photograph

Bank account details

💡 Project Report (DPR) is critical. The bank evaluates your loan primarily based on the project report. KVIC offices provide free assistance in preparing DPR. Contact your district KVIC office before applying.

How to Apply for PMEGP — Step by Step

Prepare your project reportDecide your business, calculate project cost, get help from KVIC district office if needed.

Apply online at kviconline.gov.inGo to PMEGP e-Portal. Register and fill the application form with project details.

Or apply via Jan Samarth portalVisit jansamarth.in, select Business/Livelihood category, choose PMEGP and complete the application.

Application forwarded to KVIC/KVIB/DICYour application goes to the implementing agency — KVIC, Khadi Board or District Industries Centre depending on your business type.

Interview and verificationAgency conducts interview and site verification. Attend EDP (Entrepreneur Development Programme) training — mandatory for subsidy release.

Bank sanction and disbursementApproved application forwarded to bank. Bank sanctions loan. Subsidy held in term deposit initially, released after 3 years of successful operation.

Official Sources

🏭 kviconline.gov.in (KVIC Portal) → 🤝 jansamarth.in →

🤝 Jan Samarth Complete Guide →PM Mudra Loan Guide

Frequently Asked Questions

Mudra loan is for existing micro businesses wanting working capital or expansion — no subsidy, just a loan. PMEGP is for new businesses only and includes a government subsidy of 15–35% of project cost that does not need to be repaid. PMEGP requires a detailed project report; Mudra is simpler.

Yes. Entrepreneur Development Programme (EDP) training is mandatory before the subsidy is released. KVIC and its state counterparts conduct free EDP training. The training is typically 2 weeks long and covers basic business management, accounting and government scheme details.

The PMEGP process typically takes 2–4 months from application to disbursement — longer than Mudra loans because it involves agency interview, EDP training and bank sanction. Plan accordingly and apply well before you need the funds.

Yes. Women applicants are in the special category and receive 25% subsidy in urban areas and 35% in rural areas. This is higher than the general category. Women entrepreneurs are given priority in the selection process by most KVIC district offices.

⚠️ Disclaimer: All scheme details are based on publicly available information from official government portals as of June 2026. Eligibility criteria, subsidy amounts and processes may change. FinMandi is an independent information platform and is not affiliated with the Government of India or any bank. Always verify current scheme details on the official portals before applying.