Willing to set up a business! Then you are eligible for rupees 25 lakh | PMEGP

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In this post we are discussing about Prime Ministers Employment Generation Program (PMEGP). PMEGP is a Central Government aid to the individual or the group who wish to set an own business. Such individual or group can avail a loan of rupees 25 lakh. This Program is implemented to promote new entrepreneurs to start their own entrepreneurship.

This scheme is implemented by Khadi and Village Industries Commission (KVIC). This program is the merger of the two already existed schemes namely Prime Ministers Rojgar Yojana and Rural Employment Generation Program.

Who can Apply

Any Individual with the age of 18 years and more can apply for this loan.  And VIII Std. pass required for project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs for Service Sector. There is no restriction in this scheme regarding the income group of the applicant. and also the scheme does not specify any information regarding the educational qualification of the applicant.

Also read >> How to apply Mudra Yojana loan 2020

The industries operating in the manufacturing sector can get a maximum of rupees twenty five lakhs and for the units operating in service sector is entitled an amount of rupees ten lakh.

The applicants are categorized as General category and Special Category. The individual who include in the general category should brought 10 percentage of capital while the special category candidates(women, OBS, SC, ST) are need only to bring 5% of the capital. Moreover there is a subsidy available to the loan holders.


General Special
Town Area 15% 25%
Rural Area 25% 35%

This subsidy is the main advantage of this scheme. and other specification of this scheme are;

  • Available only to set up a new unit. Will not be available to expanding existing unit.\
  • Not available for Partnership and for company
  • Agriculture, Farm to set up such like units, the loan is not available.

Lets look how to apply for the loan. The loan is provide through Khadi and Village Industries Commission Board. The individual can apply online through the website of Khadi and Village Industries Commission Board. The application must include, the School Certificate of the applicant, Project Report, Aadhar Card, Caste Certificate and Rural Area Certificate if the project is undertaken in rural area are also enclosed with the application.

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