Objectives

• Promote self-employment through setting up micro enterprises in rural and urban areas. MSME Ministry

• Provide credit-linked subsidy to reduce upfront cost for beneficiaries.

• Generate sustainable employment opportunities in manufacturing and service sectors.

Eligibility Criteria

• Who can apply: Any Indian individual above 18 years; existing units seeking expansion may apply under specific conditions. SHGs and institutions can also be beneficiaries through implementing agencies.

• Age limit: Minimum 18 years. For projects above certain cost thresholds, minimum educational/technical qualification may apply (check detailed guidelines).

• Income limit: No fixed income ceiling for general assistance (as per guidelines), but some project size rules apply.

• Other conditions: For manufacturing projects costing above ₹10 lakh (manufacturing) or ₹5 lakh (business/service), beneficiaries may need prescribed qualifications — check latest guideline clause. Projects must be viable and bank-sanctionable.

Benefits of the Scheme

• Monetary support / subsidy: Interest subsidy is not direct — instead PMEGP provides a margin (capital) subsidy which is reimbursed to the lending bank. Subsidy rates vary (example: up to 35% for special categories in rural areas; around 25% urban for reserved categories; ~15% for general categories — refer to official schedule). Exact % depends on category (SC/ST/Women/Minorities/Transgender/Ex-Servicemen) and rural/urban location.

• Loan limits: Loans are bank-sanctioned; typical upper limits: manufacturing projects up to ₹50 lakh and service/retail up to ₹20 lakh (confirm current maxima with bank/portal). KVIC Online+1

• Frequency: One-time subsidy tied to the sanctioned loan at project setup. Ongoing benefits depend on bank loan repayment terms. MSME Ministry

• Special benefits: Preferential subsidy % and reservation in allocations for SC/ST/Women/Minorities/Transgenders and other special categories.

Documents Required

Common documents for online application (scan & upload):

• Aadhaar Card (Aadhaar.pdf) — identity & address proof. KVIC Online

• Passport size photo (Photo.jpg / Photo.png).

• Educational qualification proof (if required) — e.g., Diploma.pdf.

• Project Report / Project Profile (ProjectReport.pdf).

• Caste / Special Category certificate (if applicable) (SC_ST_WOMEN.pdf).

• Residence certificate / Rural area certificate (if applying under rural quota).

• Bank account passbook copy (BankPassbook.pdf).

• Any other documents asked by the implementing agency (KVIC/KVIB/DIC) or the bank.

File formats & naming suggestions: PDF/JPG/PNG. Keep each file ≤ 1 MB where portal specifies (many portal pages state scanned docs upto 1 MB). Suggested names: Aadhaar.pdf, Photo.jpg, ProjectReport.pdf, IncomeCertificate.jpg.

How to Apply

Online process (recommended):

1. Visit PMEGP online application portal run by KVIC: PMEGP Online Application page.

   • Direct portal (KVIC): https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp.

2. Register with Aadhaar / EID as per portal instructions. Fill applicant details, category, project profile and upload scanned documents.

3. Choose Sponsoring Agency (KVIC / KVIB / DIC / Coir Board as applicable).

4. Submit application → receive application ID. Track status on portal or via DIC/KVIC office.

5. After in-principle approval, submit bank loan application with required documents; bank sanctions loan and subsidy is reimbursed to the bank per rules.

Offline process (if available):

• Download application form from KVIC/DIC/KVIB office or website (if published), fill and submit at nearest KVIC / KVIB / DIC office along with required documents. Banks may accept project proposals through implementing agencies. Confirm with local DIC/KVIC office.

Tips:

• Keep scanned files under portal size limits (many pages say ≤1 MB).

• Use clear, legible project profile — banks assess viability.

• Don’t submit multiple duplicate applications (portal/agency may reject duplicates).

Important Dates (H2)

• Application start date / windows: PMEGP works in financial-year allocations; portal windows may open/close per central instructions. Check the online portal / local implementing agency for current application window.

• Last date: Varies by cycle — confirm on portal (KVIC/DIC/KVIB) before applying.

Application Fee

• No Fee for applying on portal (PMEGP application is generally free). Any bank processing charges apply only after bank sanction (normal bank rules). Confirm with the lending bank.

Selection Process

• Technical and financial scrutiny by Implementing Agency (KVIC/KVIB/DIC).

• Bank appraisal of project and credit assessment. Bank sanctions loan based on viability and borrower credentials.

• Subsidy amount is reimbursed to bank after loan disbursement as per guidelines.

Common Mistakes to Avoid

• Submitting incomplete or illegible documents.

• Not uploading the proper Project Report / mismatch with bank form.

• Missing the application window or last date (check portal).

• Multiple duplicate applications — may cause rejection/delay.

Comparison with Similar Schemes

• PMEGP vs. MUDRA Loan: PMEGP is a credit-linked subsidy program with government reimbursement to banks (focus on micro units with subsidy), while MUDRA provides collateral-free loans under different categories (Shishu/Kishore/Tarun) without direct central margin subsidy.

• PMEGP vs. Stand Up India: Stand Up India focuses on SC/ST & women entrepreneurs with bank credit for specific project ranges; PMEGP is broader (includes multiple special categories and has structured subsidy components).