PMEGP Govt Loan: The PMEGP (Prime Ministers Employment Generation Programme) is a funding initiative that helps MSMEs in expanding or stabilizing their current businesses. Individuals who want to start a new business can also get this loan.

The initiative is implemented by the Khadi and Village Industries Commission (KVIC), which serves as the national nodal body. State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks operate the plan at the state level. In such circumstances, KVIC routes government subsidies through selected banks, with the funds eventually being sent directly to the recipients/entrepreneurs’ bank accounts.

PMEGP Scheme: Loan Structure
The maximum cost of the project/unit allowable in the construction sector is Rs.25 lakh and in the business/service sector it is Rs.10 lakh.
Beneficiary rate subsidy categories under the PMEGP (of project cost)
Area (Project/Unit Location)
General Category: 15% (Urban), 25% (Rural),
Special Category: 25% (Urban), 35% (Rural)
(This includes SC/ST/OBC/Minorities/Women, Ex-Servicemen, Physically Handicapped, NER, Hilly and Border Areas, and so on.)

Banks will supply the remaining portion of the overall project cost in the form of a term loan and working capital.

PMEGP Scheme: Who can apply?
Any person over the age of 18 can apply, but he or she must have completed at least VIII standard for projects costing more than Rs. 10 lakh in the manufacturing sector and more than Rs. 5 lakh in the commercial/service sector. Under the PMEGP, only new projects are examined for approval. Institutions registered under the Societies Registration Act, 1860; Production Co-operative Societies, and Charitable Trusts are also eligible.
Existing units (under PMRY, REGP, or any other Government of India or State Government plan) and units that have previously received Government Subsidy under any other Government of India or State Government programme are not eligible.

PMEGP Scheme: How to apply?
In consultation with KVIB and the Director of Industries of respective states (for DICs), the State/Divisional Directors of KVIC will advertise locally in print and electronic media, inviting applications and project proposals from prospective beneficiaries interested in establishing a business or starting a service unit under the PMEGP.
The beneficiaries can also submit their application online at and take the printout of the application and submit the same to respective offices along with the Detailed Project Report and other required documents.

Whom to contact?
State Director, KVIC
Address available at
Dy. CEO (PMEGP), KVIC, Mumbai
Ph: 022-26711017
Email: ykbaramatikar[dot]kvic[at]gov[dot]in

Note: For any queries and details visit the official website.

作者 Ambition