PMEGP Loan: Application Process, Eligibility, and Benefits

Recent Development: The Prime Minister’s Employment Generation Programme (PMEGP) is a government scheme aimed at extending financial aid to medium and small-scale enterprises in India.

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Online Application for PMEGP Loan

Individuals interested in availing the PMEGP loan can conveniently apply online through the official website,, without incurring any application fees.

Eligibility Criteria for PMEGP Loan

PMEGP Loan: Application Process, Eligibility, and Benefits

Applicants must fulfill specific requirements, including being at least 18 years old, possessing a valid UID number, and having a minimum educational qualification of 8th grade for projects exceeding Rs 10 lakhs in the manufacturing sector and Rs 5 lakhs in the business/service sector.

Documents Required for PMEGP Loan Application

During the application process, applicants need to submit various documents, including their highest educational qualification certificate, passport-sized photograph, summary/detailed project report, social/special category certificate (if applicable), rural area certificate, and proof of residence.

Steps to Apply for PMEGP Loan

The application procedure entails visiting the official website, completing the application form with relevant details, saving the applicant’s data, and uploading the necessary documents before final submission.

Benefits of PMEGP Loan

Successful applicants stand to benefit from employment generation opportunities with loan amounts of up to 50 lakhs, facilitating self-employment and self-reliant development.

Key Features of PMEGP Loan

Under the PMEGP loan scheme, the government provides assistance of 15% to 30% as margin money or subsidy, while banks sanction funding up to 95% of the project cost. Banks also offer the remaining 60% to 75% as a term loan and working capital, with interest rates ranging from 11% to 12%.


The PMEGP loan scheme serves as crucial financial support for economically disadvantaged individuals and the unemployed, leading to an overall enhancement in their standard of living and economic welfare.

Frequently Asked Questions (FAQs)

  1. Who is eligible to apply for the PMEGP Loan?
    Individuals aged 18 and above with a valid UID number can apply for the PMEGP loan.
  2. What are the advantages of the PMEGP Loan?
    The PMEGP loan offers benefits such as employment creation, empowerment for self-employment, and financial assistance of up to 50 lakhs.
  3. What is the application process for the PMEGP Loan?
    The application process involves visiting the official website, completing the form, and uploading the required documents before submission.

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