Government Loan Scheme – Prime Ministers Employment Generation Programme, PMEGP


Government Loan Scheme : PMEGP Scheme | PMMY 2022 | Jan Samarth Portal Explained in Hindi

PMEGP loan Full form :  

“Prime Ministers Employment Generation Programme”

The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy programme launched by the Ministry of MSME to generate employment opportunities in both rural and urban areas. With the help of PMEGP scheme, the Government offers subsidies up to 35% on the total project cost. The project cost covered is up to Rs. 20 lakh for service units and Rs. 50 lakh for manufacturing units.


PMEGP UPDATES. PMEGP modified Guidelines implemented from 01-June-2022 Click here to download. PMEGP e-PORTAL. Online EDP; Offline EDP · PMEGP DASHBOARD


If you want to do some business of your own, want to generate employment but you do not have money to work. So the government is running many such schemes under which you get easy loan and in that also the government gives you subsidy.

So today we will discuss many such Government Scheme’s which provide you loan with many benefits.

 What is PMEGP Scheme?

The credit-linked subsidy scheme known as PMEGP, or Prime Minister’s Job Creation Scheme, was first launched in 2008. Pradhan Mantri’s Rozgar Yojana and Rural Job Creation Initiative, two previous government programs with related objectives and benefits, don’t get attached to it. create GPMP. The main objective of these two programs and the PMEGP scheme is to provide rural and urban Indian entrepreneurs with the much needed financial incentives to start their businesses and businesses.

This program aims to support new businesses in the country and encourage employment among the youth of the country because of these businesses. The Ministry of Micro, Small and Medium Enterprises is responsible for the management of the PMEGP, while the Khadi and Village Industries Committee is responsible for overseeing its implementation across the country. Regional offices and banks are responsible for managing the program at the regional level.

Government Loan Scheme – PMEGP Scheme

PMEGP (Prime Minister’s Employment Generation Program) Scheme, if you speak in Hindi, then the Prime Minister’s Employment Loan Scheme.

So under this scheme you can take loan up to 1 crore from the government. Loan amount will depend on how much money is needed for the business you want to do.

Any bank will give you loan from anywhere, but the special thing about this scheme is that the government gives you 35% subsidy on the loan you will take.


PMEGP scheme- Eligibility, rates, online application, loan limits

How to make a PMEGP online application

  • To start with PMEGP online, apply via the e-portal
  • Click on ‘online application form for individual’/ ‘online application form for non-individual’
  • Fill out the entire form by entering details like name, sponsoring agency, type of activity, first financing bank and so on
  • When done, click on ‘save applicant data’
  • Then, upload documents and prepare for final submission
  • Post final submission, you will get an application ID and a password sent to your registered mobile number

The PMEGP scheme helps beneficiaries set up new projects but is nevertheless limited in its funding. To gain additional hassle-free funding without collateral, consider the Bajaj Finserv MSME Loan. Here you get financing of up to Rs. 20 lakh at economic interest rates. Further, you can apply for this loan with just a few documents and get a swift 24-hour loan disbursal once your application is approved.

To streamline your application and simplify the eligibility terms, check your pre-approved offer from Bajaj Finserv. Doing so gives you instant approval through a customised deal and helps you boost your business quickly.

Who can apply for a PMEGP loan?

Here is the list of persons who can apply for funding for new projects under the PMEGP scheme.

  • Any individual who is above 18 years of age
  • The person should have passed at least the 8th standard for a manufacturing sector project costing above Rs. 10 lakh, and a business/ service sector costing above Rs. 5 lakh
  • Self-help groups (even those falling under BPL provided that the SHG has not obtained benefits from another scheme)
  • Institutions registered under the Societies Registration Act,1860
  • Production co-operative societies
  • Charitable trusts

However, units already benefiting under a state or central government scheme cannot avail of a PMEGP loan.

What are the documents required when making a PMEGP loan application?

Here are some documents you may need to produce when applying for the PMEGP loan scheme:

  • Aadhaar card
  • PAN card
  • Project report
  • Special category certificate, if required
  • Rural area certificate
  • Education/ skill development training/ EDP certificate
  • Authorization letter

PMEGP Loan Scheme Condition

  • Anyone who is starting a new business of his own is eligible.
  • Business should be either manufacturing sector or service sector. Manufacturing means that you make a product and Service sector means that you only provide service like Parlour, Institute…. etc.
  • You will not get loan to open Bike or Car Showroom.
  • If you have a manufacturing company, then you will get a maximum loan of 25 lakhs.
  • If there is a service sector company, then a maximum loan of up to 10 lakhs will be available.
  • You must have 8th class pass to take loan.
  • There is no any Age Limit.
  • Under this scheme it is necessary for you to do EDP training only then you will get subsidy otherwise not. EDP ​​training is done many times before getting the loan and many times after getting the loan.
  • In their website, you will get all the details of EDP Training, when it will happen, where everything will happen. So you definitely have to.

PMEGP Scheme benefits

Subsidy benefit

if you live in the city

  • Those belonging to General Category will get 15% subsidy, and
  • If you belong to Reservation Category then you will get 25% subsidy.

If you live in the village, then

  • Those belonging to General Category will get 25% subsidy. And,
  • Those who belong to Reservation Category or if you are Physically Impaired will get 35% subsidy.

Margin Money

Whatever loan you want, the government will not give the full amount. You will also have to invest some money yourself.

  • If you belong to the General Category, you will have to apply 10% of the loan amount yourself.
  • Reservation Category, Ex-servicemen or physically disabled people will have to pay 5% of the loan amount themselves.

PMEGP Loan Scheme Apply Online

  • Step – 1: – First of all you have to go to the website of
  • Step – 2: – You will find PMEGP written on the top, click on it.
  • Step – 3: – Click on Apply button of Apply for New Unit.
  • Step – 4: – A form will appear in front of you, you have to fill it and upload whatever document is required.

To take a loan from a scheme, you have to submit a Project Report, in which you will have to give all the details that how much money is being spent on Machinery, how much money will be spent on Working Capital and you will have to tell how much money you will earn from this business in how many days. Will get If you have a good knowledge about all these, then it is a good thing that you can make it yourself, otherwise you can get this work done by any CA (Chartered Accountant).

Apart from this, many reports are already available in the website, you can learn by looking at them how the report is made. And you have to upload this report.

Business Upgradation Loan Scheme

This is the advance part of PMEGP Scheme. Now your business is running, you are able to earn money and whatever loan you had taken under PMEGP, you have repaid everything.

Now if you want to upgrade your business, then you can again take a loan of up to 1 crore under PMEGP. But some changes have been made in it, such as

  • Whatever you are, you will have to pay 10% Marginal Money.
  • You will get only 15% subsidy, no reservation.
  • Subsidy is 20% only for the people of North East.

Government Loan Scheme – Pradhan Mantri Mudra Yojana

Under the Pradhan Mantri Mudra Yojana, you can take a loan of up to 10 lakhs sitting at home. You get this loan without any processing fee without any guarantee.

How does the PMEGP Loan scheme work?

Prime Ministers Employment Generation Programme by insurance in hind
Prime Ministers Employment Generation Programme by insurance in hind

PMEGP like most of the other schemes has a designed and set layout of providing you with subsidies for your business. You can avail subsidies starting from 15% that can go up to 35%.

The criteria of how the subsidies are disbursed are divided into two categories, and they are :-

Rural: If your business is located in a rural area, and you belong under general category then you can avail subsidy on your business loan of about 25%, and if fall under SC/ST/Minority/Women entrepreneur and are located in a village then your subsidy can go up to 35%.

Urban: This scheme is also valid in cities, so if you are running a business in city and also looking for subsidies, then you can avail 15% subsidy on your business loan if you belong to the general category, however, if you fall under SC/ST/Minority/Women then your subsidy can go up to 25%.

This is how the Ministry of MSME is authorised to distribute the subsidies, to help the growing and new businesses by the Government of India.

Jan Samarth Portal

Government has recently started this portal. Its advantage is that it has 13 Governemnt Scheme’s and 4 Loan Categories. So you will be able to take loan under any scheme according to your eligibility.

You will not have to go round the bank. You will not have to check your eligibility again and again for different schemes. The whole process is going to be online.

How Jan Samarth Portal works?

Step – 1 :- First of all you have to come on Jan Samarth Portal.

Step – 2: – First of all you have to choose the category in which you want to take loan.

4 Loan Categories available है

  • Education Loan
  • Agri Infrastructure Loan
  • Business Activity Loan
  • Livelihood Loan

Step – 2: – Click on the Check Eligibility button of that category in which you want to take loan. Now he will ask you some of your details.

Step – 3: – All the schemes running in that loan category and the complete list of the scheme for which you are eligible will come.

Full details will come in front of you that how much loan will you get, how much subsidy you are getting, how much you will have to pay Monthly EMI and how much will be the tenure of the loan.

Step – 4: – Click on Apply Now for whatever scheme you want to apply for.

Step – 5: – A form will come, after that you have to give all the details about yourself and your business. As soon as you fill all your details, the button of “Submit Application” will appear in front of you.

Step – 6: – You have to click in Submit Application. After this, a list of some banks will appear in front of you that which bank is charging what interest rate and how much money it is offering.

Step – 7: – Click on the Select Offer of the bank from which you want to take the loan.

Step – 8: – Choose the city and state of the branch from which you want to take the loan.

Step – 9 :- After this your letter will be approved digitally. You can download

Step – 10: – You have to visit that branch and you will be sanctioned that loan.


Q: Are there any guidelines on fund utilisation?

Q: Can I get a PMEGP loan for a fast-food restaurant?

Q: How much does the PMEGP project report cost?

Q: What is margin money under the PMEGP scheme loan?

Q: Can I get a PMEGP loan while living in an urban region?

Q: What is the usual processing time of the PMEGP loan?

Q: How much margin money or government subsidy is applicable under the scheme?

Q: Are there any collateral requirements for the PMEGP loans?

Q: What is the maximum amount that one can avail of under the PMEGP loan scheme list?

Q: Who can apply for the PMEGP loan scheme list?


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