PMEGP: Launch Your Business with Just 8th Pass—Get ₹50 Lakh Loan, Up to 35% Subsidy & No Collateral

By Siddhi Jain | Jun 9, 2025, 22:16 IST

PMEGP Scheme 2025: A Golden Opportunity for Aspiring Entrepreneurs—₹50 Lakh Loan, Government Waives ₹300 Crore in Subsidy

The Government of India is creating a wave of self-employment opportunities for youth across the country through the Prime Minister’s Employment Generation Programme (PMEGP). This flagship scheme not only empowers people to start their own businesses but also enables them to become job providers, even with minimal educational qualifications.

Under PMEGP, individuals can avail loans of up to ₹50 lakh, with the government offering a subsidy of up to 35%. And the best part? Even candidates who have passed only Class 8 are eligible to apply!

What is PMEGP?

Launched in 2008, the Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme administered by the Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small and Medium Enterprises (MSME). The scheme aims to generate self-employment in non-farm sectors by providing financial assistance to micro-enterprises.

The initiative is a strong pillar of the government’s Atmanirbhar Bharat (Self-Reliant India) campaign, enabling individuals—especially from rural and semi-urban areas—to become entrepreneurs and stimulate local economic growth.

Key Features at a Glance

Loan Amount:
- Up to ₹50 lakh for manufacturing sector
- Up to ₹20 lakh for service/business sector
Government Subsidy:
- Ranges from 15% to 35% depending on category and location
Eligibility:
- Minimum qualification: 8th pass
- Age: 18 years and above
- New entrepreneurs, self-help groups, and institutions are eligible
Collateral:
- No collateral required for projects up to ₹10 lakh
- Credit is provided through nationalized and regional banks
Application Process:
- Online application via the KVIC PMEGP Portal

Massive Impact: ₹300 Crore Subsidy Already Disbursed

According to KVIC Chairman Manoj Kumar, the PMEGP has already disbursed over ₹300 crore in subsidy to more than 8,794 beneficiaries across the country. So far, a total of ₹884 crore in loans has been sanctioned through this scheme.

The data reveals how this program is changing lives and supporting micro-entrepreneurs. With 10.18 lakh micro-enterprises established since its inception, PMEGP has played a vital role in generating over 90 lakh employment opportunities nationwide.

Zone-wise Distribution of Projects & Funds

The PMEGP scheme is operational across all six zones in India. Here's a quick overview:

Zone	States Covered	Projects Approved	Funds Disbursed (₹ Crore)
South	Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Puducherry	2,445	80.26
Central	UP, MP, Chhattisgarh, Uttarakhand	2,366	91.13
East & NE	Bihar, Jharkhand, Odisha, WB, NE states	2,167	62.68
North	Haryana, Punjab, J&K, Ladakh, Himachal, Rajasthan	1,320	41.80
West	Gujarat, Maharashtra, Goa	496	24.12

Who Can Apply?

The scheme is especially designed for:

Rural youth
Women entrepreneurs
Minorities and SC/ST communities
8th pass individuals with basic business ideas

This makes PMEGP one of the most inclusive entrepreneurship programs in India today.

Success Story in Numbers

Since 2008:

10.18 lakh enterprises launched
₹73,348 crore sanctioned in loans
₹27,166 crore in subsidies disbursed
90+ lakh jobs created

How to Apply?

Visit the official website: kviconline.gov.in
Register as an applicant and submit your business proposal
Complete training if required (mandatory in some cases)
Submit required documents and await bank approval

Final Thoughts

Whether you’re a young graduate, a rural entrepreneur, or someone with just an 8th-grade education, PMEGP opens the door to financial independence and business ownership. The generous subsidies and collateral-free structure make it the ideal platform for first-time entrepreneurs.

With over ₹300 crore in government subsidies already granted, now is the perfect time to explore PMEGP and take the first step towards becoming your own boss.