PMEGP Scheme: 35% subsidy on a ₹50 lakh loan—find out instantly if you qualify. Also, learn the easiest way to apply..

If you wish to start your own business but lack the funds for investment, do not worry. The government runs numerous schemes for MSMEs. Today, we will tell you about the special PMEGP (Prime Minister's Employment Generation Programme), which offers loans of up to ₹50 lakh along with substantial subsidies.

How much loan is available under the PMEGP scheme?
Two categories have been established for granting loans under the Prime Minister's Employment Generation Programme (PMEGP). Under this scheme, you can avail a loan of up to ₹50 lakh for manufacturing businesses and up to ₹20 lakh for service-sector businesses.

What subsidy is available on the loan?
Borrowers under the PMEGP scheme are divided into two main categories, which are further subdivided into two groups. The first is the general category, and the second comprises SC, ST, OBC, women, and persons with disabilities. Within these categories, there are distinct subsidy plans for rural and urban applicants.

Urban applicants in the general category receive a 15% subsidy, while those in the special category receive 25%. To promote rural employment, the plan offers a 25% subsidy to general-category rural entrepreneurs and a 35% subsidy to those in the special category.

Who is eligible for the PMEGP loan?
The benefits of this scheme are available to first-time entrepreneurs.
Applicants must be at least 18 years of age.
Applicants must have passed at least the 8th standard. You must not have availed of any subsidy previously.
Individual entrepreneurs, SHGs, and charitable trusts are eligible to apply.

Documents required for the PMEGP loan:
A comprehensive business plan
Aadhaar card
8th-grade pass certificate
Business project report

Certificate proving eligibility under a special category (if applicable)
Where to apply for the PMEGP loan:
Applications for the PMEGP loan are submitted online.
First, visit the Jan Samarth Portal.
Register using your mobile number and OTP.
Navigate to 'Business Activity Loan' and select PMEGP.
Answer the questions on the portal to check your eligibility.
Provide the required personal and business-related details.
Submit the details of the project report.

You will also have the option to select your preferred bank.
Upon submission, you will receive an Application Reference Number.
You can use this number to track the status of your application.
The bank will review the application; once approved, the loan and subsidy processing will proceed.

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