The Prime Minister’s Employment Generation Programme (PMEGP) is a government scheme started to help unemployed young people in India start their own businesses by offering loans from ₹10,000 to ₹25 lakh.
This scheme supports young people from both rural and urban areas. In 2025, the government aims to provide loans to as many people as possible under PMEGP. This article will explain how you can apply, what documents you need, and who can benefit from PMEGP.
If you are an unemployed young person wanting to start your own business, this scheme is a great chance to get financial support.
PMEGP Loan Scheme 2025
Under the PMEGP Loan Scheme 2025, interested people who want to start their own work can apply for a loan from the central government. To apply, you must be over 18 years old and meet other eligibility requirements.
Organizations registered under the Societies Registration Act, 1860 may also be able to get help through PMEGP. Loan subsidy depends on your category. This makes starting your business easier and more affordable.
Latest Update: The government has extended the PMEGP scheme till the financial year 2025-26 with a budget of ₹13554.42 crore. Around 40 lakh people are expected to benefit from this extension. This scheme aims to provide employment by helping set up micro-enterprises in non-agriculture sectors across the country.
Recent changes include increasing the maximum project cost limit for manufacturing units from ₹25 lakh to ₹50 lakh and for service units from ₹10 lakh to ₹20 lakh. Transgender applicants receive special category benefits with higher subsidy.
Main Details of PMEGP Scheme
| Scheme Name | PMEGP Scheme |
| Launched by | Central Government |
| Beneficiaries | Unemployed youth of India |
| Objective | Providing loans for employment |
| Application Method | Online |
| Official Website | https://www.kviconline.gov.in/ |
PMEGP Subsidy Details
- General category unemployed youth get a 25% subsidy in rural areas and 15% in urban areas, with 10% self-contribution.
- Special categories like SC, ST, OBC, ex-servicemen get 35% subsidy in rural and 25% in urban areas with 5% self-contribution.
Purpose of PMEGP Scheme
Unemployment is common in both rural and urban India. The PMEGP scheme aims to address this by giving loans to unemployed citizens to start their own businesses. This will reduce unemployment and help people become independent.
Main Points for PMEGP Scheme
- Backwardness of the state
- Population of the state
- Availability of traditional skills and raw materials
- Unemployment rate in the state
- 75 projects awarded per district
- Increased subsidy for women, SC, ST, OBC, physically disabled, and North East Region applicants
- The entire process is online
- From application to receiving funds, all steps happen online
Subsidy Amount Table
| Category | Urban Area | Rural Area | Own Contribution |
| General Category | 15% of project cost | 25% of project cost | 10% of project cost |
| SC, ST, OBC, Minority, Women, Physically Handicapped, Ex-Servicemen, Hill & Border Areas, NER, etc. | 25% of project cost | 35% of project cost | 5% of project cost |
Benefits of PMEGP Scheme 2025
- Loans from ₹10 lakh to ₹25 lakh to help unemployed youth start their own businesses.
- Loans come with subsidies based on caste and area.
- Both rural and urban unemployed can apply.
- District Industrial Centres (DIC) handle urban applications; Khadi and Village Industries Commission (KVIC) manages rural applications.
- Scheme is only for new businesses; existing businesses are not eligible.
Types of Industries Supported under PMEGP 2025
- Forest-based industries
- Mineral-based industries
- Food processing
- Agriculture-based industries
- Engineering
- Chemical industries
- Textile industries (except Khadi)
- Service industries
- Non-traditional energy projects
Pradhan Mantri Fasal Bima Yojana
Eligible Categories for PMEGP
- Scheduled Caste (SC)
- Ex-servicemen
- Scheduled Tribe (ST)
- Physically Disabled
- Other Backward Classes (OBC)
- People from Northeastern states
- Minorities
- People living in border and hilly areas
- Women
Eligibility Criteria for PMEGP Scheme
- Applicant must be an Indian resident.
- Minimum age 18 years.
- Must have at least 8th pass education.
- Loan is only for starting new business, not for existing businesses.
- Priority given to those who have received government training.
- Applicants already receiving other subsidy benefits are not eligible.
- Cooperative and charitable institutions are also eligible.
Required Documents
- Aadhar card
- PAN card
- Caste certificate
- Residence proof
- Educational qualification certificate
- Mobile number
- Passport size photograph
How to Apply for PMEGP Scheme 2025?
Follow these steps to apply online for the PMEGP Loan Scheme 2025:
Step 1: Visit the Official Website
- Go to the KVIC official website. The home page will open.
- Click on the PMEGP Option.
- Open the PMEGP E-Portal link.
- Choose Online Application Form for Individual.
- Fill the registration form with details like Aadhar number, name, state, district, gender, qualification, mobile number, email, PAN number, date of birth, address, etc.
- Click Save Applicant Data.
- Print the form and submit it to the nearest KVIC, KVIB, or DIC office depending on your loan application.
Step 2: Interview and Approval
- The nodal agency will call you for an interview.
- If your project is selected, the agency will send details to the bank.
- You must submit all documents to the bank.
- The bank will visit the project location and process your loan application.
- After approval, your loan amount and subsidy will be given.
- You must also complete Entrepreneurship Development Programme (EDP) training and submit the certificate to both the bank and agency.
Application for Individuals and Non-Individuals
- Individuals apply using the Online Application Form for Individual link.
- Non-individuals (organizations) use the Online Application Form for Non-Individual link, select category, fill the form, upload documents, and submit.
How to Apply for a Second Loan?
- Visit the official PMEGP website.
- Click on Apply Online Form Second Loan.
- Fill in required details and upload documents.
- Submit the form online.
Login Processes
- Registered applicants can login at the official website using their user ID and password.
- Banks and agencies also have separate login portals.
- You can check your status, submit complaints, see notifications, and view dashboard details online.
How to Download PMEGP Project and Model Project PDFs
- Visit the official website.
- Click on Download Project, Potential Project, or Download Model Project links.
- View and download the project details in PDF format.
Online EDP Training Application
- Go to the official website and click on Online EDP option.
- Click Click here for Online EDP Training.
- Fill in the required information and upload documents.
- Submit the form to register for training.
Additional Resources
- You can view circulars like Scorecard Circular, Modified EDP Circular, and COVID-19 Circular online.
- Contact lists and complaint status can be checked on the website.
- Feedback submission and reports are also available there.
Contact Information
If you have any questions or problems, you can email the PMEGP office at pmegpeportal.kvic@gov.in for help.