PMEGP Scheme 2025: The Pradhan Mantri Employment Generation Programme (PMEGP Scheme 2025) is a scheme aimed at generating employment opportunities in rural and urban areas. The PMEGP Scheme 2025 focuses on employment generation through setting up of new self-employment ventures, projects or micro-enterprises.
The PMEGP Scheme 2025 provides subsidy ranging from 15% to 35% of the project cost, depending on the category and location of the beneficiary. The beneficiary has to contribute 5-10% of the project cost himself, while the rest of the amount is funded by the banks. Apart from this, the PMEGP Scheme 2025 also provides a second PMEGP loan for expansion or upgradation of successfully running PMEGP or MUDRA units.
How to get subsidy on business loan under PMEGP Scheme 2025?
Do you want to start your dream business? Are you dreaming of starting from that small shop to a big industry? Then Pradhan Mantri Rojgar Srijan Karya Kram (PMEGP) can be a great opportunity for you. Under this scheme, the government gives you a loan to start your business, along with some amount of subsidy.
Now you must be thinking, “Where and how will you get this subsidy?” Don’t panic! Let us tell you in detail how to get subsidy on business loan under PMEGP 2025 and which bank will help you.
What is PMEGP Scheme 2025?
Pradhan Mantri Rojgar Srijan Karya Kram (PMEGP Scheme 2025) is a credit-linked subsidy program launched by the Central Government. Its aim is not only to create employment but also to help the unemployed to start their business to make them self-reliant. Under this PMEGP Scheme 2025, the government gives loans to young entrepreneurs, and that too without any heavy interest rate! You just have to invest some amount of your own, the rest is done by the government and the bank together.
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How to get subsidy on PMEGP loan 2025?
The most important part of any scheme is – “subsidy”! Under PMEGP, you get subsidy on loan, which is a large part of the total cost of your loan. Now the question is what to do to get this subsidy?
- Applying – First of all, you have to fill a form.
- Reporting the project – You have to prepare your business plan and project report, so that the bank and the government can understand that you have a good idea.
- Providing loan by the bank – The bank will approve the loan on the basis of your project report and financial condition.
Getting subsidy – The government will give subsidy on the loan approved by the bank. This subsidy can be from 15% to 35% of your project cost, and it depends on the area (rural or urban) and the category of your business.
What is the subsidy percentage?
Here the question arises that how much subsidy will be available? So it depends on which category you fall under.
| Category | Subsidy Rate in Urban Areas | Subsidy Rate in Rural Areas |
| General | 15% | 25% |
| Special | 25% | 35% |
As you can see, if you come from a special category (like SC/ST, women, Divyang, ex-servicemen, etc.) then you will get more subsidy in both urban and rural areas. Not only this, the subsidy rates in the PMEGP scheme can also vary from bank to bank and loan institution, but don’t worry, everything is done in a systematic manner.
Interest rates and loan amount
Finally, the most important question – what will be the interest rate? Many people think that after getting the loan, the bank will put a heavy interest burden on them. But these loans under PMEGP are quite cheap.
However, interest rates vary depending on the bank and loan institution. Some banks like SBI, Bank of Baroda, Canara Bank, and Bank of India, which provide loans under this scheme, do not have high interest rates. The loan amount can range from Rs 20 lakh to Rs 50 lakh, and it depends on the type of your business. But note, this difference in interest rates depends on your profile, credit score, and type of business.
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Eligibility for PMEGP Loan 2025
Let us know whether you are eligible for this loan or not.
- If you are 18 years of age or above and have passed at least class VIII, then you can apply for PMEGP loan.
- Apart from this, this loan is also available to individuals, companies, self-help groups, charitable trusts, and cooperatives.
That’s right, this loan is only for starting a business. If you have already started a business, then this scheme is not for you. It is especially for new businesses.
How to apply for PMEGP loan?
The method of applying for PMEGP loan is very easy. You can do it online as well as offline.
Apply online –Go to the PMEGP portal and fill the form. Upload all the required documents and submit it. Then you will get a user ID and password, so that you can check the status of your application.
Offline Application –You can visit the nearest bank and fill up the form and submit all the required documents.
Documents Required for PMEGP Scheme 2025
Now that you know how to apply, there are some important documents that you will need.
- Passport size photo
- Project report
- Identity proof like Aadhaar card and PAN card
- Educational certificate (at least 8th standard pass)
- If you fall into the special category, then the relevant certificate
- Additional documents required by the bank
Which bank will help you with PMEGP loan?
Now the question comes which bank will approve your loan. The major banks from which you can get a loan under PMEGP loan include SBI, Bank of India, Canara Bank, Bank of Baroda, and many other public and private banks. The interest rates of these banks are quite affordable, and all of them complete the process smoothly.
FAQs
What does the PMEGP Loan Scheme aim to achieve?
The program offers people financial support to launch new companies in the manufacturing and service industries.
For whom are PMEGP loans available?
Indian nationals who are at least eighteen years old and intend to launch a new company are eligible.
What is the most that can be borrowed?
For the manufacturing and service sectors, up to ₹50 lakh and ₹20 lakh, respectively.
What Documents is required for the application?
Aadhaar, PAN, project report, education certificates, and caste certificates (if applicable) are important documents.
Can I submit an offline application?
Yes, please download the form from the portal, complete it, and send it to the KVIC office that is closest to you.