Everyone Above 18 Can Get ₹25 Lakh from the Government! Here’s How Through PMEGP
In 2025, one of the most beneficial government schemes for aspiring entrepreneurs is the Prime Minister’s Employment Generation Programme (PMEGP). Under this initiative, individuals aged 18 and above can receive financial support of up to ₹25 lakh to start their own business or manufacturing unit.
This guide provides full details about eligibility, loan amount, subsidy, online application process, documents required, and key benefits under the PMEGP scheme. If you are planning to become self-employed and want government support, this is the right opportunity for you.
What is PMEGP?
PMEGP is a credit-linked subsidy scheme launched by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. It is implemented through Khadi and Village Industries Commission (KVIC), State KVIBs, and District Industries Centres (DICs).
The main aim of this scheme is to:
- Promote self-employment by supporting new micro-enterprises in rural and urban areas
- Provide financial assistance to individuals and groups to set up businesses
- Reduce unemployment, especially among educated youth
PMEGP 2025 – Key Highlights
| Feature | Details |
|---|---|
| Scheme Name | Prime Minister’s Employment Generation Programme (PMEGP) |
| Implemented By | KVIC, MSME Ministry |
| Maximum Loan | ₹25 lakh (Manufacturing), ₹10 lakh (Service Sector) |
| Government Subsidy | 15% to 35% (depends on category and area) |
| Beneficiary Contribution | Only 5%-10% of the project cost |
| Age Limit | Minimum 18 years |
| Eligibility | Anyone above 18 with a viable business idea |
Who Can Apply for PMEGP?
To be eligible for a loan under PMEGP, the applicant must meet the following criteria:
- Must be above 18 years of age
- Must have passed at least 8th standard for projects above ₹10 lakh in manufacturing or ₹5 lakh in service sectors
- New business ventures only (existing businesses are not eligible)
- Must not have availed any subsidy under similar schemes
- Self-help groups, charitable trusts, societies, and institutions can also apply
- No income limit for eligibility
Loan Amount Under PMEGP
Under the PMEGP scheme, the government offers financial assistance for business startups:
| Business Type | Maximum Project Cost |
|---|---|
| Manufacturing | Up to ₹25 lakh |
| Service Sector | Up to ₹10 lakh |
This financial assistance includes a government subsidy, bank credit, and beneficiary contribution.
Subsidy Pattern (Government Grant)
The government provides a subsidy (grant) based on location and category:
| Area | General Category | SC/ST/OBC/Women/PH/Ex-Servicemen |
|---|---|---|
| Urban | 15% | 25% |
| Rural | 25% | 35% |
So, if you’re a woman or from a reserved category living in a rural area, you can get up to 35% subsidy on your total project cost.
How the Loan is Structured
Let’s take an example of a manufacturing unit worth ₹10 lakh in a rural area (general category):
- Beneficiary Contribution: ₹1 lakh (10%)
- Bank Loan: ₹7.5 lakh
- Govt Subsidy: ₹2.5 lakh (25%)
The subsidy is deposited into a separate account and adjusted after successful operation of the unit for 3 years.
PMEGP Loan Purpose
Funds under this scheme can be used for:
- Setting up small-scale manufacturing units
- Opening service-based businesses (salon, cyber cafe, tailoring, etc.)
- Purchase of machinery, tools, and raw materials
- Building or renting workshop/shop space
- Hiring employees for small business
Ineligible Activities
The following types of businesses are not allowed under PMEGP:
- Manufacturing of banned or hazardous items
- Alcohol and tobacco-related businesses
- Restaurant or hotel with alcohol service
- Activities already receiving government subsidies
Step-by-Step Guide to Apply for PMEGP Loan
The process is entirely online and simple. Here’s how to apply:
Step 1: Visit the Official Portal
Go to the official PMEGP e-Portal:
👉 https://www.kviconline.gov.in/pmegp/
Step 2: Click on ‘Online Application Form for Individual’
Select the “PMEGP E-Portal” and click on the “Apply for Individual” option.
Step 3: Fill the Online Form
You will need to enter the following details:
- Personal details (Name, Age, Gender, Aadhaar Number)
- Address and contact information
- Educational qualification
- Proposed business details
- Category (General/SC/ST/Women/OBC)
- Rural or Urban area
Step 4: Upload Documents
Upload scanned copies of your documents (see below for list).
Step 5: Submit the Form
Once submitted, your application will be verified by the concerned department (KVIC, KVIB, or DIC). After approval, you will be contacted by a linked bank for loan processing.
Documents Required
Make sure to have the following documents ready while applying:
- Aadhaar card
- PAN card
- Passport-size photograph
- Caste certificate (if applicable)
- Address proof (Voter ID, electricity bill)
- Bank account passbook
- Project report/business plan
- Educational certificate (8th pass or above)
- Rural area proof (if applicable)
How to Prepare a PMEGP Project Report
Your project report is the most important document in the approval process. It should include:
- Business profile and description
- Market analysis and target customers
- Estimated cost of machinery and raw materials
- Employment generation
- Income and expense projections
- Total project cost and funding breakup
You can download sample project reports from the official portal or consult local DIC officers for guidance.
Bank Loan and Subsidy Disbursement
Once your application is approved and bank loan sanctioned:
- The subsidy amount is kept in a separate account
- It will be adjusted against your loan after 3 years of successful business operation
- No collateral is required for loans up to ₹10 lakh under Credit Guarantee Scheme
Monitoring and Support
After loan sanction:
- The beneficiary must undergo Entrepreneurship Development Programme (EDP) training for 10 days
- Regular updates and inspections are done by the implementing agency
- If the unit is closed before 3 years, the subsidy has to be returned
PMEGP Helpline and Contact
For assistance, you can contact:
- KVIC Head Office: Mumbai
- Toll-Free Number: 1800-3000-0034
- PMEGP Portal: https://www.kviconline.gov.in/pmegp/
- You can also visit your nearest District Industries Centre (DIC)
Benefits of PMEGP Loan Scheme
- Up to ₹25 lakh support for starting your own business
- High subsidy of up to 35% for rural and reserved category applicants
- No collateral required for loans up to ₹10 lakh
- Helps in creating self-employment and generating jobs
- Available across all districts and states of India
- Online and transparent application process
- Government recognition and support for new businesses
Real-Life Example
A 22-year-old graduate from Karnataka applied under PMEGP to start a mobile repair unit. He received:
- ₹3 lakh as project cost
- ₹75,000 subsidy from the government
- Loan of ₹2 lakh sanctioned by SBI
- Now employs 3 people and earns ₹40,000 per month
Who Should Apply?
- Youth above 18 years interested in starting a small business
- Housewives or women entrepreneurs
- Rural residents with innovative ideas
- Unemployed graduates or diploma holders
- Self-help groups or NGOs planning income generation projects
Common Mistakes to Avoid
- Submitting incomplete documents
- Not preparing a proper business plan
- Not checking bank loan eligibility before applying
- Providing wrong information in the application form
The PMEGP scheme is one of the most powerful tools for young individuals and aspiring entrepreneurs in India to turn their ideas into reality. With minimal investment, up to ₹25 lakh in support, and high government subsidy, this is your chance to build your own future.
If you are above 18 years old and looking to start a manufacturing or service business, take advantage of PMEGP. Apply online, prepare a good business plan, and use the government benefits wisely.