PMEGP Scheme – Get 35% Subsidy to Start Your Own Business | Complete Application Details
Under the Prime Minister’s Employment Generation Programme (PMEGP), individuals who wish to start their own enterprise/business/self-employment can receive up to 35% subsidy on the total loan amount. This article provides complete information on how to apply for this scheme.
At present, both Central and State Governments offer several subsidy-based schemes to support eligible candidates who want to start their own businesses. Among them, PMEGP is one of the most popular schemes.
In this article, you will learn:
- Which businesses are eligible for PMEGP subsidy
- Eligibility criteria
- Application procedure
- Required documents
- Subsidy details
- Step-by-step guide for online application
PMEGP Loan – Which businesses are eligible for subsidy?
Under PMEGP, subsidy is available for many types of businesses such as:
- Readymade garment manufacturing / tailoring
- Beauty parlour
- Paper plate manufacturing
- Electrical service
- Cyber centre
- Two-wheeler service
- Sound & lighting service
- Shamiyana (tent) service
- Woodwork
- Food products manufacturing
- Arecanut plate manufacturing
- Centering sheet service
- Mobile shop
- Hotel / canteen (veg)
- Rice flour mill
- Oil mill
- Bakery production
- Poultry farming
- Dairy farming
- Pollution/Smoke check centre
- Steel furniture / welding works
- Catering service
- Neem seed processing
- Candle manufacturing
- Soft drink manufacturing
PMEGP Scheme – Eligibility Criteria
To apply under PMEGP, the applicant must:
- Be an Indian resident
- Candidates from all caste/categories can apply
- Applicants who have already received PMEGP subsidy once are NOT eligible again
- People from both rural and urban areas can apply
PMEGP Loan Details – How to Apply?
Interested applicants should prepare the required documents and apply in any one of the following ways:
1. Apply Offline
Visit your District Industries Centre (DIC) and submit the application with necessary documents.
You can also apply through Grama One centres.
2. Apply Online
You can also submit your application online directly through the official PMEGP website using your mobile phone.
Documents Required
To apply online for PMEGP, you must have:
- Aadhaar Card
- Caste certificate
- Population certificate & residence proof (from Panchayat/Municipality)
- PAN Card
- Passport-size photo
- Bank passbook
- Project report
Important Step Before Applying
Before submitting the application, visit the bank branch where you have an account and get details about:
- Required machinery
- Total project cost
- Loan requirements
Also, obtain your CIBIL report. Only if your CIBIL score is 700 or higher (or -1), you should proceed with the application.
PMEGP Subsidy Details – How is Subsidy Credited?
- After submitting the online application, the District Industries Centre (DIC) will verify your documents.
- Your application will then be forwarded to the bank branch you selected.
- The bank will verify your application and, if needed, inspect the location where you intend to start the business.
- Once approved, the loan amount will be transferred directly to the machinery supplier as per your quotation.
- After loan sanction, the Central Government will release the 35% subsidy to your bank branch.
- This subsidy amount will be kept as Fixed Deposit (FD) in your bank’s mirror account for 3 years until you complete your loan repayment.
- After 3 years, the subsidy will be adjusted toward your loan account.
- Once your entire loan is repaid, the remaining amount (if any) will be credited to your savings account.
PMEGP Online Application – Apply Using Your Mobile
Follow the steps below to apply for PMEGP online using your mobile:
Step 1:
Click the link “PMEGP Loan Apply Online” and open the official PMEGP portal.
Step 2:
Click on “Application for New Unit”.
The official application form will open.
Step 3:
Fill in all the required details and click the Submit button to complete your application.
