> ## Content Index > Fetch the complete content index at: https://newsanek.com/llms.txt > Use this file to discover other available public pages before exploring further. # PMEGP: how to get a bank loan with up to 35% subsidy to start your own business - URL: https://newsanek.com/pmegp-loan-subsidy/ - Published: 2026-11-07T04:32:42.000Z - Updated: 2026-11-07T15:50:16.000Z - Description: PMEGP gives a margin money subsidy on bank loans for new micro-enterprises. Rural applicants and special categories get a higher share. Here is who qualifies and how to apply. - Author: Kumar Ujjwal - Tags: Govt Schemes, #scheme-msme, #scheme-for-entrepreneur, #scheme-for-youth, #scheme-all-india Here is the whole scheme in one place: what you get, who qualifies, how to apply, and what to check. __At a glance__ | Scheme | Prime Minister's Employment Generation Programme (PMEGP) | | ---------------------- | ------------------------------------------------------------------------------------ | | Ministry or Department | Ministry of Micro, Small and Medium Enterprises, Govt of India (implemented by KVIC) | | Benefit | Margin money subsidy of 15% to 35% on the project cost, paid through a bank loan | | Who can apply | Entrepreneurs and youth aged 18 or above starting a new micro-enterprise | | How it is paid | Subsidy is released to the bank loan account of the beneficiary | | Apply at | kviconline.gov.in/pmegpeportal or the KVIC, KVIB or DIC office | | Cost to apply | Free | ### Key points - Subsidy is 15% to 35% of project cost, depending on area and category. - It works only with a bank loan, sanctioned by a bank. - A detailed project report by a Chartered Accountant is mandatory. - Only new micro-enterprises qualify, not existing businesses. ## So what exactly do you get? PMEGP gives a margin money subsidy on the bank loan for your project. For the general category, the subsidy is up to 25% in rural areas and 15% in urban areas. For SCs, STs, OBCs, minorities, women and other special categories, it is up to 35% in rural areas and 25% in urban areas. PMEGP subsidy rates: general vs special category General category, rural25 General category, urban15 SC/ST/OBC/women, rural35 SC/ST/OBC/women, urban25 % Graphic: News Anek, from the facts in this report The subsidy is not cash in your hand. It reduces the loan you must repay, and the bank gets it. Amounts can change, so please confirm the current rates on the official site. ## Who can apply, and who cannot? You must be at least 18 years old to apply. The project must be a new micro-enterprise. Existing businesses cannot get this subsidy. Applicants from rural areas, women, SCs, STs, OBCs and economically weaker sections get priority and higher subsidy. Your project cost must be within the limits set by KVIC for manufacturing and service units. Any person who already got a subsidy under the same scheme for the same purpose cannot apply again. ## A short background: why was PMEGP started? PMEGP was launched on 14 August 2008 by the Government of India. It was formed by merging two older schemes, PMRY and REGP. It is run by the Ministry of Micro, Small and Medium Enterprises, and implemented through the Khadi and Village Industries Commission. The aim is to create self-employment in the non-farm sector and give jobs to rural and urban youth. ## What documents should you keep ready? Keep your Aadhaar card and PAN card ready. Keep your educational certificate, caste certificate if you belong to a special category, and passport size photos. Keep your project report, prepared by a Chartered Accountant, and your bank account details. Keep address proof and any quotations for machines or raw materials. ## How do you apply online, step by step? Go to kviconline.gov.in/pmegpeportal and click on the online application option. Register with your mobile number and Aadhaar details, then fill in the application form. Upload your documents and the project report, then submit the form. Your application goes to the KVIC or KVIB office for scrutiny, and then to the bank for loan sanction. ## How do you apply offline? You can also apply at the district office of KVIC, the State KVIB, or the District Industries Centre. Officials there will help you fill the form and guide you to the right bank. ## How do you check status, and what if it is stuck? Use the application status option on the PMEGP portal with your application number. Most delays happen when the bank has not sanctioned the loan, or the project report is incomplete. Check with your bank branch and the KVIC office if the status does not move for a long time. ## Helpline and important tips You can contact the KVIC office or the PMEGP helpline listed on the official portal. Never pay any agent or middleman for a PMEGP application. Applications are free. Beware of fake websites and calls asking for money in the name of PMEGP. ## Frequently asked questions ### Is there any fee to apply for PMEGP? No, the application is free. Never pay any agent for it. ### Do I get the subsidy in cash? No, the subsidy is adjusted against your bank loan and released to the bank account. ### Is a project report compulsory? Yes, a detailed project report prepared by a Chartered Accountant is mandatory. ### Can a women applicant get a higher subsidy? Yes, women get the higher subsidy rate under the special category. ### Official links - [Official website](https://www.kviconline.gov.in/pmegpeportal/?ref=newsanek.com) This guide is based on official scheme rules. Rules and amounts can change, so always confirm on the official website before you apply. News Anek is not a government website.