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PMEGP Online Application

PMEGP Online

Last Updated 03rd Dec 2020

PMEGP Full Form Prime Minister Employment Generation Programme (PMEGP)
Online Application On official portal of Khadi and Village Industries Commission
Subsidy 15% to 35% of Project Cost
Loans At the rate of 11% to 12%.
Eligibility
  • Must be above 18 years of age.
  • Must have cleared the VIII standard.
  • Self-Help Groups
  • Co-operative Societies, etc.
Key Points
  • 90% to 95% of project cost is funded by bank under PMEGP.
  • The loan tenure ranges from 3 to 7 years.
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Apply Online for PMEGP Scheme

The Prime Minister Employment Generation Programme or PMEGP operates with the aim of extending financial assistance to entrepreneurs for setting up a new business. This scheme launched by the Ministry of Micro, Small and Medium Enterprises disburses subsidy via selected banks. Under PMEGP, beneficiaries can avail a subsidy ranging from 15% to 35%, for projects of manufacturing sectors with a maximum value of ₹ 25 Lakh and projects of business or service sectors with a maximum value of ₹ 10 Lakh. The Khadi and Village Industries Commission is liable for executing the Prime Minister Employment Generation Programme at the national level.

Applying for PMEGP online is a seamless job. However, before going through the step by step process for making the application, let’s take a look at the subsidy rate based on category and area.

Subsidy rate for General Category

AreaRate of subsidy
Urban area15%
Rural area25%

Subsidy rate for Special Category

AreaRate of subsidy
Urban area25%
Rural area35%

Steps to make Online PMEGP Application

You can avail the benefits of PMEGP apply online by visiting the official portal of the Khadi and Village Industries Commission and filling up the form. However, the form submission is done offline. Following is the process for applying PMEGP online.

  • Visit the Khadi and Village Industries Commission website, https://kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp. 
  • Once the above URL is opened in another tab, the PMEGP online application form will be visible.
  • Enter the following details as required on the form.
    • Aadhaar details
    • Personal details
    • Address details
    • Contact details
    • PAN details
    • Bank details
  • Read the self-declaration and tick on the given box.
  • Tap on ‘Save Application Data’ and take a printout of the duly filled form.
  • Submit the form to the nearest office and complete all formalities required by the respective bank.

While you opt for PMEGP online apply, keep in mind that the application form contains 21 components and you must enter correct details in all of them. 

Documents Required for PMEGP Online Application

Following is the list of documents required for the PMEGP online application.

  • Aadhaar card
  • PAN card
  • Rural area certificate
  • Caste certificate
  • Authorization Letter
  • Project report
  • Special category certificate
  • Certificate for education or skill development/certificate for Entrepreneurship Development training.

Eligibility Criteria

Individuals belonging to general, SC, ST, OBC and minor categories along with ex-servicemen and people living in border areas are eligible under the PMEGP scheme. Below is the list of eligibility criteria for the Prime Minister Employment Generation Programme.

  • Applicants should be at least 18 years old.
  • Minimum education qualification is clearing VIII standard.
  • Production Co-operative Societies. 
  • Self Help Groups
  • Charitable Trusts 
  • Institutions registered under the Societies Registration Act, 1860.

The followings are not eligible under the PMEGP scheme.

  • Business manufacturing or dealing with canned meat, intoxicant items, crop cultivation and polythene bags of less than 20 microns.
  • Businesses in manufacturing, production or sale of cigars, cigarettes, bedis, etc. 
  • Plantation such as rubber, tea, coffee, etc.
  • Food outlets serving alcohol
  • Industry or business producing tobacco as raw material or associated with the tapping of toddy for sale. 
  • Sericulture
  • Floriculture
  • Horticulture

Key points to remember

Apply for PMEGP online after going through these key points. 

  • 90% to 95% of the project cost is funded by banks under the PMEGP scheme.
  • 15% to 35% from projection cost of 90% to 95% is generated as subsidy and 60% to 75% as term loan.
  • Rate of interest on the loans under the scheme can be 11% to 12% and repayment tenure range from 3 to 7 years.

FAQs

How do I apply for a PMEGP loan online?

Follow these steps for applying PMEGP online.

  • Get to the Khadi and Village Industries Commission website, https://kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp.
  • Enter the necessary details and tap on ‘Save Application Data’.
  • The application form will be saved.
  • Take a print out of the form and submit to the nearest office.

What is margin money in PMEGP?

In PMEGP, margin money refers to the subsidy disbursed under the scheme. The margin money under the programme is 15% to 35% based on the category and location of the applicant. 

What are the documents required for PMEGP loan?

The documents required for the PMEGP loan are as follows.

  • Aadhar and PAN
  • Category and caste certificate
  • Project Report
  • Certificate of Rural area
  • Education, skill development or Entrepreneurship Development training certificate.

What is Project cost in PMEGP?

In PMEGP project cost refer to the value of the business or entrepreneurship for which loan is applied. For manufacturing sectors, the maximum project cost can be ₹ 25 Lakh and for business or service sectors ₹ 10 Lakh. 


*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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