What is PMEGP Scheme?
PMEGP (Prime Minister's Employment Generation Programme) is a credit-linked subsidy scheme launched by Government of India to generate employment opportunities through establishment of new self-employment ventures/projects/micro enterprises in manufacturing, service, and trading sectors. The scheme is administered by KVIC (Khadi and Village Industries Commission).
Key Features & Benefits
Subsidy Structure:
| General Category | 15% (Manufacturing) 10% (Service/Trading) |
| Special Category* | 25% (Manufacturing) 20% (Service/Trading) |
| NER & Hilly States | 35% (Manufacturing) 30% (Service/Trading) |
*SC/ST/OBC/Minorities/Women/Ex-servicemen/Handicapped, Hill & Border areas
Financial Assistance:
- Manufacturing Sector: Up to ₹50 Lakhs project cost
- Service Sector: Up to ₹20 Lakhs project cost
- Beneficiary Contribution: Minimum 10% (General) / 5% (Special)
- Bank Loan: Balance amount after subsidy
- Working Capital: Included in project cost
- Moratorium Period: 3-7 years available
Eligibility Criteria
For Individuals:
- Age: Above 18 years
- Education: Minimum 8th pass for projects above ₹10 lakhs
- Income: No restriction
- No previous loan default
- Not availed benefits under any other govt scheme
- Self Help Groups, Trusts, Societies, Charitable Trusts eligible
Ineligible Applicants:
- Those who already availed govt subsidy scheme in last 5 years
- Defaulters of any govt loan
- Existing units (expansion not covered)
- Units under SSI/Khadi registered before scheme
- Projects involving tobacco, pan masala, liquor
Complete Document Checklist
- PMEGP application form (online/offline)
- Aadhaar Card & PAN Card
- Educational certificates
- Caste certificate (if applicable)
- Address proof & Photograph
- Project report/DPR
- Quotations for machinery/equipment
- Land/shed documents
- Bank account details
- Pollution clearance (if required)
- Trade license/Shop Act
- Partnership deed (if applicable)
Application Process - Step by Step
- Online Application: Visit www.kviconline.gov.in/pmegpeportal and register. Fill application form with all details.
- Business Plan: Prepare detailed project report (DPR) with cost estimates, machinery details, working capital calculation.
- Submit to Bank: Take printout and submit to designated bank with all documents within 3 months.
- Bank Processing: Bank verifies application, does field inspection, checks project viability.
- Loan Sanction: If approved, bank sanctions loan and forwards to KVIC for subsidy approval.
- Subsidy Release: KVIC releases subsidy to bank. Bank disburses loan to beneficiary account.
Complete Mudra Loan Information
MUDRA (Micro Units Development & Refinance Agency) scheme provides funding to non-corporate, non-farm small/micro enterprises. These loans are given by banks, NBFCs, and MFIs under three categories based on business stage and funding requirement. No collateral required for loans up to ₹10 lakhs.
Three Categories of Mudra Loans
| Category | Loan Amount | Business Stage | Purpose | Interest Rate |
|---|---|---|---|---|
| Shishu | Up to ₹50,000 | Start-up/Early stage | Starting new business, initial working capital | 8-12% p.a. |
| Kishore | ₹50,001 to ₹5 Lakhs | Established businesses | Business expansion, additional equipment | 10-14% p.a. |
| Tarun | ₹5,00,001 to ₹10 Lakhs | Well-established businesses | Major expansion, modernization, diversification | 12-16% p.a. |
Who Can Apply?
- Small manufacturing units
- Shop owners & traders
- Service sector enterprises
- Street vendors & hawkers
- Artisans & craftsmen
- Food service units
- Truck & taxi operators
- Professional services
- Small industries
Key Features:
- No Collateral: Security-free loans
- Lower Interest: Compared to regular business loans
- Easy Processing: Minimal documentation
- Quick Approval: 7-15 days processing
- Flexible Repayment: Up to 5-7 years tenure
- Mudra Card: Working capital facility via card
- Credit Guarantee: Govt backed guarantee
Documents Required
Identity & Address:
- Aadhaar Card
- PAN Card
- Voter ID/Passport
- Residence proof
- Photographs
Business Documents:
- Business registration proof
- Shop Act/Trade license
- GST Registration (if any)
- Business address proof
- Quotations for purchases
Financial Documents:
- Bank statements (6 months)
- Sales/Purchase bills
- Income proof/ITR
- Business plan/Project report
- Loan application form
Stand-Up India - Empowering Underserved Sections
Stand-Up India scheme facilitates bank loans between ₹10 lakh and ₹1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise in manufacturing, services or trading sector.
Scheme Details:
| Loan Amount | ₹10 Lakhs to ₹1 Crore |
| Beneficiaries | SC/ST and/or Women |
| Interest Rate | Lowest applicable rate + 3% markup |
| Repayment | 7 years with 18 months moratorium |
| Margin Money | 25% (15% from govt schemes) |
| Collateral | Primary security is asset created |
Eligibility Criteria:
- Category: SC/ST and/or Women entrepreneur
- Age: Above 18 years
- Business: Greenfield enterprise (new venture)
- Sector: Manufacturing, Services, Trading
- First Time: Not availed loan under scheme earlier
- Borrower: Not defaulter of any bank
- Shareholding: 51% by SC/ST/Women
Special Features & Support
Skill Training
Free skill development programs, EDP training, handholding support during setup
Credit Guarantee
Credit Guarantee Fund coverage up to 80% for collateral-free loans
Mentorship
Post-sanction mentorship, market linkage, technology support
Startup India - Build Your Startup Dream
Startup India is a flagship initiative of Government of India to build a strong ecosystem for nurturing innovation and startups in the country. It provides tax benefits, easier compliance, IPR fast-track, funding support, and networking opportunities to recognized startups.
Key Benefits of Startup India Recognition
Tax Benefits
3 years income tax exemption (out of first 10 years). Angel tax exemption. No tax on capital gains for startup investment.
Easy Compliance
Self-certification for 6 labour & 3 environmental laws. Faster exit (90 days winding up). Simpler IPR process.
Funding Support
Fund of Funds (₹10,000 Cr corpus). Credit Guarantee Scheme. Access to government tenders without prior experience/turnover.
Eligibility for Startup India Recognition
- Entity: Private Limited Company, Partnership Firm, or Limited Liability Partnership
- Age: Incorporated/Registered not more than 10 years ago
- Turnover: Annual turnover not exceeding ₹100 Crores in any financial year
- Innovation: Working towards innovation, development of new products/services/processes OR significant improvement of existing ones
- Scalability: Business model with high potential of employment generation or wealth creation
- Original Entity: Not formed by splitting up or reconstruction of existing business
How to Get Startup India Certificate?
- Register on Portal: Visit www.startupindia.gov.in and create account
- Incorporate Entity: Register your company/LLP/Partnership firm
- Submit Application: Fill online form with company details, business description, innovation details
- Upload Documents: Certificate of incorporation, Brief about innovation, Recommendation letter (if applicable)
- Approval: Inter-Ministerial Board reviews and approves within 2-3 weeks
- Certificate: Recognition certificate issued with DPIIT number
Credit Linked Capital Subsidy (CLCSS)
For: MSMEs for technology upgradation
Subsidy: 15% subsidy (max ₹15 lakhs)
Sector: Manufacturing units
Learn MoreKisan Credit Card (KCC)
For: Farmers for agricultural activities
Amount: Based on land holding & crop
Interest: 4% (with timely repayment)
Apply NowNational SC/ST Hub (NSSH)
For: SC/ST entrepreneurs
Support: Market linkage, procurement
Benefit: Access to govt tenders
Learn MoreTREAD Scheme
For: Women entrepreneurs
Support: Training, credit, handholding
Grant: Up to 90% of project cost
Apply NowCredit Guarantee Scheme (CGS)
For: MSMEs collateral-free loans
Coverage: 75-85% guarantee
Limit: Up to ₹5 Crores
Learn MoreSolar Rooftop Subsidy
For: Installing solar panels
Subsidy: 40% for residential
Capacity: Up to 10 kW
Apply NowAyushman Bharat
For: Health & Wellness Centers
Support: Funding for setup
Benefit: Healthcare infrastructure
Learn MoreSwachh Bharat Mission
For: Sanitation & waste management
Support: Subsidy for toilets, plants
Sector: Sanitation businesses
Apply NowSkill India (PMKVY)
For: Skill training centers
Support: Training & placement funds
Benefit: Govt certification
Learn More| Feature | PMEGP | Mudra Loan | Stand-Up India | Startup India |
|---|---|---|---|---|
| Loan Amount | ₹10L - ₹50L | Up to ₹10L | ₹10L - ₹1Cr | Varies (FoF access) |
| Subsidy | 15-35% | No subsidy | Margin support | Tax benefits |
| Target Group | All citizens 18+ | Micro enterprises | SC/ST/Women | Innovative startups |
| Collateral | Not required | Not required | Asset created | Based on funding |
| Interest Rate | Bank rate + Margin | 8-16% p.a. | MCLR + 3% | Market rate |
| Processing Time | 30-60 days | 7-15 days | 15-30 days | Certificate: 2-3 weeks |
| Best For | New manufacturing/service units | Small businesses | SC/ST/Women greenfield | Tech startups |
Why Choose Government Schemes?
- Lower Interest Rates: Government schemes offer significantly lower interest rates (7-12% p.a.) compared to regular business loans (14-20% p.a.), resulting in huge savings over loan tenure.
- Direct Subsidy: Get 15-35% subsidy on project cost, reducing your financial burden. For ₹10L project, you can get ₹1.5L-3.5L as subsidy.
- No Collateral Required: Most schemes don't require property or asset as security, making it accessible for everyone.
- Longer Repayment Period: Extended tenure up to 7-10 years with moratorium period reduces monthly EMI burden significantly.
- Credit Guarantee: Government backing increases approval chances even with limited credit history or no prior business experience.
- Additional Benefits: Free training, mentorship, market linkage, technology support, preference in govt tenders.
How We Help You Get Maximum Benefits
- Scheme Selection: We analyze your profile, business idea, and financial situation to recommend the most suitable government scheme offering maximum benefits.
- Project Report Preparation: Our experts prepare detailed, professional project reports (DPR) that meet all government guidelines, increasing approval chances to 99%.
- Complete Documentation: We handle entire paperwork - from application forms to supporting documents, ensuring nothing is missed.
- Bank Liaison: We coordinate with designated banks, follow up on application status, and ensure timely processing.
- Subsidy Claim: We assist in proper subsidy claim procedures, ensuring you receive maximum entitled subsidy amount.
- Post-Sanction Support: Guidance on business setup, statutory compliance, accounts maintenance, and subsidy utilization.
Common Mistakes to Avoid While Applying for Government Schemes
❌ Wrong Scheme Selection
Applying for wrong scheme leads to rejection. For example, applying PMEGP for existing business (it's only for new ventures) or Mudra loan for amounts above ₹10L. Always verify scheme eligibility before applying.
❌ Incomplete Documentation
Missing even one document can delay or reject application. Keep all documents ready - identity proof, business registration, project report, quotations, land documents. Verify checklist multiple times.
❌ Poor Project Report
Weak DPR (Detailed Project Report) is main rejection reason. Project report must include realistic cost estimates, market analysis, profitability calculations, and proper justification. Professional help recommended.
❌ Not Following Up
After submission, applicants don't follow up with banks/KVIC, leading to delays. Regular follow-up, providing additional info when asked, and tracking application status is crucial for timely approval.
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500+
Schemes Approved
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