How to Apply for PMEGP Loan in 2025 – Full Guide
(Includes PMEGP Project Report Loan Tips & More)
The Prime Minister’s Employment Generation Programme (PMEGP) remains one of the most powerful government-backed schemes for aspiring entrepreneurs in 2025. Implemented by the Khadi and Village Industries Commission (KVIC) under the Ministry of MSME, it provides credit-linked subsidies to individuals and groups starting new micro-enterprises in manufacturing or service sectors.
Whether you’re applying under PMEGP, CMEGP (Chief Minister’s Employment Generation Programme), or seeking a general Project Report for Bank Loan, this guide will walk you through the complete application process in 2025.

Key Features of PMEGP Loan Scheme
- Subsidy (Capital Grant):
- Urban Areas:
- 15% (General)
- 25% (Special categories: SC/ST/OBC/Women/PH)
- 15% (General)
- Rural Areas:
- 25% (General)
- 35% (Special categories)
- 25% (General)
- Urban Areas:
- Maximum Project Cost:
- ₹50 lakh for manufacturing units
- ₹20 lakh for service sector businesses
- ₹50 lakh for manufacturing units
- Eligible Applicants:
- Individuals aged 18+
- Self-help groups, cooperatives, charitable trusts, and registered institutions
- Minimum education: Class 8 pass (for projects >₹10 lakh in manufacturing or ₹5 lakh in services)
- Individuals aged 18+
Step-by-Step Guide to Apply for PMEGP Loan in 2025
Step 1: Check Eligibility
Ensure that:
- You’re starting a new venture, not expanding an existing one
- You fulfill the education and age requirements
- You belong to any eligible beneficiary category if applying for a higher subsidy
Step 2: Choose a Viable Business Idea
You can choose from 200+ model projects approved by KVIC or propose your own idea. Some popular examples:
- Food processing unit
- Agarbatti or candle making
- Tailoring, embroidery or garment unit
- Salon or service repair business
- Digital printing or DTP services
For inspiration, you can view sample PMEGP Project Reports at:
👉 https://kviconline.gov.in
Step 3: Prepare a Detailed Project Report
Whether you are applying under PMEGP, CMEGP, or simply need a Project Report for Loan, this is the most crucial document in your application.
Your Project Report must include:
- Business summary and scope
- Cost estimate (machinery, raw material, working capital)
- Means of finance (loan + subsidy + promoter contribution)
- Financial viability (profit margins, ROI, breakeven)
- Marketing and growth strategy
This document is also referred to as a Project Report for Bank Loan, as banks use it to assess your loan eligibility. If you’re unsure how to draft one, consult a CA or financial expert.
Step 4: Submit Online Application
Head to the official PMEGP portal:
👉 https://kviconline.gov.in/pmegp/
What you’ll need to upload:
- Aadhaar card
- PAN card
- Caste/income certificate (if applicable)
- Educational qualification proof
- Passport-size photo
- Project Report for Loan (mandatory)
- Bank account details
Pro Tip: Choose your District Industries Centre (DIC), KVIC, or KVIB jurisdiction carefully.
Step 5: Attend EDP Training
All shortlisted applicants must complete a 3 to 10-day Entrepreneurship Development Programme (EDP) through RSETI, DIC, or MSME-DI.
This training is:
- Free of cost
- Focused on business planning, accounting, and market awareness
- Mandatory before bank loan disbursal
Step 6: Bank Loan Sanction & Subsidy Disbursement
- Your bank (Public/Private/Scheduled/Gramin) will evaluate your Project Report for cmegp loan
- Once sanctioned, you get up to 90–95% of the project cost as a term loan
- Subsidy (PMEGP margin money) is parked in a lock-in account for 3 years
- Final subsidy is adjusted after physical verification of your unit
Important Tips
- Only one PMEGP loan per applicant is allowed
- Your business must start within 6 months of disbursal
- Udyam Registration is encouraged for MSME recognition
- You can apply under CMEGP (state version) if applicable in your region
Final Thoughts
The PMEGP scheme is a golden chance to turn your entrepreneurial dream into a profitable business—with government support, subsidy, and collateral-free bank loans. All you need is a solid Project Report for PMEGP, the right idea, and commitment to follow through.
If you need help preparing your PMEGP Project Report, CMEGP Project Report, or a customized Project Report for Loan, feel free to reach out—we’re here to help you get started the right way!