
Eligibility For PMEGP new enterprises (Units)
- Any individual, above 18 years of age
- There will be no income ceiling for assistance for setting up projects under PMEGP.
- For setting up of project costing above Rs.10 lakh in the Manufacturing sector and above Rs. 5 lakhs in the Service/ Business sector, the beneficiaries should possess at least VIII standard pass educational qualification.
- Assistance under the scheme is available only for new viable projects sanctioned specifically under the PMEGP.
- Existing Units and the units that have already availed any Government Subsidy (under PMRY, REGP, PMEGP,CMEGP or any other scheme of Government of India or State Government) are not eligible.
- Projects without Capital Expenditure (Term Loan) are not eligible.
- Cost of Land can not be covered under the project cost.
- All Implementing Agencies (KVIC, KVIB, DIC and Coir Board) can process applications in both rural as well as urban areas.
- Applicant should possess valid Aadhaar Number.
- Applicant shall give his/her consent to authenticate demographic details such as Aadhaar number, Name, Gender, Date of Birth and Mobile number from UIDAI server.

PMEGP Loan Scheme Details
Let us look at the various aspects of the PMEGP Loan, from the percentage share of funds allocated to each party to the interest rate and tenure.
- Loan Allocation
- The breakup of the amount disbursed under a PMEGP loan is as follows:
- Once the application is approved, the bank allocates 95% of the project cost (for the poorer sections of society) or 90% of the project cost (for general applicants).
- The government provides margin money or subsidy of 15-35% of this amount. The amount of margin money taken by banks will be proportional to the applicant’s actual capital expenditure. The remaining margin money will be returned to the Khadi and Village Industries Commission in proportion to the amount not used (KVIC).
- The bank provides the remainder of the funds as a term loan or PMEGP loan.
- Loan Quantum and Self-Investment