What is PMEGP and who is eligible?

PMEGP (Prime Minister's Employment Generation Programme) provides subsidies of 15%–35% for new manufacturing and service units. Any Indian citizen above 18 years with a business plan can apply. NaavBharat provides end-to-end PMEGP application support.

What is the CGTMSE collateral requirement?

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) provides collateral-free credit guarantees up to ₹5 Crore for MSMEs with Udyam registration. No collateral or third-party guarantee is required.

What are the Mudra loan limits?

Mudra loans are offered in four tiers: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 Lakh), Tarun (₹5 Lakh to ₹10 Lakh), and Tarun Plus (₹10 Lakh to ₹20 Lakh). All tiers are collateral-free.

How does NaavBharat charge for its services?

NaavBharat operates on a success-linked advisory model with zero upfront fees. We charge only upon successful scheme disbursement. The initial eligibility consultation is completely free.

How long does PMEGP application processing take?

With complete documentation, PMEGP applications typically take 45–90 days from submission to sanction. NaavBharat's 98.6% approval rate is achieved through thorough pre-submission document review and bank coordination.

What documents are needed for CGTMSE?

CGTMSE requires Udyam Registration Certificate, business plan or project report, last 2 years ITR (if applicable), bank statements, KYC documents, and the loan application from a member lending institution (MLI).

Does NaavBharat help with GST registration and Udyam certification?

Yes. NaavBharat provides complete Certification services including GST registration, Udyam/MSME certification, FSSAI license, IEC (Import Export Code), trademark registration, and company incorporation for Pvt Ltd and LLP structures.

What is the maximum PMEGP loan amount?

₹50 Lakh for manufacturing and ₹20 Lakh for service sector. The bank finances 60%–75% of the project cost; you contribute 5%–10% as margin money.

Can an existing business apply for PMEGP?

No. PMEGP is strictly for new enterprises. For existing businesses, CGTMSE or Mudra loans may be more appropriate.

Is EDP training mandatory?

Yes. A minimum 2-week Entrepreneurship Development Programme (EDP) certificate from a KVIC-approved institute is mandatory before submitting your application.

How much subsidy will I get as a Woman applicant in a rural area?

Women applicants in rural areas receive the highest subsidy: 35% of the total project cost, deposited as a Term Deposit in the bank in your name.

Does NaavBharat charge upfront fees?

No. NaavBharat operates on a 100% success-linked model. Zero upfront fees. We charge only upon successful PMEGP loan disbursement. The initial consultation is completely free.

Most Popular Scheme98.6% Approval RatePan-India Service

Government Scheme Guide

What is PMEGP?Prime Minister's Employment Generation Programme

15%–35% Government Subsidy on New Enterprise Loans

₹50 Lakh

Max Loan (Mfg)

15–35%

Govt Subsidy

45–90 Days

Processing Time

1,000+

PMEGP Approvals

Overview

PMEGP — Explained

PMEGP (Prime Minister's Employment Generation Programme) is a credit-linked subsidy scheme administered by the Khadi and Village Industries Commission (KVIC) under the Ministry of MSME. It provides a direct government subsidy of 15%–35% on new enterprise loans.

The scheme is open to any Indian citizen above 18 years who wants to start a new manufacturing or service enterprise. There is no income ceiling. Manufacturing units can get loans up to ₹50 Lakh; service sector units up to ₹20 Lakh.

The subsidy is deposited as a Term Deposit (TDR) in the bank in your name and is adjusted against your loan outstanding after 3 years of successful operations. This significantly reduces the net cost of the loan.

Eligibility

Who Can Apply?

Indian citizen, 18 years of age or above
New enterprise only — not for expansion of existing units
Minimum 8th standard pass for manufacturing projects above ₹10 Lakh
No income ceiling — all income categories eligible
Self-help groups, co-operative societies also eligible
SC/ST, OBC, Women, Minorities, Ex-servicemen get higher 25%–35% subsidy

Documents

Documents Required

Aadhaar Card & PAN Card

Mandatory for all applicants

Educational Certificates

8th pass min for Mfg > ₹10L

Detailed Project Report (DPR)

NaavBharat prepares this for you

EDP Training Certificate

Mandatory — 2-week KVIC-approved training

Premises / Location Proof

Rent agreement or ownership documents

Bank Statement (6 months)

Shows financial health & margin money

Caste Certificate

SC/ST/OBC applicants only

Frequently Asked Questions

PMEGP — FAQs

Related Schemes

CGTMSE Mudra Loan Stand-Up India PMFME

Free Consultation

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