PMEGP Loan Eligibility Criteria 2026

• Age: Any individual above the age of 18 years.
• Income requirement: No income ceiling
• Educational qualification:
  • No educational qualification is required for projects below Rs. 5 lakh and Rs. 10 lakh in the business/service sector and manufacturing sector, respectively.
  • For project costs above Rs. 5 lakh in the business/service sector and Rs. 10 lakh in the manufacturing sector, a minimum qualification of VIIIth standard is mandatory.
• Only new projects under the PMEGP are applicable for the scheme.

Other Eligibility Conditions for PMEGP (New units)

• Project should include capital expenditure. Projects without capital expenditure are not eligible under the scheme.
• Land cost cannot be included in the project cost.
• The cost of a ready-built shed and long lease/rental workshed/workshop can be included in the project cost for a maximum period of 3 years.
• The activities prohibited by local Government/Authorities, keeping in view environmental or socio-economic factors, are not eligible for the scheme.

PMEGP Eligibility for Trading & Transport Businesses

The following trading/business activities are permitted under the PMEGP:

• The maximum project cost of the following eligible business/trading activities is Rs. 20 lakh.
• In a financial year, up to 10% of the state's PMEGP allocation can be used for the following eligible business/trading activities.
  • Sales outlets for business/trading activities are permitted only in the North East Region (NER), Left Wing Extremism (LWE)-affected districts and A&N Islands.
  • Businesses/retail outlets selling Khadi, Village Industry products, PMEGP unit products or SFURTI products.
  • Retail outlets backed by Manufacturing (including processing) / Service facilities.

Transport

• Transport activities, including the purchase of cabs, vans, boats, motorboats, and shikaras for transporting tourists or the general public, are eligible. However, transport projects are generally capped at 10% of the total PMEGP projects, except in notified regions such as NER, hilly areas, LWE-affected districts, Andaman & Nicobar Islands, Goa, Puducherry, Daman & Diu, Dadra & Nagar Haveli, Jammu & Kashmir, and Lakshadweep.

Mandatory Registration

• Every new PMEGP unit must register on the Udyam Portal before the loan subsidy is released.

Note: Only one person from one family is eligible for obtaining financial assistance for setting up a new enterprise under PMEGP loan scheme. The ‘family’ includes self, spouse and unmarried children.

Eligibility for Existing PMEGP, REGP or MUDRA Units (Upgradation Loan)

Existing businesses can apply for a second PMEGP loan, if:

• The first loan under PMEGP, REGP or MUDRA has been repaid on time.
• The business has been profitable for the last three years.
• The unit is registered on the Udyam Portal.

The applicant can apply through the same bank that sanctioned the first loan or another participating bank willing to provide the second loan.

Who is Not Eligible for a PMEGP Loan?

The list of activities not permitted for setting up micro enterprises is listed below:

• Businesses connected with meat processing, slaughtering, processing, canning, serving food items made of meat,
  • However, serving or selling non-vegetarian food at hotels/dhabas will be allowed.
• Businesses manufacturing or selling intoxicant items like Beedi/Pan/Cigar/Cigarette etc.
• Hotels or Dhabas selling liquor, preparing or producing tobacco as raw materials are not allowed.
• Activities prohibited by local government/authorities for socio-economic or environmental factors will not be allowed.
• Businesses connected to dairy, aquaculture, poultry, and insects will not be allowed.
• Existing Units (under PMRY, REGP or any other scheme of the Government of India or State Government) and units that have already availed Government Subsidy under any other scheme of the Government of India or State Government are not eligible.

How to Apply for PMEGP Loan

To apply for a PMEGP loan, applicants can follow the steps mentioned below:

How to Apply for PMEGP Loan Online

• Visit the PMEGP portal
• Download the application form in your preferred language
• Fill out and submit the offline application form to the nearest office of the respective Implementing Agency along with the required documents.

How to Apply for PMEGP Loan Offline

Steps for New Application Filing:

1. Visit the new PMEGP Portal.
2. Select the login option in the right corner of the menu bar.
3. Choose the "New Application" option.
4. Provide the required details in all the mandatory fields, select the required options from the dropdown menu, and click the 'Submit' button.
5. Registered Applicant Login
6. Edit Application
7. Update Score Card details
8. Upload Documents
9. Final Submission