PMEGP Loan vs CMEGP Loan: Eligibility, Maximum Subsidy, CIBIL Score & Apply Online Process
If you are planning to start your own business in India or
Maharashtra, you must have heard about PMEGP scheme and CMEGP scheme
Maharashtra. Both schemes provide government subsidy and bank loans to help
individuals start small businesses. A lot of applicants are unsure how these
two schemes differ.
In this article, I will explain everything in a clear and
practical way, including difference between PMEGP and CMEGP scheme,
subsidy limits, eligibility, online application process, bank list, and common
doubts.
What is PMEGP Scheme?
The PMEGP scheme (Prime Minister’s Employment
Generation Programme) is a central government scheme launched to promote
self-employment and small businesses across India.
It is implemented by KVIC (Khadi and Village Industries
Commission) and supported by banks.
The main goal of PMEGP loan is to create employment
opportunities by helping people start new micro-enterprises in rural and urban
areas.
Under this scheme, you can get a bank loan along with a
government subsidy.
What is CMEGP Scheme?
The CMEGP scheme Maharashtra (Chief Minister
Employment Generation Programme) is a state government scheme.
It is similar to PMEGP but only available for residents of
Maharashtra. This scheme supports youth, entrepreneurs, and small business
owners to start new ventures with subsidy benefits.
The key aim of CMEGP loan is to generate employment
at the state level and promote local businesses.
Difference Between PMEGP and CMEGP Scheme
Having a proper understanding of both schemes is essential
before applying.
PMEGP is a central government scheme, while CMEGP is a
Maharashtra state government scheme. PMEGP is available across India, but CMEGP
is only for Maharashtra residents.
In terms of eligibility, PMEGP allows applicants above 18
years, whereas CMEGP generally allows applicants between 18 to 45 years (with
relaxation for special categories).
PMEGP subsidy ranges from 15% to 35% depending on category
and location, while CMEGP subsidy can go higher in some cases (explained
below).
Another important difference is implementation. PMEGP is
handled by KVIC, KVIB, and banks, whereas CMEGP is handled by Maharashtra
government departments and banks like Bank of Maharashtra.
Both schemes support only new businesses, not
existing ones.
PMEGP Subsidy Details
Under PMEGP subsidy, the government provides
financial support based on category and area:
- General
category:
- Urban:
15%
- Rural:
25%
- Special / Reserved category:
- Urban:
25%
- Rural:
35%
The subsidy is not given directly to you. It is adjusted in your loan account after a lock-in period.
What is the Maximum Subsidy for CMEGP?
The maximum subsidy for CMEGP is higher compared to
PMEGP.
Generally, subsidy can go up to 35% to 50% of project
cost, depending on category and project type. The exact percentage depends
on Maharashtra government guidelines and applicant category.
This makes CMEGP very attractive for Maharashtra-based
entrepreneurs.
What is the Limit of CMEGP Subsidy?
The subsidy limit under CMEGP scheme Maharashtra
depends on the project size.
- Small
projects may receive subsidy up to a few lakhs
- Larger
projects can get higher subsidy support
The scheme focuses on manufacturing, service, and small
business units.
PMEGP Eligibility (2026 Updated)
To apply for PMEGP loan, you must meet the following
conditions:
- Age
must be 18 years or above
- Minimum
education: 8th pass for higher project cost
- Only
new business allowed
- No
income limit
- Only
one person per family can apply
Eligible applicants include individuals, self-help groups,
societies, and trusts.
CMEGP Eligibility
For CMEGP loan apply online, the eligibility is:
- Age:
18 to 45 years (relaxation for special categories)
- Must
be a Maharashtra resident
- Minimum
education required for higher project cost
- Only
new business allowed
- One person per family eligible
PMEGP Loan Limit
The loan amount under PMEGP scheme depends on
business type:
- Manufacturing
sector: up to ₹50 lakh
- Service
sector: up to ₹20 lakh
The remaining amount is funded by banks after your
contribution.
CMEGP Loan Limit
Under CMEGP scheme Maharashtra, the loan amount can
go higher compared to PMEGP, especially for larger business units.
It depends on project viability and bank approval.
Which Bank Gives PMEGP in India? (PMEGP Bank List)
Many banks provide loans under PMEGP Bank list.
Some major banks include:
- State
Bank of India
- Bank
of Maharashtra
- Punjab
National Bank
- Canara
Bank
- Union
Bank of India
- Central
Bank of India
These banks process loans and release subsidy through
government channels.
CMEGP Bank List
For CMEGP loan, banks in Maharashtra participate
actively.
Common banks include:
- Bank
of Maharashtra
- State
Bank of India
- District
Cooperative Banks
- Nationalized banks operating in Maharashtra
Does PMEGP Need CIBIL Score?
Officially, PMEGP eligibility does not mention a
strict CIBIL score requirement.
However, in reality:
- Banks
check your CIBIL score
- Good
credit history increases approval chances
- Low
score may lead to rejection
So, maintaining a good credit profile is very important.
PMEGP Loan Apply Online (Step-by-Step)
You can apply for PMEGP loan apply online through the
official portal.
Basic process:
- Visit
PMEGP official portal
- Fill
online application form
- Submit
project report
- Select
bank
- Application
goes to DIC/KVIC
- Bank
verification and approval
- Loan sanction and subsidy processing
CMEGP Loan Apply Online (Individual Applicant)
For CMEGP online application for individual applicant,
follow this process:
- Visit
Maharashtra government CMEGP portal
- Register
yourself
- Fill
application form
- Upload
documents
- Submit
project report
- Select
bank
- Follow up with DIC and bank
Important Documents Required
For both schemes, you will need:
- Aadhaar
card
- PAN
card
- Address
proof
- Project
report
- Bank
account details
- Educational
certificate
- Category certificate (if applicable)
Real Ground Reality (Important Insight)
While these schemes are very beneficial, you should
understand practical challenges.
Many applicants face delays in approval, subsidy release,
and documentation process. Subsidy is not instant and may take time to be
credited.
Banks focus heavily on:
- Business
viability
- Project
report quality
- Applicant
profile
So always prepare a strong and realistic business plan.
Which Scheme is Better – PMEGP or CMEGP?
The answer depends on your situation.
If you live outside Maharashtra, PMEGP is your only option.
If you are in Maharashtra, CMEGP may be better due to higher
subsidy and state-level support.
However, approval depends more on your business plan and
bank decision than the scheme itself.
Summary
Both PMEGP scheme and CMEGP scheme Maharashtra
are excellent opportunities for starting your own business with government
support.
If you are serious about entrepreneurship, these schemes can
reduce your financial burden and help you grow faster.
But remember, subsidy is only support. Your business success
depends on planning, execution, and discipline.
Read also: Startup India Seed Fund Scheme 2025: Eligibility, Benefits & How to Apply
FAQs (Frequently Asked Questions)
1. What is the main difference between PMEGP and CMEGP scheme?
PMEGP is a central government scheme, while CMEGP is a
Maharashtra state government scheme.
2. What is the maximum subsidy under PMEGP?
The maximum subsidy is 35% depending on category and
location.
3. What is the maximum subsidy for CMEGP?
CMEGP subsidy can go up to around 35% to 50% depending on
category and project.
4. Does PMEGP require a CIBIL score?
Not officially, but banks check CIBIL score before approving
loans.
5. Can I apply for both PMEGP and CMEGP?
No, you can apply for only one scheme for the same project.
6. Which bank is best for PMEGP loan?
Major banks like SBI, Bank of Maharashtra, and PNB provide
PMEGP loans.
7. How long does it take to get PMEGP subsidy?
It may take several months to a few years depending on
processing and verification.
8. Is collateral required for PMEGP loan?
Loans up to certain limits may be collateral-free under
CGTMSE.
9. Who is eligible for CMEGP scheme?
Residents of Maharashtra aged 18 to 45 years with a new
business idea.
