Starting a business? There’s help from the government and support beyond it.

In India’s smaller towns, cities and local markets, thousands of hardworking people dream of running their own business. Whether it’s tailoring, a grocery store, mobile repair or a small manufacturing unit one thing remains common: they all need funding to start and grow.

To support this dream, the Government of India launched a special scheme called PMEGP – the Prime Minister’s Employment Generation Programme. It provides a business loan with a subsidy, so you can begin your business journey with confidence.

And to make this journey even smoother, HDB Financial Services offers additional support – so you can take control, expand faster and manage your business more efficiently.

Understanding PMEGP: A Government Scheme for First-Time Entrepreneurs

The PMEGP scheme is designed to promote self-employment by providing financial assistance to individuals who want to set up micro-enterprises in manufacturing or service sectors.

Key features of PMEGP include:

• Loan Amount:
  • Up to ₹25 lakh for manufacturing units
  • Up to ₹10 lakh for service units
• Subsidy:
  • 15% to 35%, depending on location and applicant category
• Eligibility Criteria:
  • Minimum 8th standard education
  • Age 18 and above
  • First-time entrepreneurs (no existing unit under same ownership)
• Application Process:
  • Online through KVIC PMEGP Portal
  • Processed through Khadi and Village Industries Commission (KVIC), DICs and banks

The scheme encourages people from small towns and rural regions to become job creators instead of job seekers.

Why Financial Support Beyond PMEGP is Often Required

While PMEGP provides a strong starting point, some practical challenges often emerge, especially in Tier 2 and 3 regions:

• Loan processing timelines may extend due to multiple verification steps
• Working capital needs may exceed the initial approved amount
• Seasonal businesses may require flexible repayment schedules
• Entrepreneurs may seek digital tools to track loans and manage finances

For such requirements, having a trusted financial partner like HDB Financial Services can make all the difference.

How HDB Business Loans Complement PMEGP

HDB Financial Services offers business loan solutions that are designed to support entrepreneurs in small and mid-sized cities with speed, transparency and ease of access.

Here’s how HDB adds value to your business journey:

Quick Disbursal

Business needs can’t wait. HDB offers fast loan processing with minimal documentation—especially helpful when funds are needed urgently before or after PMEGP approval.

Flexible Repayment Options

Choose repayment terms that suit your business’s income cycle. Whether seasonal or consistent, the EMI structure can be aligned accordingly.

Digital Loan Tracking via App

Through the   HDB OnTheGo mobile app, you can view your loan balance, EMI due dates, download statements and track your servicing status right from your phone.

Top-Up and Working Capital Support

If PMEGP covers part of your setup, HDB can provide the rest so you don’t compromise on business scale, machinery, or manpower.

Local Support, Nationwide Presence

With over 1900+ branches, HDB Financial Services is available across major districts and towns, with staff who understand your region and language.

Combining Government Subsidy with Private Lending: A Balanced Approach

Using both PMEGP and HDB Business Loans together allows business owners to strike a balance between subsidy-based support and flexible lending. This dual approach can lead to:

• Stronger financial confidence from the start
• Better cash flow management during the first year of operations
• Scalability without delays due to funding gaps
• Digital control over repayments and service requests
• Ongoing relationship with a financial partner as your business grows

Such a combination ensures that your enterprise is not just launched—it is also sustained.

Applying Made Easy: A Step-by-Step Overview

For PMEGP

• Visit https://www.kviconline.gov.in/pmegp/
• Choose “Online Application – Individual”
• Fill in personal, financial, and business details
• Upload necessary documents like Aadhaar, educational certificate, and project report
• Submit the application and wait for bank verification and approval

For HDB Business Loan

1. Download the  HDB OnTheGo App or visit the nearest HDB branch
2. Share basic details and business requirement
3. Submit minimum documentation as guided by staff

To know more about Business Loans Click Here