PM Employment Generation Programme (PMEGP)

About This Scheme

PMEGP is a credit-linked subsidy programme administered by the Khadi & Village Industries Commission (KVIC) in coordination with state governments and scheduled banks. It provides margin money subsidy of 15 to 35 percent of the project cost for setting up new micro-enterprises in both manufacturing and service sectors. Maximum project cost is 50 lakh rupees for manufacturing and 20 lakh rupees for service enterprises. The scheme has helped lakhs of first-generation entrepreneurs launch businesses across manufacturing trades, food processing, tailoring, handicrafts, and services, particularly in tier 2 and tier 3 cities where private funding is harder to access.

Ministry: Ministry of Micro, Small & Medium Enterprises

Eligibility

Any individual above 18 years of age; minimum 8th pass for projects above ₹10 lakh in manufacturing and ₹5 lakh in service sector; self-help groups, charitable trusts, and cooperative societies are also eligible. Only new projects are eligible; existing units are not covered.

Key Benefits

• Margin money subsidy: 15-35% of project cost depending on category and area
• General category in urban area: 15% subsidy
• General category in rural area: 25% subsidy
• Special category (SC/ST/OBC/Women/Minorities/Ex-servicemen/PH/NER/Hill) in urban: 25%
• Special category in rural area: 35% subsidy
• Balance project cost provided as bank loan

Application Process

1. 1Apply online at the KVIC PMEGP e-Portal
2. 2Choose the project type (manufacturing or service) and location
3. 3Submit project report with cost estimates
4. 4Application is forwarded to the District Task Force Committee (DTFC)
5. 5After DTFC approval, loan is sanctioned by the selected bank
6. 6Margin money subsidy is released directly to the bank

Documents Required

• Aadhaar Card
• Educational certificates (minimum 8th pass for projects above threshold)
• Caste/Category certificate (if applicable)
• Detailed Project Report (DPR)
• Address proof of proposed unit
• 2 passport-size photos

Official Links

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