Prime Minister's Employment Generation Programme (PMEGP)
Ministry of MSME Manufacturing GOVERNMENT SUPPORT ACTIVE

Prime Minister's Employment Generation Programme (PMEGP)

(KVIC)
Primary Benefit

Upto 35% subsidy (Max eligible loan: ₹5,000,000)

<p>The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy programme aimed at generating sustainable employment opportunities through establishment of new micro enterprises in rural and urban areas in the non-farm sector. The scheme is administered by the Ministry of MSME, Government of India, with KVIC as the nodal agency at national level.</p>

Benefits Details

  • Margin Money Subsidy from 15% to 35% of project cost
  • Project cost eligible up to ₹50 Lakhs for Manufacturing sector and ₹20 Lakhs for Service sector
  • Special category beneficiaries get higher subsidy
  • Bank provides remaining project loan after beneficiary contribution
  • Support through EDP training, workshops, exhibitions, backward & forward linkages
  • General category: 15% (urban) / 25% (rural)
  • Special category (SC/ST/OBC/Women/Minorities/Ex-Servicemen/Transgenders/NER/Aspirational District): 25% (urban) / 35% (rural)
  • Beneficiary contribution: 10% (General) / 5% (Special category)

Who can apply?

Any individual meeting the following guidelines is eligible for applying under this scheme:

Target Beneficiary Eligibility Criteria
Age Limit Min Age: 18 years old. Max Age: 55 years old.
Target Gender Suitable for Any category of applicants.
Category Required General, SC, ST, OBC, Women, Minorities
Location Cover Any Areas.
State Cover Applicable across all states of India.

Application Workflow Process

1
Online Submission

Submit your promoter profile and bank-ready DPR details on the official nodal portal.

2
Nodal Review

Department agency verifies your details and forwards recommendation to local banks.

3
Bank Sanction

Bank evaluates credit feasibility and sanctions the term loan and working capital.

4
Subsidy Release

Nodal agency releases capital margin money subsidy to a TDR block accounts.

Required Documents Checklist

Keep the following digital copies ready before filling out the online application form:

  • Aadhaar Card
  • PAN Card
  • Passport Size Photo
  • Project Report / DPR
  • Educational Qualification Certificate (if applicable)
  • Caste Certificate (for reserved category)
  • Special Category Certificate (if applicable)
  • Rural Area Certificate (if applicable)
  • Bank Passbook / Cancelled Cheque
  • Udyam Registration (recommended/where a

Frequently Asked Questions

No. Government support programs are strictly intended for setting up **new** micro enterprises and commercial expansions. Existing units availing of other programs are not eligible.

The program offers margin capital subsidy. However, bank credit interest schedules will be charged at standard commercial base lending rates unless supplemented by state interest refund policies.

The Entrepreneurship Development Programme (EDP) training course is mandatory for all subsidy releases and takes around 5 to 10 days depending on the project investment scale.
Quick Info
Ministry Ministry of MSME
Category Manufacturing
Max Subsidy 35%
Status Active
Need Help?

Contact your local District Industries Centre (DIC) or Sri Yojana support desk for guidance and project filing support.

Request Guidance
Tags
prime-minister-s-employment-generation-programme-pmegp subsidy micro-enterprise