Prime Minister's Employment Generation Programme (PMEGP)
Ministry of MSME — KVIC (Nodal Agency) All Sectors GOVERNMENT SUPPORT ACTIVE

Prime Minister's Employment Generation Programme (PMEGP)

(Ministry of MSME — KVIC (Nodal Agency))
Primary Benefit

15–35% Capital Subsidy; Loans up to Rs.50 Lakh (Mfg.) / Rs.20 Lakh (Services)

Micro-enterprises in rural and urban areas — non-farm sector.

Dynamic Subsidy Scaling Matrices

Under the official guidelines of this scheme, final margin money subsidies scale dynamically based on your gender, region of business setup, and social categories. Below is the detailed rate catalog:

Gender-Based Subsidy
Men 25%
Women 35%
Regional Demographics
Rural 25%
Urban 15%
Hill Areas 35%
Caste / Social Groups
SC Group 35%
ST Group 35%
OBC Group 25%
General 15%

Benefits Details

  • Margin Money Subsidy: 15–35% of project cost
  • General (Urban): 15% | General (Rural): 25%
  • SC/ST/OBC/Women/Minorities/Ex-Servicemen (Urban): 25%
  • SC/ST/OBC/Women/Minorities/Ex-Servicemen (Rural): 35%
  • Manufacturing: project cost up to Rs.50 lakh
  • Service sector: project cost up to Rs.20 lakh
  • Beneficiary contribution: 10% (General) / 5% (Special category)
  • EDP training, workshops, backward and forward linkages

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.
Men: 25% Women: 35%
Category Required Rural Development
SC: 35% ST: 35% OBC: 25% General: 15%
Location Cover Any Areas.
Rural: 25% Urban: 15% Hill Areas: 35%
State Cover Applicable across all states of India.

Application Workflow Process

  • Register on KVIC PMEGP e-Portal (kviconline.gov.in)
  • Fill application form with business and personal details
  • Upload DPR, Aadhaar, bank details and other documents
  • Application routed through KVIC / KVIB / DIC to financing bank
  • Bank evaluates credit feasibility and sanctions loan
  • Subsidy released to TDR block account after verification
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 (reserved category)
  • Special Category Certificate (if applicable)
  • Rural Area Certificate (if applicable)
  • Bank Passbook / Cancelled Cheque
  • Udyam Registration (recommended)

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 — KVIC (Nodal Agency)
Category All Sectors
Max Subsidy 35%
Max Amount ₹5,000,000
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