Prime Minister's Employment Generation Programme (PMEGP)
The PMEGP is a central-sector scheme run by the Ministry of Micro, Small & Medium Enterprises , Government of India, with its national-level implementation through the Khadi & Village Industries Commission as the nodal agency. Launched by merging two earlier schemes in 2008-09, the scheme is approved for continuation for the period 2021-22 to 2025-26. The purpose of the scheme is to generate employment opportunities by establishing micro-enterprises in non-farm sectors, both in rural and urban areas. Your business could benefit by accessing credit-linked subsidy support to start or expand a micro-enterprise.
- Key Features
- Financial Assistance
- Eligibility Criteria
- Documents Required
- Application Process for the Scheme
Current Status of the Scheme
As of 05 March 2026, the Prime Minister’s Employment Generation Programme (PMEGP) has sanctioned 5,73,917 projects with bank loans worth ₹58,979.34 crore. The scheme has also disbursed ₹13,219.30 crore as margin money subsidy to 3,94,591 units, generating an estimated 31,56,728 employment opportunities.
Key Features
- Credit-linked subsidy scheme for new micro-enterprises: Under PMEGP you can set up a new unit and avail subsidy on the cost of the project while the balance is financed by the bank.
- Applicable in rural as well as urban areas: The scheme covers both rural and urban locations, recognising the need for employment generation beyond agricultural sector.
- Maximum project cost limits differ by sector: For example, for new units manufacturing sector the admissible maximum project cost is up to ₹ 50 lakh and for business/service sector up to ₹ 20 lakh.
- Beneficiary contribution required, subsidy percentage varies by area/category: The applicant must contribute part of project cost (e.g., 10 % for General category) and subsidy rate differs: e.g., rural general category 25 %, urban general 15 % etc. For special categories higher subsidy.
- Implemented via banks/financial institutions through nodal agencies: Implementation is through KVIC at national level, state KVIBs or KVIC directorates or District Industries Centres plus banks/finance institutions for sanction & disbursement.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- Individuals aged 18 years and above.
- Must have passed at least 8th standard for projects above ₹ 10 lakh or ₹ 5 lakh .
- Self-Help Groups, Societies, Charitable Trusts, and Co-operatives involved in production activity are eligible.
- The applicant should not have availed similar subsidy under other schemes.
Who Cannot Apply:
- Existing units or beneficiaries under PMRY, REGP, or any central/state subsidy scheme.
- Non-manufacturing/trading units not engaged in production or service activity.
- Applicants with loan defaults or blacklisted by banks.
Documents Required
- Identity proof of applicant
- Address proof
- Bank account in applicant’s name
- Project report including cost, item details, machinery list etc.
- Training certificate if EDP required
- Udyam registration certificate
- Any other documents as required by bank or nodal agency
Application Process for the Scheme
Option 1: Apply with Bullit
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Option 2: Apply via PMEGP Official Portal
- Visit KVIC online portal
- Register with Aadhaar & Udyam Registration number.
- Fill the online form .
- Upload DPR, ID proofs, and required documents.
- Application is forwarded to the bank for appraisal and sanction.
- Once approved, subsidy is released to the bank and adjusted after successful loan disbursal.
Option 3: Through District Industries Centre
- Visit DIC or KVIC field office.
- Participate in Entrepreneurship Development Programme training.
- Submit printed application with documents; bank forwards case for subsidy claim.
Related Schemes
Frequently asked questions
Who is eligible for PMEGP?
If you're 18 years or older and have a new business idea in the manufacturing or service sectors, you’re eligible to apply for the PMEGP Scheme. Special emphasis is placed on encouraging women, SC/ST/OBC and minority communities to benefit from the scheme. Make sure to carefully review the PMEGP scheme eligibility criteria before you apply to ensure you're on the right track!
What is the maximum loan amount in a PMEGP loan?
The maximum PMEGP loan amount is Rs.50 lakh for manufacturing projects and Rs.20 lakh for service sector projects.
Which banks are eligible for a PMEGP loan?
Most public sector banks, regional rural banks, and some private banks approved by KVIC are eligible to sanction PMEGP loans. You can find the list of participating banks on the official KVIC PMEGP portal.