PMEGP

Prime Minister’s Employment Generation Programme (PMEGP)

What is PMEGP?
The PMEGP is a credit-linked subsidy scheme launched in 2008 by the Government of India, designed to generate employment and self-employment opportunities across rural and urban areas. The scheme merges two earlier programs (PMRY and REGP) and is managed nationally by the Khadi and Village Industries Commission (KVIC).

Key Features:

  • Objective: Generate continuous, sustainable employment through setting up of new micro-enterprises for unemployed youth and traditional artisans.​

  • Financial Outlay: ₹13,554.42 crore approved for 2021-22 to 2025-26 to setup ~4 lakh micro-enterprises creating ~30 lakh employment.​

  • Project Cost Limits:

    • Manufacturing sector: Maximum ₹50 lakh

    • Business/Service sector: Maximum ₹20 lakh​

  • Subsidy Rates:

    • General Category (except women): 15% (urban) and 25% (rural) subsidy

    • Special Category (SC/ST/OBC/Women/Ex-Servicemen/Disabled/NER): 5% beneficiary contribution, 25% (urban) to 35% (rural) subsidy​.

  • Tenure: 3-7 years repayment period with moratorium options.​

  • Self Contribution: 10% beneficiary contribution for General category and 5% for Special Category.

  • Credit Guarantee: CGTMSE coverage ensures no collateral requirement.​

Eligibility Criteria:

  • Individual above 18 years of age.​

  • No income ceiling.​

  • VIII standard education required only for projects above ₹10 lakh (manufacturing) or ₹5 lakh (service).​

  • New projects only (no existing units).​

  • Self-help groups, cooperatives, trusts, and registered institutions also eligible.​

Benefits:

  • Subsidy support reduces borrowing burden.​

  • CGTMSE guarantee eliminates collateral needs.​

  • Marketing support through KVIC outlets and exhibitions.​

  • Entrepreneurship Development Programme (EDP) training provided.​

  • Flexible repayment with moratorium period.​

  • Can be used for both manufacturing and service sector businesses.​

Application Process:

  1. Visit kviconline.gov.in/pmegp.​

  2. Complete online application form with basic project details.​

  3. In Sponsored Agency select DIC. 

  4. Submit required documents.

  5. Name of Bank and Branch from where ​you want loan. 

  6. Select the marks where you find yourself eligible.
  7. Upload ncessary documents and Submit the form.

  8. Complete mandatory EDP training (2 weeks) after sanctioning the loan from Bank.​

  9. Subsidy will be credited after loan disbursement.​

    Documents Required:

    1. Aadhar Card.

    2. Passport Size Photo

    3. Education Qualification Certificate

    4. Population Certificate (Only for rural get it from Sarpanch)​

    5. Bank Passbook
    6. Experience Certificate if any

Scroll to Top