Ministry of Micro, Small and Medium Enterprises
Prime Minister's Employment Generation Programme (PMEGP)
Government subsidy of 15–35% of project cost (25% urban and 35% rural for SC/ST/Women/Minority/Ex-Servicemen); maximum project ₹50 lakh (manufacturing) or ₹20 lakh (service) — can generate employment for 3–10+ people
One-time subsidy on loan disbursement; project loan repaid to bank over 3–7 years
PMEGP (Prime Minister's Employment Generation Programme) is a credit-linked subsidy scheme under the Ministry of MSME implemented by KVIC (Khadi and Village Industries Commission) to generate employment in rural and urban areas by setting up new micro-enterprises. Entrepreneurs receive a government subsidy of 15–35% of the project cost (depending on category and area), while the bank finances 75–85% of the rest. The maximum project cost is ₹50 lakh for manufacturing and ₹20 lakh for services, giving a maximum subsidy of up to ₹17.5 lakh.
Am I Eligible?
Quick check — answer 3 questions
Is your age between 18 and 100 years?
Is your annual family income under ₹1 Cr?
Do you live in India?
Benefit Details
Government subsidy of 15–35% of project cost (25% urban and 35% rural for SC/ST/Women/Minority/Ex-Servicemen); maximum project ₹50 lakh (manufacturing) or ₹20 lakh (service) — can generate employment for 3–10+ people
Provided by Central Government
One-time subsidy on loan disbursement; project loan repaid to bank over 3–7 years
Eligibility Criteria
Indian citizen above 18 years; minimum VIII standard pass for projects above ₹10 lakh (manufacturing) or ₹5 lakh (service); Self-Help Groups, cooperative societies, and charitable trusts also eligible for new projects only; no prior government subsidy on same project; not applicable for existing enterprises or expansion
18 to 100 years
Up to ₹1 Cr / year
Rural & Urban (Both)
Required Documents
💡 Tip: Keep original documents and 2 photocopies ready. Self-attest all photocopies.
How to Apply
Prepare Project Report
offlineWrite a detailed Project Report (DPR) covering: what you will produce/sell, estimated cost, machinery, raw material, market, and expected revenue. A good DPR is essential — banks and KVIC evaluate it carefully before approval. KVIC district offices can help.
Register on PMEGP e-Portal
onlineGo to kviconline.gov.in/pmegpeportal → click "Application for New Unit" → register with Aadhaar and mobile OTP → fill in personal details, category, project details, bank preference, and upload all documents → submit online application.
Interview with KVIC / DIC
offlineAfter application, you will be called for an interview by KVIC, District Industries Centre (DIC), or KVIB. They evaluate your DPR and business idea. Successful applicants are recommended to banks.
Complete EDP Training
offlineBefore final approval, you must complete an EDP (Entrepreneurship Development Programme) training of 5–10 days at a KVIC-approved institution. Training certificate is mandatory for loan disbursement.
Bank Loan and Subsidy
offlineAfter KVIC recommendation and EDP certificate, the bank sanctions the loan (75–85% of project cost). The government subsidy (15–35%) is placed in a Term Deposit Receipt (TDR) with the bank and adjusted after 3 years of successful operation.
Frequently Asked Questions
Quick Summary
Related Schemes
Pradhan Mantri MUDRA Yojana (PMMY)
Collateral-free business loans up to ₹20 lakh for micro and small businesses in manufacturing, trading, and services sectors at competitive interest rates
PM Vishwakarma Yojana
₹15,000 toolkit grant + Vishwakarma Certificate + skill training with ₹500/day stipend + collateral-free loan up to ₹3 lakh at 5% concessional rate
Startup India
DPIIT recognition certificate + 3-year income tax holiday under Section 80-IAC + angel tax exemption + 50–80% reduction in patent/trademark fees + priority in government tenders + self-certification for 9 labour laws + faster company winding-up (90 days)
Udyam Registration (MSME)
Free MSME registration with permanent 19-digit URN — unlocks collateral-free priority sector loans, 1–2% interest subvention, delayed payment protection (within 45 days), government tender reservations, and multiple state-level subsidies
⚠️ Disclaimer: Information is compiled from official government sources for guidance purposes. Eligibility and benefits may vary. Always verify with the official portal or nearest government office before applying.
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