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ActiveCentral Sector SchemeLaunched 2008-08-15Verified: 2026-09-16

Prime Minister Employment Generation Programme (PMEGP)

Credit-linked capital subsidy scheme providing up to 35% margin money subsidy on bank loans up to ₹50 lakh for setting up micro-enterprises.

Government Levelcentral Government
Administering BodyMinistry of Micro, Small and Medium Enterprises
Beneficiary Sector
Business & EntrepreneurshipSkills & Employment
Applicable Jurisdiction
All India

₹Benefits & Entitlement Breakdown

Credit-linked margin money capital subsidy for setting up new micro-enterprises: Maximum project cost ₹50,00,000 for manufacturing units and ₹20,00,000 for service sector units. Beneficiary contribution is 10% for General category and 5% for Special categories (SC, ST, OBC, Women, Minorities, Ex-servicemen, Divyang, NER, border areas). Margin Money Subsidy rates: General category: 15% in urban areas, 25% in rural areas; Special categories: 25% in urban areas, 35% in rural areas. Second loan up to ₹1 Crore for manufacturing (₹25 lakh for services) with 15% subsidy for upgrading existing high-performing PMEGP units.

📊Budget Allocation & Beneficiary Reach

Fiscal Budget Allocation

₹2,800 Crore (Union Budget allocation for PMEGP margin money subsidies)

Official Budget Document ↗
Verified Beneficiary Reach

9.2+ Lakh micro-enterprises established, generating over 75+ Lakh jobs

As of: 2024-03-31PIB / Official Citation ↗

Verified Eligibility Criteria

Age Requirement:Minimum 18 years
Annual Family Income Ceiling:No gross income ceiling specified
Target Occupations:entrepreneur, artisan, unemployed_youth, self_employed, shg_member
Eligible Gender:all
Social Category / Reservation:all, SC, ST, OBC, Women, Minority
Specific Operational Conditions & Exclusions:

Individual must be aged 18 years or above. Must have passed at least Class VIII for projects costing above ₹10 lakh in manufacturing sector and above ₹5 lakh in business/service sector. Only for new projects; existing units under PMRY/REGP/PMEGP not eligible. Self Help Groups (SHGs) not availing other benefits also eligible.

Required Documents Checklist

  • ✓
    Aadhaar Card and PAN CardMandatory

    Mandatory applicant KYC identification.

  • ✓
    Detailed Project Report (DPR)Mandatory

    Comprehensive breakdown of capital expenditure, machinery, and cash flow projections.

  • ✓
    Highest Educational Qualification Certificate / Class 8 MarksheetMandatory

    Mandatory for projects > ₹10 Lakh (mfg) or > ₹5 Lakh (services).

  • ✓
    Caste / Special Category CertificateOptional / Supporting

    Mandatory to claim higher 25%–35% margin money subsidy.

  • ✓
    Rural Area Certificate from Gram PanchayatOptional / Supporting

    Mandatory to claim higher rural subsidy rates (25% or 35%).

How to Apply

1. Visit the official PMEGP e-Portal (https://www.kviconline.gov.in/pmegpeportal/). 2. Click on "Application for New Unit" and enter 12-digit Aadhaar number. 3. Fill in applicant name, sponsoring agency (KVIC, KVIB, or DIC), gender, social category, qualification, and communication address. 4. Provide proposed project details (manufacturing or service, project cost, equipment breakdown, working capital requirement). 5. Select preferred scheduled commercial bank branch. 6. Upload Detailed Project Report (DPR), educational certificate, caste/special category certificate, and photo. 7. Submit online; District Level Task Force Committee (DLTFC) scrutinizes the proposal and forwards approved applications to lending banks for sanction within 30 days. 8. Undergo mandatory Entrepreneurship Development Programme (EDP) training online (via e-EDP portal) before loan disbursement.

Official Government Application Portal

You will be redirected to the secure official portal: www.kviconline.gov.in

Apply on official government website

Frequently Asked Questions (Officially Sourced)

Verified answers sourced directly from official circulars, gazettes, and portal FAQs. Never AI-invented.

What is the maximum subsidy rate under PMEGP?

Special category beneficiaries (including SC, ST, OBC, Women, Minorities, and Divyang) setting up units in rural areas receive the highest subsidy of 35% of the project cost.

Source: Official Scheme FAQ ↗

Is Entrepreneurship Development Programme (EDP) training compulsory?

Yes, completing EDP training (online or offline) is mandatory for all sanctioned applicants before the first disbursement of the bank loan.

Source: Official Scheme FAQ ↗

Can an existing business apply for a PMEGP subsidy?

No, initial PMEGP loans are strictly for setting up new greenfield micro-enterprises. However, existing successful PMEGP units can apply for a second upgrade loan up to ₹1 Crore.

Source: Official Scheme FAQ ↗

Common Rejection Reasons & Warnings

Existing unit or previous beneficiary of PMEGP, PMRY, or REGP; project cost exceeding statutory ceilings; applicant below 18 years; failure to pass minimum 8th standard exam for projects > ₹10 Lakh (mfg) or > ₹5 Lakh (services).

Editorial Verification & Change Log

DateFieldDescription / UpdateSource Citation
2026-09-16initial_verificationBaseline verification of PMEGP guidelines, enhanced ₹50 Lakh project cost ceiling, and e-EDP protocols.Official Source ↗

Application Window & Deadlines

Open throughout the year (Continuous online portal)

Related Welfare Programs

Pradhan Mantri Mudra Yojana (PMMY)

Institutional micro-finance scheme providing collateral-free business loans up to ₹20 lakh across Shishu, Kishore, and Tarun categories.

PM Street Vendor AtmaNirbhar Nidhi (PM SVANidhi)

Micro-credit working capital loan facility providing collateral-free loans up to ₹50,000 with 7% interest subsidy and cashback for urban street vendors.

PM Vishwakarma Scheme

Comprehensive central support program for traditional artisans and craftspeople offering PM Vishwakarma certification, modern toolkits, and subsidized credit up to ₹3 lakh at 5% interest.

Official Helpline & Nodal Offices

Khadi and Village Industries Commission (KVIC) Nodal Office

Gramodaya, 3, Irla Road, Vile Parle (West), Mumbai - 400056

Helpline: 1800-3000-0034 / 022-26711002 (National PMEGP Helpdesk)

Jurisdiction: National (All-India)

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Verification Metadata

Last verified by Eligo researchers on 2026-09-16 against official government documentation.

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