Prime Minister Employment Generation Programme (PMEGP)
Quick Scheme Parameters
Who is this scheme for?
- ●Individual Entrepreneurs (18+)
- ●Unemployed Youth
- ●Women Entrepreneurs
- ●SC / ST / OBC / Minorities
- ●Self Help Groups (SHGs)
SEVA is an independent information directory and is not affiliated with or operated by the Government of India or any government department. Scheme eligibility, benefits, deadlines and application requirements may change. Always verify information through the relevant official government source before applying.
01 // What is PMEGP Subsidy Scheme? (Overview)
The Prime Minister Employment Generation Programme (PMEGP) is a premier credit-linked subsidy initiative launched by the Government of India to generate sustainable self-employment opportunities across manufacturing and service sectors in rural and urban areas.
Who Can Apply & Eligibility Requirements
- ✓Individuals aged 18 years and above
- ✓Minimum 8th standard pass for manufacturing projects costing above ₹10 Lakhs and service projects above ₹5 Lakhs
- ✓Self Help Groups (SHGs) not availing benefits under any other central/state scheme
- ✓Institutions registered under Societies Registration Act, 1860
- ✓Production Co-operative Societies and Charitable Trusts
Who is NOT Eligible?
- ✕Existing units that have already availed government subsidies under PMRY, REGP, or PMEGP
- ✕Units engaged in meat, slaughterhouse, intoxicant manufacturing, or tobacco processing
- ✕Agricultural activities (farming, crop cultivation), except agro-processing and sericulture
- ✕Projects with total cost exceeding ₹50 Lakhs (Manufacturing) or ₹20 Lakhs (Services)
02 // Benefits & Financial Assistance / Subsidy Structure
15% to 35% Capital Subsidy on project costs up to ₹50 Lakhs for Manufacturing and ₹20 Lakhs for Service units.
| Beneficiary / Project Tier | Government Subsidy / Cover | Key Terms & Conditions |
|---|---|---|
| General Category (Urban) | 15% of Project Cost | Beneficiary contribution is 10% of project cost; remaining funded via bank term loan. |
| General Category (Rural) | 25% of Project Cost | Beneficiary contribution is 10% of project cost; higher subsidy to incentivize rural entrepreneurship. |
| Special Category (Urban - SC/ST/OBC/Women/Ex-Servicemen/Differently Abled) | 25% of Project Cost | Beneficiary contribution reduced to 5% of project cost. |
| Special Category (Rural - SC/ST/OBC/Women/Ex-Servicemen/Differently Abled) | 35% of Project Cost | Maximum subsidy tier available; beneficiary contribution is only 5%. |
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03 // Required Documents Checklist
04 // How to Apply (Step-by-Step Application Process)
Online Registration on KVIC Portal
Visit the official PMEGP e-Portal (kviconline.gov.in) and click on "Apply Online for PMEGP". Fill in personal, educational, and project details.
Upload Required Documents & DPR
Upload scanned copies of Aadhaar, PAN, Detailed Project Report, and category certificates in PDF format.
District Task Force Committee (DLTFC) Review
Your application is scrutinized by the District Level Task Force Committee and forwarded to your chosen financing bank.
Bank Loan Sanction & EDP Training
The bank assesses project viability, sanctions the term loan and working capital, and disburses funds upon completion of mandatory EDP training.
Margin Money Subsidy Lock-in
The government subsidy is kept in a separate Term Deposit Receipt (TDR) for 3 years, after which it is adjusted against the loan balance upon successful physical verification.
05 // Official Government Sources & Application Portals
KVIC PMEGP Official e-Portal
Primary central portal for direct online application submission and status tracking.
National myScheme Directory
Official Government of India portal for verified eligibility discovery and guidelines.
Ministry of MSME Official Website
Parent ministry portal detailing policy guidelines and circulars.
06 // Frequently Asked Questions About PMEGP Subsidy Scheme
Is collateral security required for a PMEGP loan?
No collateral security or third-party guarantee is required for PMEGP projects up to ₹10 Lakhs. For projects up to ₹50 Lakhs, units are covered under the CGTMSE credit guarantee scheme without requiring physical asset mortgages.
Can I apply for PMEGP if I already have an existing business?
PMEGP is primarily for establishing new micro-enterprises. However, existing well-performing PMEGP/REGP/MUDRA units can apply for a 2nd PMEGP loan up to ₹1 Crore for manufacturing (with a 15-20% subsidy) for technology upgradation and expansion.
What is the repayment tenure for a PMEGP bank loan?
The repayment period ranges between 3 to 7 years, including an initial moratorium period (usually 6 to 12 months) determined by the financing bank based on project cash flows.
Where should I verify the latest PMEGP circulars and application forms?
Always verify official guidelines directly on the Khadi and Village Industries Commission portal at kviconline.gov.in or the central myScheme portal at myscheme.gov.in.
07 // Related Government Schemes
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) facilitates third-party collateral-free credit from scheduled commercial banks, NBFCs, and financial institutions to new and existing micro and small enterprises by providing credit guarantee cover up to 85%.
MSME Sustainable (ZED) Certification Scheme
The MSME Sustainable (Zero Defect Zero Effect - ZED) Scheme incentivizes manufacturing micro, small, and medium enterprises to adopt world-class quality manufacturing processes while minimizing environmental impact.
PM Formalisation of Micro Food Processing Enterprises (PMFME)
The PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme provides financial, technical, and business support for the upgradation of existing unorganized micro food processing units and the creation of common infrastructure under the One District One Product (ODOP) framework.
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