PMEGP
Prime Minister Employment Generation Programme
Credit-linked subsidy scheme for generating self-employment through establishment of micro-enterprises in non-farm sector. Get 15-35% subsidy on project cost.
Who Can Apply?
Age Criteria
Applicant should be above 18 years of age
Education
Minimum 8th pass for projects costing above ₹10 lakh
Business Type
New micro-enterprises in manufacturing, trading, or service sector
Location
Available for both rural and urban areas across India
Special Categories
Additional benefits for SC/ST, women, minorities, and differently-abled
Training
Preference given to candidates who have undergone entrepreneurship training
Key Features
Attractive Subsidy
Get 15-35% capital subsidy on project cost based on category and location (urban/rural)
Manufacturing Units
Maximum project cost of ₹50 lakh for manufacturing sector enterprises
Service Sector
Maximum project cost of ₹20 lakh for business/service sector enterprises
Employment Generation
Focus on creating sustainable self-employment and job opportunities
Easy Application
Online application through KVIC portal with minimal documentation
Pan-India Coverage
Available across all states and union territories through KVIC and state DIC
Scheme Benefits
Application Process
Online Registration
Register on PMEGP portal and complete online application form
Project Report
Submit detailed project report with cost estimates and business plan
Bank Processing
Application forwarded to bank for loan sanction and verification
Subsidy Release
After loan disbursement, subsidy amount credited to loan account
Documents Required
Frequently Asked Questions
What is the maximum project cost under PMEGP?
For manufacturing units, the maximum project cost is ₹50 lakh. For business/service sector, it is ₹20 lakh. The subsidy ranges from 15-35% based on category and location.
Who gets 35% subsidy under PMEGP?
Special categories (SC/ST, OBC, minorities, women, differently-abled, ex-servicemen, hill and border areas) get 35% subsidy in rural areas and 25% in urban areas.
Is collateral required for PMEGP loan?
No collateral is required for projects up to ₹10 lakh. For projects above ₹10 lakh, banks may ask for collateral as per their norms.
How long does PMEGP approval take?
After submission of complete documents, the processing typically takes 45-60 days. This includes bank loan sanction and subsidy approval.
Can I apply for PMEGP if I already have a business?
PMEGP is meant for new enterprises only. However, if you want to start a new unit in a different sector, you may be eligible. Existing units cannot apply.
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