Prime Minister's Employment Generation Programme
A credit-linked subsidy scheme that helps entrepreneurs set up micro-enterprises with a margin-money subsidy of up to 35%.
Overview
PMEGP is a credit-linked subsidy programme to generate self-employment through micro-enterprises.
It is administered by KVIC in coordination with State KVIBs and District Industries Centres.
Beneficiaries receive a margin-money subsidy while the balance is financed by banks.
Eligibility Criteria
- Any individual above 18 years of age with a viable project.
- For projects above a certain cost, a minimum educational qualification may apply.
- Self-help groups, institutions and charitable trusts can also apply, subject to conditions.
Key Benefits
- Margin-money subsidy up to 35% for special categories in rural areas.
- Support for manufacturing projects up to ₹50 lakh and service projects up to ₹20 lakh.
- Bank credit covers the remaining project cost.
Required Documents
How to Apply
- 1Register and apply online on the PMEGP e-portal.
- 2Upload your project report and supporting documents.
- 3Your application is scored and forwarded to the financing bank.
- 4After sanction and disbursement, the margin-money subsidy is adjusted to your loan account.
Important Dates
| Programme launched | 2008 |
|---|---|
| Max project cost (manufacturing) | ₹50 lakh |
Frequently Asked Questions
Common questions about PMEGP.
The margin-money subsidy ranges from 15% to 35% depending on the category of the beneficiary and whether the unit is in an urban or rural area.
Manufacturing projects up to ₹50 lakh and service or business projects up to ₹20 lakh are supported under the programme.
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