PM Employment Generation Programme (PMEGP)
15–35% margin money subsidy for new micro-enterprises in manufacturing & service sectors
About This Scheme
Prime Minister's Employment Generation Programme (PMEGP) is a flagship credit-linked subsidy scheme providing margin money subsidies of 15–35% to first-generation entrepreneurs setting up new micro-enterprises. The scheme is administered through KVIC, KVIB, and DICs.
Eligibility Criteria
- 1Any Indian citizen above 18 years of age
- 2Minimum 8th pass for projects above ₹10 lakh (manufacturing) / ₹5 lakh (service)
- 3Only new projects are eligible—no expansion of existing businesses
- 4Self Help Groups, Charitable Trusts, and Cooperative Societies
- 5SC/ST, OBC, women, ex-servicemen receive higher subsidy rates
Key Benefits
35% subsidy for special categories in rural areas
25% subsidy for general category in rural areas
25% subsidy for special categories in urban areas
15% subsidy for general category in urban areas
Project cost up to ₹50 lakh for manufacturing, ₹20 lakh for services
Application Process
Register on PMEGP E-portal (kviconline.gov.in/pmegpeportal)
Fill online application and submit DPR
Screening by District-Level Task Force Committee (DLTFC)
Bank appraisal and loan sanction
Subsidy disbursement and 3-year lock-in period
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