PMEGP (Prime Minister’s Employment Generation Programme)
Credit‑linked subsidy for new micro‑enterprises through banks with margin money support, implemented by KVIC/KVIB/DIC to generate employment across manufacturing and services.
What is PMEGP?
PMEGP is a central sector, credit‑linked subsidy scheme to promote new micro‑enterprises, with KVIC as the national nodal agency and banks extending loans linked to margin money subsidy.
The maximum admissible project cost is ₹50 lakh for manufacturing and ₹20 lakh for service/trading; additional bank finance beyond these ceilings can be sanctioned without subsidy coverage.
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Why choose our PMEGP support?
High Subsidy Bands
Margin money subsidy ranges from 15% to 35% depending on category and location (urban/rural), reducing effective borrower outlay
Low Own Contribution
Own contribution is 10% for General category and 5% for Special category beneficiaries, supporting first‑time entrepreneurs
Bank‑Linked Disbursal
Banks appraise, sanction, and disburse loans; subsidy is locked and adjusted per scheme rules after unit stabilization
Upgradation Support
Existing PMEGP/REGP/MUDRA units can seek a second loan for upgradation with uniform 15% subsidy (20% in NER/Hill areas)
National Coverage
Implemented nationwide via KVIC, State KVIBs, and DICs with District‑level selection committees
Transparent E‑Tracking
Online portal and e‑tracking improve visibility and first‑in‑first‑served processing transparency
Eligibility Criteria
Who Can Apply?
- Any individual 18+ years; SHGs, producer co‑ops, societies, and charitable trusts are eligible
- Only new projects are eligible for subsidy under PMEGP
- Own contribution: 10% (General) or 5% (Special categories)
- Beneficiary category and rural/urban location determine subsidy rate
- EDP training completion is mandatory prior to first loan instalment
Conditions
- Max project cost: ₹50 lakh (manufacturing) and ₹20 lakh (service/trading)
- Working capital cap: up to 40% of project cost (manufacturing) and up to 60% (service/trading)
- Bank may sanction amount above ceilings, but excess is not subsidy‑eligible
- Normal bank interest; typical repayment 3–7 years with initial moratorium as per bank
- Upgradation: up to ₹1 crore (mfg) and ₹25 lakh (service) eligible for 15% subsidy (20% NER/Hill)
Simple Application Process
Apply on PMEGP Portal
Submit online application and project profile on the PMEGP e‑portal for consideration
District‑Level Selection
District Task Force Committee screens and recommends applications to banks based on viability and eligibility
Bank Appraisal & Sanction
Financing bank appraises the project, sanctions credit, and initiates subsidy procedures
EDP Training & Disbursal
Complete mandatory EDP training; bank disburses loan and manages margin money as per scheme norms
Apply on PMEGP Portal
Submit online application and project profile on the PMEGP e‑portal for consideration
District‑Level Selection
District Task Force Committee screens and recommends applications to banks based on viability and eligibility
Bank Appraisal & Sanction
Financing bank appraises the project, sanctions credit, and initiates subsidy procedures
EDP Training & Disbursal
Complete mandatory EDP training; bank disburses loan and manages margin money as per scheme norms
Required Documents
Document Checklist
Important: A detailed checklist is shared during onboarding; final documentation is as per bank and implementing agency requirements.
Frequently Asked Questions
Ready to apply for PMEGP?
Get a compliant project report, correct category mapping, and portal filing support to improve sanction and timely subsidy adjustment.
₹500Cr+
Funded
20K+
Businesses
95%
Success Rate