PMEGP
Prime Minister's Employment Generation Programme
Credit-linked subsidy for setting up new micro-enterprises in manufacturing and services.
Up to ₹50 Lakh projectFunding support15% – 35% subsidyIncentivekviconline.gov.inOfficial portal
Who can apply
- Individual aged 18+ (VIII pass for projects above ₹10L manufacturing / ₹5L services)
- Only new units — existing units and those already subsidised are not eligible
- Manufacturing projects up to ₹50L, service projects up to ₹20L
- SHGs, trusts, co-operatives and institutions registered under Societies Act also eligible
Key benefits
- Margin-money subsidy of 15%–25% (urban) and 25%–35% (rural/special categories)
- Own contribution only 5%–10%
- Second loan up to ₹1 Cr for upgradation with 15%–20% subsidy
- EDP training support
Documents needed
- Aadhaar & PAN of promoter(s)
- Detailed Project Report (DPR)
- Education certificate
- Caste/special category certificate (if any)
- Rural area certificate (if applicable)
How to apply
- Prepare a bankable DPR
- Apply online on the KVIC PMEGP portal
- District Task Force interview
- Bank sanction & EDP training
- Subsidy released to bank after 3-year lock-in
Am I eligible for PMEGP?
1What are you looking for?
2What's your business type?
3How much funding do you need?
4How old is the business?
5Owner category
Frequently asked
Can an existing business apply?
No — first-time PMEGP is only for new units. Existing PMEGP units can apply for the second (upgradation) loan.
Is collateral needed?
Projects up to ₹10L need no collateral; larger projects are covered under CGTMSE.
Related schemes
Collateral FreeMudra Loan (PMMY)Collateral-free loans for non-farm micro enterprises across Shishu, Kishore, Tarun and Tarun Plus.Up to ₹20 LakhView →High GrowthCGTMSECollateral-free term loans and working capital for micro & small enterprises, guaranteed by the government trust.Up to ₹10 CroreView →Venture DebtCredit Guarantee for StartupsGovernment guarantee on loans and venture debt to DPIIT-recognised startups from banks, NBFCs and AIFs.Up to ₹20 CroreView →
Information summarised from official guidelines; limits change — always verified against kviconline.gov.in before filing.