Prime Minister's Employment Generation Programme (PMEGP)
Maximum project costManufacturing โน50 lakh, service โน20 lakh
Subsidy15% to 35%
Minimum age18 years
Applykviconline.gov.in/pmegpeportal
โ ๏ธ Subsidy rates and limits are based on a financial guide and can change. Confirm on the official portal before applying.
What is the scheme?
PMEGP is a Central Government scheme giving margin money subsidy along with a bank loan to start new manufacturing, service or trading units. Only new projects are covered.
Key benefits
- Maximum project cost: โน50 lakh for manufacturing, โน20 lakh for service/trading
- General category gets 15% subsidy in urban and 25% in rural areas
- Special categories (SC, ST, OBC, minorities, women, ex-servicemen, disabled etc.) get 25% urban and 35% rural
- Own contribution 10% for general and 5% for special category (per reports)
Eligibility โ who can apply
- Minimum age 18 years
- Only new projects
- At least Class 8 pass for manufacturing projects above โน10 lakh or service projects above โน5 lakh
- Must not have taken a government subsidy scheme benefit earlier
- No income limit is stated
Who is not eligible / things to note
- Existing running units
- Those who earlier took a government subsidy scheme benefit
- No subsidy if the bank does not sanction the loan
Documents required
- Aadhaar and PAN card
- Passport-size photographs
- Address proof
- Educational certificates (where applicable)
- Category/rural area certificate (where applicable)
- Detailed project report
- Machinery quotations
- Bank account details
How to apply (step by step)
- Open kviconline.gov.in/pmegpeportal and choose the application tab
- Fill personal, category, location and project details
- Attach documents and the project report, select the agency/bank and submit
- The bank checks feasibility; complete EDP training if required
- On approval the bank gives the loan and subsidy processing follows
Official sites are sometimes slow or down. If it doesn't open, try again later, or search the scheme name here: myScheme.gov.in โ
Frequently asked questions
How much subsidy does PMEGP give?
15% to 35% depending on category and area.
Can an existing business get it?
No, it is only for new projects.
Is the subsidy paid in cash?
No, it is linked to the loan sanctioned by the bank.
Beware: Do not pay any agent or website in the name of applying for a government scheme. Applying on the official portal is generally free. Do not share OTP, PIN or confidential bank details with anyone.