Schemes / Government of India
Prime Minister's Employment Generation Programme (PMEGP)
Central schemeEntrepreneurMSMEJob seeker
Credit-linked subsidy for setting up new micro enterprises in manufacturing and services, implemented by KVIC, state KVIBs and District Industries Centres. The approved scheme period ran to 2025-26, so check the portal for current status.
What you get
A margin-money subsidy on bank loans: 15% (urban) or 25% (rural) of project cost for general category applicants, and 25% (urban) or 35% (rural) for special categories such as SC/ST, OBC, minorities, women, ex-servicemen and persons with disabilities. The maximum project cost is ₹50 lakh for manufacturing and ₹20 lakh for services.
Who can apply
- Individuals aged 18+; for projects above ₹10 lakh (manufacturing) or ₹5 lakh (services), at least Class 8 pass
- New projects only; SHGs, trusts, societies and cooperatives also eligible
- Own contribution of 10% of project cost (5% for special categories)
How to apply
- Apply online on the KVIC PMEGP e-portal with your project report
- Attend the interview by the district task force committee; the bank sanctions the loan
- Complete the Entrepreneurship Development Programme training to release the subsidy
Documents usually needed
- Aadhaar
- Project report
- Educational and category certificates
- Rural area certificate (if applicable)
Nodal authority: Ministry of Micro, Small and Medium Enterprises. Amounts and rules change — the official page is the final word.