Sarkari Yojana
Prime Minister’s Employment Generation Programme
About Prime Minister’s Employment Generation Programme
Introduced in 2008 by the Ministry of Micro, Small, and Medium Enterprises (MSME), the Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme intended to create jobs by helping new micro-enterprises get off the ground in rural and urban areas alike. It fosters self-employment among traditional artisans, unemployed youth, and other qualifying beneficiaries in the non-farm sector. Implementation is carried out jointly by the Khadi and Village Industries Commission (KVIC), KVIBs, DICs, the Coir Board, and banks. The programme has been extended through 2021-22 to 2025-26 to keep driving enterprise creation and sustainable livelihoods nationwide.
Scheme Overview
Central Government
Ministry Of Micro, Small and Medium Enterprises
Khadi And Village Industries Commission (KVIC)
Individual
15 Aug 2008
Scheme Details
Eligibility Requirements
To qualify for Prime Minister's Employment Generation Programme, applicants must satisfy the following conditions:
For PMEGP new enterprises (Units)
Any individual aged above 18 years is eligible
Any individual aged above 18 years is eligible.
No income ceiling applies to assistance for setting…
No income ceiling applies to assistance for setting up projects under PMEGP.
Beneficiaries setting up a project costing over Rs.10…
Beneficiaries setting up a project costing over Rs.10 lakh in the Manufacturing sector, or over ₹ 5,00,000 in the Business/Service sector, must have passed at least VIII standard.
Assistance is available only for new projects sanctioned…
Assistance is available only for new projects sanctioned specifically under PMEGP.
Existing units (set up under PMRY, REGP, or…
Existing units (set up under PMRY, REGP, or any other Central or State Government scheme) and units that have already drawn a Government subsidy under any other Central or State scheme are not eligible. For up-gradation of existing PMEGP / REGP / MUDRA units
Margin Money (subsidy) claimed under PMEGP must be…
Margin Money (subsidy) claimed under PMEGP must be successfully adjusted once the lock-in period of 3 years ends.
The first loan taken under PMEGP/REGP/MUDRA must have…
The first loan taken under PMEGP/REGP/MUDRA must have been repaid in full within the stipulated time.
The unit must be profitable, with healthy turnover,…
The unit must be profitable, with healthy turnover, and show potential for further growth in turnover and profit once its technology is modernised/upgraded. Reservation / Preference / Priority Priority is extended to persons affected by natural calamities/disasters in areas the Ministry of Home Affairs has declared as affected by "disaster" under Section 2(d) of the Disaster Management Act, 2005.
Benefits Provided
Prime Minister's Employment Generation Programme provides the following benefits to eligible applicants:
PMEGP funding is available under two major heads: 1. Margin Money Subsidy
Annual Budget Estimates allocate funds for disbursing Margin…
Annual Budget Estimates allocate funds for disbursing Margin Money (subsidy) toward setting up new micro-enterprises/units; and
Out of the funds allocated under BE for…
Out of the funds allocated under BE for the Margin Money subsidy, ₹ 100 Crores or as approved by the competent authority will be earmarked for each FY toward disbursing Margin Money (subsidy) for the upgradation of existing PMEGP/REGP/MUDRA units. 2. Backward and Forward Linkages 5% of the total allocation under BE for a Financial Year against PMEGP, or as approved by the competent authority, is earmarked as funds under Backward and Forward Linkages, used by KVIC for awareness camps, State/District level monitoring meetings, workshops, exhibitions, bankers meetings, TNDA, publicity, Entrepreneurship Development Programme (EDP) training, physical verification & geo-tagging, evaluation & impact assessment studies, setting up an Entrepreneurship Facilitation Centre (EFC) and Centre of Excellence (CoE), engagement of Field Experts and Data Entry Operators (DEOs), creation and upgradation of IT infrastructure, awards, a Call Centre facility, PMU, and other related activities and settlement of residual liabilities. Levels of support under PMEGP 1. For setting up new micro-enterprise (units)
Categories of beneficiaries under PMEGP (for setting up…
Categories of beneficiaries under PMEGP (for setting up of new enterprises): General Category Beneficiary's contribution (of project cost): 10% Rate of Subsidy (of project cost): 15% for Urban Areas, 25% for Rural Areas.
Categories of beneficiaries under PMEGP (for setting up…
Categories of beneficiaries under PMEGP (for setting up of new enterprises): Special Category (including SC, ST, OBC, Minorities, Women, Ex-Servicemen, Transgenders, Differently abled, NER, Aspirational Districts, Hill and Border areas(as notified by the Government), etc.
Beneficiary's contribution (of project cost)
Beneficiary's contribution (of project cost): 05%
Rate of Subsidy (of project cost)
Rate of Subsidy (of project cost): 25% for Urban Areas, 35% for Rural Areas. Note:
The maximum cost of the project/unit admissible for…
The maximum cost of the project/unit admissible for Margin Money subsidy under the Manufacturing sector is ₹50,00,000.
The maximum cost of the project/unit admissible for…
The maximum cost of the project/unit admissible for the Margin Money subsidy under the Business/Service sector is ₹20,00,000.
Banks will provide the balance amount (excluding the…
Banks will provide the balance amount (excluding the own contribution) of the total project cost.
If the total project cost exceeds ₹50,00,000 or…
If the total project cost exceeds ₹50,00,000 or ₹20,00,000 for Manufacturing and Service/Business sector respectively, Banks may provide the balance amount without any Government subsidy. 2. 2nd Loan for Upgradation of Existing PMEGP / REGP / MUDRA Units
Categories of beneficiaries under PMEGP (for upgradation of…
Categories of beneficiaries under PMEGP (for upgradation of existing units): All Categories
Beneficiary's contribution (of project cost)
Beneficiary's contribution (of project cost): 10%
Rate of Subsidy (of project cost)
Rate of Subsidy (of project cost): 15% (20% in NER and Hill States). Note:
The maximum cost of the project/unit admissible for…
The maximum cost of the project/unit admissible for Margin Money subsidy under the Manufacturing sector for upgradation is ₹10,00,00,000, with a maximum subsidy of ₹15,00,000 (₹20,00,000 for NER and Hill States).
The maximum cost of the project/unit admissible for…
The maximum cost of the project/unit admissible for Margin Money subsidy under the Business/Service sector for upgradation is ₹25,00,000, with a maximum subsidy of ₹3,75,000 (₹5,00,000 for NER and Hill States).
Banks will provide the balance amount (excluding the…
Banks will provide the balance amount (excluding the own contribution) of the total project cost.
If the total project cost exceeds ₹10,00,00,000 or…
If the total project cost exceeds ₹10,00,00,000 or ₹25,00,000 for Manufacturing and Service/Business sector respectively, banks may provide the balance amount without any Government subsidy.
Documents Required
Applicants should keep the following documents ready before starting the application:
A caste certificate confirming the applicant's category
A caste certificate confirming the applicant's category
A special category certificate, where such status applies
A special category certificate, where such status applies
A certificate establishing rural area residence
A certificate establishing rural area residence
A detailed project report for the proposed enterprise
A detailed project report for the proposed enterprise
A certificate of education, EDP, or skill development…
A certificate of education, EDP, or skill development training completed
Any other document that applies to the case
Any other document that applies to the case
2008-08-15
How to Apply
Online Application
Applicants can apply for Prime Minister's Employment Generation Programme through the online application process outlined below.
Application For New Unit:
Application Portal: Open Application Portal ↗
Go to the official website.
Go to the official website.
Click "Apply" under the "Application For New Unit"…
Click "Apply" under the "Application For New Unit" tab.
Enter all the necessary details on the Online…
Enter all the necessary details on the Online Application Form, then click "Save Applicant Data".
On the following page, upload the required documents…
On the following page, upload the required documents and complete the final submission. Application For Existing Units (2nd Loan):
Go to the official website
Go to the official website.
Click "Apply" under the "Application For Existing Units…
Click "Apply" under the "Application For Existing Units (2nd Loan)" tab.
Open the Online Application tab and complete the…
Open the Online Application tab and complete the Online Application Form.
Fill out the form, move to the next…
Fill out the form, move to the next page, upload the required documents, and finalise the submission. Login Form For Registered Applicant of Second Loan Subsidy for Upgrading of Existing Unit:
Go to the official website of the PMEGP…
Go to the official website of the PMEGP Portal.
Enter your User ID and Password, then click…
Enter your User ID and Password, then click Log in.
Offline Application
Applicants can apply for Prime Minister's Employment Generation Programme through the offline application process outlined below.
Offline Application Form for Individual Applicant:
Enter all the necessary details on the Online…
Enter all the necessary details on the Online Application Form.
Submit the completed original form to the concerned…
Submit the completed original form to the concerned KVIC/KVIB/DIC/Coir Board Officer in the State.
Once submitted, the applicant is issued an Acknowledgement…
Once submitted, the applicant is issued an Acknowledgement Slip by the relevant KVIC/KVIB/DIC/Coir Board Office.
Exclusions / Who Is Not Eligible
**For PMEGP new enterprises (Units):**
1. Existing Units (under PMRY, REGP, or any other scheme of the Government of India or State Government) and the units that have already availed of Government Subsidy under any other scheme of the Government of India or State Government are not eligible.
1. Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The 'family’ includes self and spouse.
**Negative List of Activities:**
The following list of activities will not be permitted under PMEGP for setting up of micro
enterprises/ projects/units:-
1. Any Industry/ Business connected with Meat(slaughtered), i.e., processing, canning and/or serving items made of it as food, production/Manufacturing or sale of intoxicant items like Beedi/Pan/ Cigar/Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale will not be allowed.
1. Any Industry/Business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. Sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry will not be allowed.However, value addition under these will be allowed under PMEGP. Off Farm/Farm Linked activities in connection with sericulture, horticulture, floriculture etc. will also be allowed.
1. Activities prohibited by Local Government/Authorities keeping in view environment or socio-economic factors will not be allowed .
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.
Official Sources & References
- Guidelines-2023 →
- Guidelines-2022 →
- Final Guidelines For Second Loan →
- Exemption Of COVID Vears Viz. FY 2020-21 & FY 2021-22 While Considering Profitability Of Existing PMEGP/REGP/ MUDRA Units Applying For 2hd Loan Under PMEGP →
- Receipt Of Applications In Physical Form Under PMEGP →
- Return Or Refund Of PMEGP Margin Money Subsidy →
- Agency Wise Contact Details →
- FAQs →
- Scheme URL →