Prime Minister's Employment Generation Programme (PMEGP)

Credit-linked margin-money subsidy of 15-35% of project cost for setting up new micro-enterprises; the rest is a bank loan. Most supported units are rural.

Run by

Ministry of MSME / Khadi and Village Industries Commission (KVIC)

Funding

Amount varies

Maximum project cost Rs 50 lakh (manufacturing) and Rs 20 lakh (service). Subsidy: General category 15% urban / 25% rural; Special categories (SC/ST/OBC/minorities/women, ex-servicemen, PwD, NER, hill and border areas) 25% urban / 35% rural.

Your share

Own contribution 10% of project cost (General) or 5% (Special categories); balance as bank term loan.

Who can apply

• Individual above 18 years of age; no income ceiling
• New projects only
• At least VIII standard pass for projects above Rs 10 lakh (manufacturing) or Rs 5 lakh (service)
• Units that already availed subsidy under another central/state scheme are not eligible
• SHGs, registered societies and production co-operatives also eligible

How to apply

Apply online on the KVIC PMEGP e-portal; the application is routed to KVIC/KVIB/DIC and a bank.

Timing

Described as ongoing in the Government's Feb 2026 Union Budget 2026-27 MSME document; the 2021-22 to 2025-26 cycle has ended and a formal 2026-27 onward continuation notice was not found.

Last checked

2026-10-11

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