What is PMEGP?
PMEGP (Prime Minister’s Employment Generation Programme) is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME).
- It is implemented by the Khadi and Village Industries Commission (KVIC) at the national level.
- At the state level, it is implemented through:
- State KVIC Directorates
- State Khadi and Village Industries Boards (KVIBs)
- District Industries Centers (DICs)
- Coir Board
These are collectively known as the Implementing Agencies.
Subsidy Amount
The scheme provides margin money subsidy based on the applicant category and project location:
- Special Categories (SC/ST/Women/Minorities/Ex-Servicemen/Transgenders/Aspirational Districts/NER):
- 35% subsidy in rural areas
- 25% subsidy in urban areas
- General Category:
- 25% in rural areas
- 15% in urban areas
- Subsidy applicable for projects up to:
- ₹50 Lakh (Manufacturing sector)
- ₹20 Lakh (Service sector)
Eligibility Criteria
- Minimum age: 18 years
- New business only – existing businesses are not eligible
- Educational Qualification: At least 8th standard pass for projects above ₹10 lakh (Manufacturing) and ₹5 lakh (Service)
- Applicant’s own contribution:
- 10% (General Category)
- 5% (Special Categories)
- No income ceiling to apply
- Project must include Capital Expenditure (Term Loan)
- Land cost is excluded from project cost
- All applicants must have a valid Aadhaar Number
- Consent is required to verify Aadhaar details via UIDAI
Required Documents (Scanned copies up to 1 MB)
- Passport-size photo
- Highest educational qualification
- Project Report Summary or Detailed Project Report
- Category certificate (if applicable)
- Rural area certificate (if applicable)
Financing Agencies
Applications are financed by:
- All Public Sector Banks
- Regional Rural Banks (RRBs)
- Co-operative Banks
- SIDBI
- Private Scheduled Commercial Banks (regulated by RBI and approved by SLMC)
Where to Apply ?
Official PMEGP Application Portal:
👉 https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp
Need help submitting the online application?
🎥 Watch this official video tutorial for Individual Applicants:
👉 Click here for the tutorial
Businesses NOT Allowed Under PMEGP
Certain businesses are not permitted under this scheme. These include:
- Meat processing, liquor sales, tobacco manufacturing, beedi/cigarette making, etc.
- Crop cultivation, animal husbandry, tea/coffee/rubber plantations, horticulture, etc.
- Manufacturing of polythene bags under 20 microns and harmful recycled plastic items.
- Pashmina processing or any activity availing Khadi sales rebate.
- Rural transport (except Auto Rickshaws in A&N Islands, Houseboats/Shikara/Tourist Boats in J&K, Cycle Rickshaws).
PMEGP is a golden opportunity to start your dream venture with government backing and financial support. Whether you’re from a rural background, belong to a special category, or simply looking for a new business opportunity – this scheme offers a robust foundation for self-employment.