Central government scheme · Ministry of Micro, Small and Medium Enterprises (implemented by KVIC)

Prime Minister's Employment Generation Programme

Also called PMEGP

Prime Minister's Employment Generation Programme is a central scheme run by the Ministry of Micro, Small and Medium Enterprises and implemented by KVIC. It is for people setting up a new micro-enterprise outside farming with a bank loan. Beneficiaries get a subsidy of 25% of the project cost in rural areas and 15% in urban areas for the general category, and 35% rural and 25% urban for special categories. To apply, you apply online on the PMEGP e-portal of KVIC or the Jan Samarth portal, and your application is sent to a bank which appraises and sanctions the loan.

Written by AI from the official details below.

Apply on kviconline.gov.in

Who can apply for PMEGP

People setting up a new micro-enterprise in the non-farm sector with a bank loan.
Maximum project cost is ₹50 lakh for manufacturing and ₹20 lakh for services.
No educational qualification is needed for projects up to ₹10 lakh in manufacturing or ₹5 lakh in services.

PMEGP benefits

General category: subsidy of 25% of project cost in rural areas, 15% in urban areas.
Special categories (SC, ST, OBC, minorities, women, ex-servicemen, persons with disabilities, transgender persons, North-East, hill and border areas, Aspirational Districts): 35% rural, 25% urban.
Banks are not to insist on collateral for loans up to ₹10 lakh.
Well-performing existing PMEGP or MUDRA units can get a second loan of up to ₹1 crore for expansion, with a 15% subsidy (20% in the North-East and hill areas).

How to apply for PMEGP

Apply online on the PMEGP e-portal of KVIC; forms are available in English, Hindi and 19 regional languages.
PMEGP is also listed on the Jan Samarth portal.
Your application is sent to a bank, which appraises and sanctions the loan; the subsidy is released through the bank.

Where it applies

Every state and union territory. See what else applies near you

Checked

Checked against the sources below on 16 October 2026. Rules change, so confirm on the official site before you apply.

Prime Minister's Employment Generation Programme (16 Mar 2023) · Press Information Bureau (Ministry of MSME)
PMEGP assisted 63% of manufacturing units with project cost up to ₹10 lakh (2 Feb 2026) · Press Information Bureau (Ministry of MSME)
Year End Review 2025: Ministry of MSME (30 Dec 2025) · Press Information Bureau (Ministry of MSME)
From Enterprise to Empowerment: The MSME Story (26 Jun 2026) · Press Information Bureau
Jan Samarth Portal completes 4 years (5 Jun 2026) · Press Information Bureau

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