Prime Minister’s Employment Generation Programme (PMEGP)

Prime Minister’s Employment Generation Programme

Prime Minister’s Employment Generation Programme (PMEGP)


The Prime Minister’s Employment Generation Programme (PMEGP) stands as a flagship initiative by the government of India to encourage entrepreneurship and job creation. This dynamic program is designed to facilitate the establishment of micro-enterprises in both urban and rural areas by providing financial assistance and support. PMEGP aims to transform individuals into successful entrepreneurs by offering financial aid to create viable and sustainable employment opportunities. By fostering the spirit of entrepreneurship, PMEGP contributes significantly to economic development, poverty alleviation, and the overall growth of small and medium enterprises.

At our platform, we recognize the transformative impact of the Prime Minister’s Employment Generation Programme and are committed to spreading awareness and facilitating engagement with this initiative. Through informative resources, success stories, and guidance on the application process, we aim to empower aspiring entrepreneurs to leverage the opportunities presented by PMEGP effectively. Whether you are seeking financial assistance for your entrepreneurial venture or looking to stay informed about the latest developments in the program, our Website serves as a valuable resource hub for individuals passionate about realizing their entrepreneurial dreams through the PMEGP.

Eligibility & Conditions:

  • Target Beneficiary: Unemployed rural and urban youth;
  • Eligibility Criteria: Any individual above 18 years of age, SHGs, Charitable trusts, Registered Societies, etc.
  • Budget for FY 20-21: Rs. 2500 Crores
  • Details of the scheme: It is an appraised and financed subsidy program to set up micro-enterprises. Hence, a Project Report will be required;
  • Allowed Project Cost: for Manufacturing Unit: Rs. 25 lakh; Service Sector Unit: Rs. 10 lakh; Trading SectorUnit Rs. 10 lakh in North Eastern Region, LWE-affected districts and Andaman & Nicobar Islands.
  • Subsidy: General Category: 15% of the project cost in urban areas, 25% in rural areas;
  • Subsidy for Special Category(SC/ST/OBC/ Minorities/Women/ NER/Hill Areas): 25% in urban, 35% in rural areas
  • Contribution of the Entrepreneur: General: 10 %, Special category: 5 %.

Assistance for upgradation and expansion of successful/well-performing existing units:

  • The maximum cost of the project under the manufacturing sector for up-gradation is Rs.1.00 crore, and Rs.25.00 lakh under the Service/Trading sector;
  • The maximum subsidy would be 15% of the project cost (20% for NER and Hill States). Banks provide the total project cost balance as a term loan.

Steps to Take:

  • It is a fully online scheme. The applicant can apply online only;
  • The applicant should apply via the following Website-
  • The applicant is to follow the guidelines of this portal.
  • In case of help is required, the applicant may contact the nearest office of the Khadi and Village Industries Commission (KVIC), District Industries Center (DIC), State Khadi and Village Industries Board (KVIB), or Coir Board;
  • The applicant can choose an Implementing Agency from the KVIC/KVIB/DIC/Coir Board. These agencies will support in checking the documents and help in project DPR preparation;
  • Implementing Agencies may suggest some corrections before forwarding the proposal to the Bank;
  • Since it is a bank-financed scheme, based on the project’s strength, the Bank decides about the loan and the loan amount to the applicant. Hence, the applicant should prepare a sound and sustainable business plan;
  • On sanction of loan, the Bank will inform the applicant and also the concerned Implementing Agency;
  • The implementing Agency will arrange for the Entrepreneurship Development Programme (EDP) Training for the applicant, which is available online as well;
  • Upon EDP completion, a certificate is issued to the applicant, and the same is to be submitted along with the applicant’s contribution to the concerned Bank to get the first installment of the loan.


The applicant should apply on the following Website-

For more information:
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