PMEGP Scheme | Loans for Micro Enterprise Setup
Overview
Prime Minister’s Employment Generation Programme (PMEGP) is a central scheme implemented by the Khadi and Village Industries Commission (KVIC) in collaboration with state agencies. It provides credit-linked subsidy to individuals and groups for setting up new micro-enterprises in the manufacturing and service sectors.
Objective
PMEGP aims to generate sustainable self-employment opportunities in rural and urban areas by supporting the establishment of micro-enterprises. It helps absorb unemployed youth and traditional artisans into productive economic activity.
Benefits
- Subsidy of 15% to 35% on project cost depending on location and category
- Project funding up to Rs. 25 lakh for manufacturing and Rs. 10 lakh for services
- Bank loan covers the remaining project cost after subsidy and beneficiary margin
- Covers a wide range of manufacturing and service activities
- Online application and tracking through KVIC portal
Eligibility
- Any Indian citizen above 18 years of age
- Minimum education qualification of 8th standard for projects above Rs. 10 lakh
- Self-help groups, cooperative societies, and charitable trusts are also eligible
- New enterprises only; expansion of existing units is not covered
Exclusions
- Existing enterprises or those receiving other government subsidies for the same project
- Enterprises in tobacco, alcohol, and non-vegetarian food in certain categories
- Persons who have previously availed PMEGP, PMRY, or REGP benefits
Application Process
- Apply online through the KVIC PMEGP e-portal
- Select the bank and implementing agency during application
- Submit the application with project details and documents
- Application is reviewed by the District Task Force Committee
- Loan is sanctioned by the bank and subsidy is locked in the bank account
Documents Required
- Aadhaar card and PAN card
- Educational qualification certificates
- Project report
- Caste or special category certificate, if applicable
- Bank account details
- Photographs
