Prime Minister's Employment Generation Programme
15–35% government grant (no repayment) for starting a new business unit
What is PMEGP?
Prime Minister's Employment Generation Programme provides a one-time government subsidy (called Margin Money) of 15% to 35% of the project cost — which does not need to be repaid — for setting up new micro-enterprises in manufacturing and service sectors. The balance is funded through a bank loan.
Key Benefits
• General category (urban): 15% subsidy | (rural): 25% subsidy
• SC/ST/Women/Ex-servicemen/Minorities/Differently-abled/NER/Hilly areas: 25% (urban), 35% (rural)
• Maximum project cost: ₹50 lakh (manufacturing), ₹20 lakh (services)
• Second PMEGP loan also available for expansion (up to 2nd project)
• Interest-free subsidy — the Margin Money is released to you once you repay 3 years of EMIs on the bank loan
Who is Eligible?
Any Indian citizen above 18 years with at least Class 8 pass for projects above ₹10 lakh in manufacturing or above ₹5 lakh in services. SHGs, charitable trusts, and co-operative societies are also eligible. Must not be availing subsidy under any other Central Government scheme for the same project.
Documents Required
• Aadhaar card and PAN card
• Educational qualification certificates
• Caste/category certificate (if applicable)
• Project report (detailed)
• Bank account details
• Address proof
• Photographs (passport size)
How to Apply
Apply online at kviconline.gov.in/pmegpeportal. Register, fill the application, attach documents, and submit. The application is reviewed by the District Industries Centre (DIC) or KVIC office. After interview and approval, you receive a bank sanction and the Margin Money (subsidy) is released by the government after 3 years of regular EMI repayment. The Seva Sankalp team can help with project report preparation.
Scheme Assistance
N. Senthilkumar Nagendran
BJP Zone Incharge, Tamil Nadu — leading Seva Sankalp Abhiyan to bring every Central scheme to your doorstep.
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