PMEGP — Prime Minister's Employment Generation Programme

The Prime Minister's Employment Generation Programme (PMEGP) is a central sector scheme administered by the Ministry of MSME through the Khadi and Village Industries Commission (KVIC). It provides a margin-money subsidy ranging from 15% to 35% of the project cost to help new micro-enterprises start up with lower personal contribution. The subsidy percentage is higher for women, SC/ST, OBC, minorities, ex-servicemen, differently abled persons, and those in rural or hilly areas. Project costs for manufacturing units cannot exceed ₹50 lakh, and for service units, the ceiling is ₹20 lakh. The bank provides the remaining amount as a composite loan. The subsidy is not given as cash upfront but is credited as a Term Deposit Receipt (TDR) locked for three years, after which it is adjusted against the loan. This scheme is especially valuable for first-time entrepreneurs who lack sufficient collateral or capital, as it significantly reduces their own contribution requirement while avoiding any equity dilution.

• Offers a 15%–35% margin-money subsidy (non-repayable) for new micro-enterprises, with higher rates for women and reserved categories.
• Manufacturing projects up to ₹50 lakh and service projects up to ₹20 lakh are eligible.
• Subsidy credited as a TDR locked for 3 years, then adjusted against the loan principal.
• No equity taken — only the bank loan portion is repayable.
• Implemented by KVIC, KVIB, and District Industries Centres across India.
• Applications submitted online via the KVIC e-portal with a rolling deadline.

PMEGP is available to any Indian citizen aged 18 years or older who wants to set up a new micro-enterprise in manufacturing (project cost up to ₹50 lakh) or services/trading (project cost up to ₹20 lakh). Existing units are generally not eligible, except for a second loan aimed at upgradation. For general category applicants, the annual family income must be below ₹40 lakh, while reserved categories have no income ceiling. The scheme covers all states and union territories, and applicants from rural areas receive higher subsidy rates.

PMEGP — Prime Minister's Employment Generation Programme is open to startups at any stage. It is open to startups registered anywhere in India.

PMEGP — Prime Minister's Employment Generation Programme accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

PMEGP provides a margin-money subsidy of 15% to 35% of the eligible project cost, directly reducing the amount you need to repay as a loan. The subsidy value can go up to ₹1.75 lakh based on the maximum ceiling. The scheme is particularly generous for women, SC/ST, OBC, minority, ex-serviceman, differently abled, and rural applicants, who receive higher subsidy rates. There is no equity dilution; the subsidy is a non-repayable government contribution locked as a TDR for 3 years and then applied to your loan. The bank provides the remaining project cost as a composite loan, making PMEGP a one-stop funding solution for new micro-enterprises in manufacturing and services.

PMEGP — Prime Minister's Employment Generation Programme is offered by Ministry of MSME, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

Before you apply to PMEGP — Prime Minister's Employment Generation Programme, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

PMEGP — Prime Minister's Employment Generation Programme is best suited for startups in India seeking non-dilutive funding of ₹17.5L. If that describes your startup, review the eligibility criteria above before applying.