PMEGP — Prime Minister's Employment Generation Programme — Frequently Asked Questions
Answers to the questions founders most often ask about PMEGP — Prime Minister's Employment Generation Programme — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
Who can apply for PMEGP?
Any Indian citizen above 18 years of age who wants to set up a new micro-enterprise in manufacturing (project cost up to ₹50 lakh) or services/trading (up to ₹20 lakh) can apply. Existing units are generally not eligible, except for a second loan for upgradation.
What subsidy percentage does PMEGP offer?
The scheme offers a margin-money subsidy of 15% to 35% of the project cost. Higher subsidy rates apply for women entrepreneurs, SC/ST/OBC applicants, minorities, ex-servicemen, differently abled persons, and projects in rural/hilly areas.
Is equity taken under PMEGP?
No. PMEGP is a government subsidy scheme — no equity is taken. The subsidy portion is non-repayable; only the bank loan component needs to be repaid.
What is the income limit for general category applicants?
General category applicants must have an annual family income below ₹40 lakh per annum. There is no income ceiling for reserved categories.
What happens to the subsidy after disbursement?
The subsidy is locked as a Term Deposit Receipt (TDR) in the borrower's bank account for 3 years. After the lock-in period, it is adjusted against the outstanding loan principal.
Where do I apply for PMEGP?
Applications are submitted online through the KVIC e-portal at kviconline.gov.in/pmegpeportal. You can also approach your nearest District Industries Centre (DIC), KVIC office, or KVIB for guidance.
What documents are needed to apply for PMEGP?
Typically, applicants need to provide Aadhaar, educational certificates, a project report, and category certificates (if applicable) as part of the online application.
Can an existing business apply for PMEGP?
Existing units are not eligible for PMEGP funding unless they are seeking a second loan specifically for upgradation of an existing unit.
How much funding does PMEGP — Prime Minister's Employment Generation Programme provide?
PMEGP — Prime Minister's Employment Generation Programme provides ₹17.5L (up to) as subsidy. Always confirm the exact amount and any conditions on the official site, as figures can change between cohorts.
What is the application deadline for PMEGP — Prime Minister's Employment Generation Programme?
PMEGP — Prime Minister's Employment Generation Programme runs on a rolling basis with no fixed deadline — applications are accepted on an ongoing basis. Check the official site to confirm the window is currently open.
Is DPIIT recognition required for PMEGP — Prime Minister's Employment Generation Programme?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for PMEGP — Prime Minister's Employment Generation Programme, though having it can strengthen your application and unlock other benefits.
Who offers PMEGP — Prime Minister's Employment Generation Programme?
PMEGP — Prime Minister's Employment Generation Programme is offered by Ministry of MSME, a government body. It is provided as non-dilutive funding.
How do I apply for PMEGP — Prime Minister's Employment Generation Programme?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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