Prime Minister's Employment Generation Programme (PMEGP)
Credit-linked subsidy scheme from Ministry of MSME for establishing new micro-enterprises in manufacturing or services, with funding up to ₹50 lakh via banks.
- Funding amount
- ₹50L (subsidy)
- Funding type
- Subsidy
- Provider
- Ministry of MSME (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Prime Minister's Employment Generation Programme (PMEGP) is a central sector subsidy scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME) through the Khadi and Village Industries Commission (KVIC). It aims to generate sustainable employment opportunities in rural and urban India by helping entrepreneurs set up new micro-enterprises. The scheme provides financial assistance in the form of Margin Money (subsidy) that is linked to a bank loan. For manufacturing units, the project cost can be up to ₹50 lakh, with the subsidy capped at ₹25 lakh. For service units, the maximum project cost is ₹20 lakh, and the subsidy is up to ₹10 lakh. The subsidy is released to the bank and reduces the beneficiary's own contribution. The scheme is open to all individuals above 18 years of age, with no income ceiling, and applications are accepted on a rolling basis throughout the year.
Highlights
- Credit-linked subsidy for new micro-enterprises in manufacturing (up to ₹25 lakh) and services (up to ₹10 lakh).
- No income ceiling for applicants; any individual above 18 years can apply.
- Only new, viable projects are eligible; existing units or those previously subsidised are excluded.
- Education requirement: 8th standard pass for projects above ₹10 lakh (manufacturing) or ₹5 lakh (services).
- Rolling applications accepted online throughout the year via KVIC portal.
- Aadhaar number mandatory for application.
Who can apply
Any individual above 18 years of age can apply, with no upper income limit. For projects costing above ₹10 lakh in manufacturing or above ₹5 lakh in services, the applicant must have passed at least 8th standard. Only new, viable projects are eligible—existing units or those that have already received any government subsidy under schemes like PMRY, REGP, PMEGP, CMEGP, or any other Central/State scheme are not eligible. However, existing REGP/PMEGP/MUDRA units can apply for a second loan. Projects without Capital Expenditure (Term Loan) are not eligible, and the cost of land cannot be included in the project cost. Applicants must possess a valid Aadhaar number and consent to authentication. The unit must be a new one.
Prime Minister's Employment Generation Programme (PMEGP) is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Prime Minister's Employment Generation Programme (PMEGP) 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.
What the funding covers
- Funding: Up to ₹25 lakh subsidy for manufacturing projects (max project cost ₹50 lakh) and up to ₹10 lakh subsidy for service projects (max project cost ₹20 lakh).
- The subsidy is provided as Margin Money to the entrepreneur, reducing the loan amount needed.
- The funding is credit-linked—the subsidy is released to the bank, which then disburses the remaining loan.
- Beneficiaries also get access to bank loans for the balance project cost.
- The scheme covers both rural and urban areas across India.
About the provider
Prime Minister's Employment Generation Programme (PMEGP) 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.
Documents you’ll need
Before you apply to Prime Minister's Employment Generation Programme (PMEGP), 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.
Who this is best for
Prime Minister's Employment Generation Programme (PMEGP) is best suited for startups in India seeking non-dilutive funding of ₹50L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much funding can I get under PMEGP?
For manufacturing projects, you can get a subsidy (Margin Money) of up to ₹25 lakh, with the maximum project cost being ₹50 lakh. For service projects, the subsidy is up to ₹10 lakh, with the maximum project cost at ₹20 lakh.
What is the application deadline for PMEGP?
Applications are accepted on a rolling basis throughout the year—there is no fixed deadline.
Who is eligible to apply for PMEGP?
Any individual above 18 years of age is eligible, regardless of income. For projects costing above ₹10 lakh in manufacturing or above ₹5 lakh in services, the applicant must have at least an 8th standard pass. The project must be new and viable, and the unit must not have availed any previous government subsidy under similar schemes. A valid Aadhaar number is mandatory.
Is PMEGP a grant or a loan? Does it take equity?
PMEGP is a credit-linked subsidy scheme. The government provides a Margin Money subsidy that is adjusted against the loan amount. It does not take any equity from the business—the subsidy is non-dilutive.
Do I need DPIIT or MSME registration to apply?
The scheme does not require DPIIT recognition. However, as it is a Ministry of MSME scheme, having an MSME registration (Udyam) may be beneficial, but it is not explicitly stated as mandatory in the eligibility criteria.
What documents are needed to apply?
You need to upload: a passport-size photo, your highest educational qualification certificate, a project report, and if applicable, a social/special category certificate and a rural area certificate. You will also need your Aadhaar number for authentication.
How do I apply for PMEGP?
You can apply online through the KVIC portal at kviconline.gov.in/pmegpeportal. The process involves checking eligibility, authenticating your Aadhaar, generating a User ID and password, filling the application form, uploading documents, completing the score card, and submitting. You can also track your application status online.
Can existing businesses apply for PMEGP?
No, only new units are eligible. Existing units cannot apply. However, units that were previously financed under REGP, PMEGP, or MUDRA can apply for a second loan under this scheme.
Is there any cost of land covered under the project cost?
No, the cost of land cannot be included in the project cost under PMEGP.
Is there an education qualification required for all applicants?
No, there is no education qualification required if your project cost is ₹10 lakh or less in manufacturing, or ₹5 lakh or less in services. For higher-cost projects, you must have passed at least 8th standard.
Who offers Prime Minister's Employment Generation Programme (PMEGP)?
Prime Minister's Employment Generation Programme (PMEGP) is offered by Ministry of MSME, a government body. It is provided as non-dilutive funding.
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