Prime Minister's Employment Generation Programme (PMEGP) — Frequently Asked Questions
Answers to the questions founders most often ask about Prime Minister's Employment Generation Programme (PMEGP) — who qualifies, the funding amount, required documents and how the application works.
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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