The Prime Minister’s Employment Generation Programme (PMEGP) is the biggest self-employment subsidy scheme in India — set up a new manufacturing unit (project up to ₹50 lakh) or service unit (up to ₹20 lakh) and get 15–35% of the project cost as outright government subsidy, with the rest as a bank loan.
Key facts
| Project limits | ₹50 lakh (manufacturing) / ₹20 lakh (services) |
| Subsidy (general) | 25% rural / 15% urban |
| Subsidy (special categories) | 35% rural / 25% urban — SC/ST, OBC, women, minorities, ex-servicemen, PwD, NE & border areas |
| Own contribution | 10% (general) / 5% (special categories) |
| Who | Individuals 18+, SHGs, trusts, societies; new units only |
| Portal | kviconline.gov.in (PMEGP e-portal) |
Eligibility
- Age 18+; no income ceiling
- For manufacturing projects above ₹10 lakh and service projects above ₹5 lakh: minimum 8th pass
- Only new units — existing businesses and units that already took government subsidy are excluded
- One person, one PMEGP unit (a second-loan option exists for successful expanding units — up to ₹1 crore for manufacturing upgradation)
How to apply
- Apply online on the PMEGP e-portal (kviconline.gov.in) with your project report, Aadhaar, education and category certificates
- Choose your implementing agency — KVIC, KVIB or District Industries Centre (DIC)
- District task force scrutiny/interview; approved applications go to your chosen bank
- Bank appraises and sanctions the loan; you deposit your own contribution
- Complete the mandatory EDP training (online/offline) before disbursement
- The subsidy (margin money) is parked with the bank and adjusted after 3 years of successful running
Application is free — track status online with your application ID.
Tips for approval
- Pick a project with a solid local market; sample project reports are available on the portal
- Keep your CIBIL record clean — bank sanction is the make-or-break stage
- Scale the project to what you can run: over-sized projects fail bank appraisal
- Special-category applicants should attach certificates upfront for the higher subsidy
Frequently asked questions
Is the subsidy really non-repayable?
Yes — the margin money becomes a grant if the unit survives and operates for 3 years; otherwise it is recovered.
PMEGP vs Mudra — which one?
PMEGP gives a capital subsidy for new units with a longer process; Mudra is faster pure credit for smaller needs. Big new manufacturing/service units → PMEGP.
Related schemes
Disclaimer: PMYojanaUpdates.com is an independent information portal, not affiliated with any government department. Always verify details on the official site kviconline.gov.in before applying.