Prime Minister's Employment Generation Programme (PMEGP)
Loans for a new micro-enterprise up to ₹50 lakh for manufacturing and ₹20 lakh for services, with a government subsidy of 15 to 35 percent
PMEGP helps you set up a new small manufacturing or service unit. The project can go up to ₹50 lakh if you are making something and up to ₹20 lakh if you are providing a service, and the government pays 15 to 35 percent of the project cost as a subsidy, depending on your category and whether the unit is rural or urban. The rest comes as a bank loan, and the scheme is run through the Khadi and Village Industries Commission.
Who can apply
- Aged 18 or above
- Setting up a new unit, since existing units are not covered
- Meets the minimum education requirement for larger projects as fixed under the scheme
- Has not already taken subsidy for the same unit under another government scheme
Who cannot apply
- Existing businesses looking to expand rather than a new unit
- Units that have already received subsidy under another government scheme
What to take with you
- Aadhaar card and PAN card
- Education certificates
- Caste certificate, if claiming the higher subsidy rate
- Project report showing cost and expected income
- Rural or urban address proof of the unit location
How to apply
Apply online at kviconline.gov.in, then attend the district task force interview; the file then goes to a bank for the loan and the subsidy is released through the bank.
Rejected or still waiting? Check these first
Most applications fail for a correctable reason, not because the applicant was ineligible. Before assuming you do not qualify, check each of these:
- Unit is an existing business rather than a new one
- Project report was weak or the costs could not be justified at the interview
- Already availed subsidy for the same activity under another scheme
Still stuck after checking all of these? Tell us what happened and we will help you work out which office to approach.