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Prime Minister Employment Generation Programme (PMEGP) -Know More

Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy programme administered by the Ministry of Micro, Small and Medium Enterprises, Government of India. Khadi & Village Industries Commission (KVIC), is the supreme agency at national level for implementation of the scheme. At the State level, the Scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The maximum cost of the project/unit admissible under manufacturing sector is Rs.25 lakh and under business/service sector is Rs.10 lakh.

The Scheme provides employment to opportunistic  to unemployed people and also give them opportunity by not letting them to be a burden to their family .Only one person from family is eligible for obtaining financial assistance under the scheme. Assistance under the Scheme is available only for new projects The assistance under the scheme will not be available to activities indicated in the negative list under the scheme.


General category beneficiaries can avail of margin money subsidy of 25 % of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as scheduled caste/scheduled tribe /women the margin money subsidy is 35% in rural areas and 25% in urban areas.

The maximum cost of the project/unit admissible under manufacturing sector is Rs.25 lakh and under business/service sector is Rs.10 lakh.

Own contribution 5% to 10% of project cost.

Per capita investment should not exceed Rs. 1.00 lakh in plain areas and Rs. 1.50 lakhs in Hilly areas.


VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector.

An Individual above 18 years of age can apply

Any Individual in any other existing schemes under employment are not eligible

How to Apply

Submit documents to bank

Apply online application in kvic website

You will see an interview process by kvic/dic/kvib chosen nodal agency .

Make sure you attend the interview and also be confident on the project in which you are going to work on

Bank will initiate the application process

Get sanction later from bank and submite in kvic/kvib/dic

Talk to banks who is ready to give loan to your project get a communication letter from bank and submit in interview if your project is selected it will get forwarded to bank

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  • Morri Kailasa Rao December 18, 2018, 4:38 PM



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