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Prime Minister's Employment Generation Programme (PMEGP)

A 15% to 35% subsidy on a bank loan to start a micro-enterprise

LabourAll of India

Updated on 16 Oct 2026

What you get

PMEGP pays part of the cost of setting up a new micro-enterprise: 15% of the project cost in towns and 25% in villages for general-category applicants, who put in 10% themselves; 25% in towns and 35% in villages for special categories - including SC, ST, OBC, minorities, women, ex-servicemen, transgender and differently abled people - who put in 5%. A bank lends the rest. A project can cost up to Rs 50 lakh in manufacturing and Rs 20 lakh in business or services. Existing PMEGP, REGP and MUDRA units can also get help to upgrade.

Who can apply

Anyone above 18, with no income limit. A project costing more than Rs 10 lakh in manufacturing or Rs 5 lakh in business or services needs at least a Class VIII pass. Only new projects qualify: units already set up under another government scheme, or that have taken a government subsidy, cannot apply.

How to apply

Apply online on the KVIC PMEGP e-portal: choose Application for New Unit, fill in your details, upload the documents and submit. An existing unit seeking a second loan applies under Application for Existing Units (2nd Loan).

Documents you need

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