About PMEGP Scheme | Udyog Mitra CSC

About PMEGP Scheme

Prime Minister’s Employment Generation Programme – Official Scheme Overview

All information related to the PMEGP (Prime Minister’s Employment Generation Programme) loan scheme, including eligibility criteria, loan amount limits, subsidy structure, and application process, has been compiled and referred from the official PMEGP portal operated by KVIC: https://www.kviconline.gov.in/pmegpeportal/.

PMEGP is a credit-linked subsidy scheme launched by the Ministry of MSME to generate employment in the non-farm sector by establishing micro-enterprises in rural and urban areas.

The scheme provides financial assistance in the form of margin money (subsidy) and bank loans to help entrepreneurs start new self-employment ventures. The objective is to promote entrepreneurship and create sustainable employment opportunities for unemployed youth and traditional artisans.

Implementation of the PMEGP scheme is handled by the Khadi and Village Industries Commission (KVIC) along with State KVIBs and District Industries Centres (DICs).

Key Aspects of PMEGP

Objective
To generate employment by setting up new micro-enterprises, primarily in the non-farm sector.
Implementation
Administered by the Ministry of MSME and implemented by KVIC, State KVIBs, and District Industries Centres (DICs).
Financial Assistance
Credit-linked subsidy where the government provides margin money subsidy and banks provide loans.
Project Cost Limits
Manufacturing: Up to ₹50 lakh
Service/Business: Up to ₹20 lakh
Beneficiary Contribution
Entrepreneur must contribute a portion of the project cost (generally 5–10% depending on category).
Eligible Beneficiaries
Unemployed youth, traditional artisans, SC/ST/OBC, women, special category beneficiaries, and SHGs.

How PMEGP Works

  1. Entrepreneurs apply for a loan under the PMEGP scheme.
  2. Project proposal is prepared and examined by KVIC / KVIB / DIC.
  3. Banks sanction the loan based on project viability.
  4. Government subsidy (margin money) is routed through KVIC to the beneficiary’s bank account after physical verification.
  5. The subsidy amount remains locked for a prescribed period as per PMEGP guidelines.

Required Documents for Application

Mandatory Documents:

  • Aadhaar Card
  • PAN Card
  • Passport Size Photograph
  • Educational Certificate
  • Bank Passbook (Front Page)
  • Rural Area Certificate (for rural projects only)

Optional / Supporting Documents:

  • Ration Card
  • Electricity Bill
  • Residential Certificate
  • Experience Certificate
  • Skill Certificate
  • Income Tax Returns (last 3 years, if available)
  • GST / Shop Registration / MSME (Udyam) Certificate
Legal Disclaimer:
This platform is a private consultancy service provider and is not affiliated with, endorsed by, or representing any government department, KVIC, bank, or PMEGP authority. The official PMEGP application process is provided free of cost by the government. Any service fee charged by us is solely for professional consulting, guidance, and documentation support. Users are advised to verify all scheme details directly from the official PMEGP website before proceeding.