Prime Minister's Employment Generation Programme (PMEGP)

About the Scheme

PMEGP is a credit-linked subsidy programme launched in 2008 by merging PMRY and REGP schemes. It aims to generate employment by setting up micro-enterprises in non-farm sector. Subsidy is 25% (urban) to 35% (rural) of project cost for general category, and 35% (urban) to 35% (rural) for special category. Maximum project cost is ₹25 lakh (manufacturing) and ₹10 lakh (services).

Benefits

• Subsidy up to 35% of project cost (rural/general)
• Subsidy up to 25% of project cost (urban/general)
• Higher subsidy for special categories (SC/ST/OBC/Women/Minority/Ex-servicemen)
• Bank loan for remaining project cost

Eligibility Criteria

• 1Age 18+ years (general), no upper limit for special category
• 2VIII standard pass for projects above ₹10 lakh (manufacturing) / ₹5 lakh (services)
• 3No default with any bank
• 4New project only (not existing unit)
• 5Only one family member eligible

Documents Required

Frequently Asked Questions