PMEGP ONLINE

Prime Minister's Employment Generation Programme (PMEGP) is a flagship credit-linked subsidy scheme launched by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, and implemented through KVIC, State KVIBs, and District Industries Centres (DICs). The scheme aims to promote self-employment by helping first-generation entrepreneurs establish new manufacturing and service enterprises across urban and rural areas.

Under PMEGP, eligible applicants can obtain financial assistance from scheduled banks along with a Government margin money subsidy. This subsidy is adjusted against the loan after the prescribed lock-in period, reducing the borrower's repayment burden and making it easier to establish and expand a sustainable business.

PraFintech assists applicants throughout the entire process—from project planning and document preparation to online application submission, bank coordination, subsidy processing, and post-sanction support—making the application process simple, transparent, and hassle-free.

Scheme Highlights

Project Cost: Up to ₹50 Lakhs for Manufacturing and ₹20 Lakhs for Service sector.
Government Subsidy: Margin Money Subsidy ranging from 15% to 35% depending upon category and location.
Own Contribution: Only 5% for Special Category and 10% for General Category applicants.
New Enterprises: Available exclusively for establishing new business units.
Eligible Activities: Manufacturing and Service sector businesses approved under PMEGP guidelines.
Bank Finance: Loans are provided through participating scheduled commercial banks, RRBs and cooperative banks.
Collateral Benefit: No collateral security is generally required for eligible loans covered under CGTMSE guidelines.
Nationwide Scheme: Available throughout India for eligible entrepreneurs.

PMEGP Subsidy Structure

The subsidy amount under PMEGP depends upon the applicant's social category and the location where the proposed enterprise will be established.

Applicant Category	Own Contribution	Urban Subsidy	Rural Subsidy
General Category	10%	15%	25%
Special Category*	5%	25%	35%

*Special Category: Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC), Minorities, Women, Ex-Servicemen, Persons with Disabilities (PwD), Transgender applicants, and beneficiaries from notified special categories as per Government guidelines.

Required Documents

Aadhaar Card
PAN Card
Recent Passport Size Photograph
Educational Qualification Certificate (where applicable)
Caste Certificate (SC/ST/OBC or other eligible category)
Rural Area Certificate (for Rural subsidy applicants)
Detailed Project Report (DPR) / Business Project Report
Bank Passbook or Cancelled Cheque
Residential Address Proof
Proposed Business Address Details

Note: Additional documents may be requested depending on the nature of the project, project cost, financing bank, applicant category, and the latest PMEGP operational guidelines. Applicants proposing higher-value projects may also be required to submit educational qualifications, machinery quotations, project cost estimates, and other supporting documents during appraisal.

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Scheme Highlights

PMEGP Subsidy Structure

Required Documents

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