Can I get PMEGP for an existing business?

No. PMEGP only supports the setting up of new micro-enterprises.

How much subsidy do I actually get?

Between 15% and 35% depending on whether you're in a general or special category and whether the project is rural or urban.

Prime Minister's Employment Generation Programme (PMEGP) — Eligibility, Process & Documents

Need help applying?

Info Tree handles this scheme end-to-end — eligibility, paperwork, filing, and follow-up until the money reaches your account.

Talk to a consultant →

Overview

PMEGP merges two earlier schemes (PMRY and REGP) into a single credit-linked subsidy programme for first-generation entrepreneurs. A bank loan is taken, the promoter contributes a small margin, and the government provides a subsidy ranging from 15% to 35% depending on the category and location.

Key features

Maximum project cost: ₹50 lakh (manufacturing), ₹20 lakh (service)
Subsidy: 15–35% depending on category, area (rural/urban) and special category status
Promoter contribution: 5% (special category) or 10% (general)
CGTMSE coverage available for collateral-free loans
Implemented by KVIC, KVIB and District Industries Centres (DIC)

Eligibility

Indian citizen above 18 years
At least 8th standard pass for projects above ₹10 lakh (manufacturing) / ₹5 lakh (service)
Only new units — existing units are not eligible
SHGs, trusts, co-operatives and production co-operative societies eligible
Beneficiary cannot have availed any other subsidy under any PMEGP-like scheme

Benefits

Direct government subsidy of 15–35% of project cost
Collateral-free loans up to ₹10 lakh via CGTMSE
First-generation entrepreneur support
Standardised project sanctioning through PSU banks

Required documents

✓PMEGP online application
✓Detailed project report (DPR)
✓Educational qualification certificate
✓Caste certificate (if applicable)
✓Aadhaar, PAN, and residence proof
✓Bank account details and quotations for machinery

Application process

1
Online registration
Register on kviconline.gov.in/pmegpeportal.
2
DPR preparation
Detailed project report covering capex, working capital, financials and repayment.
3
DIC / KVIC screening
Applications scored by district task force committee.
4
Bank appraisal
Shortlisted files sent to a bank for credit appraisal.
5
Sanction and disbursement
Bank sanctions the loan; subsidy claimed and kept in a lock-in account for three years.

Common pitfalls

!Applying for an existing business — PMEGP is only for new units
!Weak DPR that banks reject
!Missing education certificate for larger projects
!Claiming under the wrong category (general vs special)

FAQs

₹50 lakh for manufacturing projects and ₹20 lakh for service or trading projects.

Ready to apply for PMEGP?

We prepare every document, file every form, and stay with you through sanction and disbursement.

Start your application

Prime Minister's Employment Generation Programme (PMEGP)