PM Employment Generation Programme (PMEGP)

PM Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme for establishing new micro-enterprises in non-farm sectors. It is one of the government's primary tools for self-employment creation, providing subsidies ranging from 15% to 35% of project cost — with higher subsidies for rural areas and SC/ST/women/PwBD beneficiaries.

The maximum project cost is ₹50 lakh for manufacturing units and ₹20 lakh for service/trade units. The beneficiary contributes 5–10% of project cost, the subsidy covers 15–35%, and the balance is a bank loan. The subsidy is credited to the beneficiary's loan account upfront, reducing the effective loan burden significantly. Sectors covered include food processing, textile, leather, agro-based industries, rural crafts, and service businesses.

Applications must be submitted online through the KVIC (Khadi and Village Industries Commission) portal at kviconline.gov.in/pmegp. The applicant needs to be a minimum age of 18 years with at least Class 8 education for projects above ₹10 lakh. Before applying, attend the Entrepreneurship Development Programme (EDP) training — it is mandatory and typically lasts 2 weeks. Our editorial team verified subsidy rates and application process against KVIC official guidelines, July 2026.