Prime Minister's Employment Generation Programme (PMEGP)
Ministry of MSME — Khadi and Village Industries Commission (KVIC)
Prime Minister's Employment Generation Programme (MSME/KVIC): credit-linked margin-money subsidy of 15–35% (higher for rural and special categories) on new micro-enterprise projects up to ₹50 lakh (manufacturing) / ₹20 lakh (services); second loan for upgrading units up to ₹1 crore / ₹25 lakh with 15–20% subsidy. Apply on the KVIC PMEGP e-portal.
What changed: New in this edition (not in the June 2026 playbook)
Sources (2)
PMEGP is the government's flagship credit-linked subsidy for first-generation entrepreneurs setting up new micro-enterprises, run by KVIC with state KVIBs and District Industries Centres.
Objectives
Generate self-employment by helping individuals set up new micro-enterprises in rural and urban areas through bank credit with a capital subsidy.
Who can apply?
- Individuals aged 18+; 8th-pass for larger projects (above ₹10 lakh manufacturing / ₹5 lakh services); new units only.
- SHGs, institutions, cooperatives and charitable trusts are also eligible; one beneficiary per family.
What do you get?
- Margin-money subsidy: 15% (urban) / 25% (rural) of project cost for general category; 25% / 35% for SC/ST/OBC/minorities/women/ex-servicemen/PwD/NER/hill/border areas.
- Project cost ceiling: ₹50 lakh (manufacturing), ₹20 lakh (services/trading).
- Second loan to upgrade successful units: up to ₹1 crore (manufacturing) / ₹25 lakh (services) with a 15–20% subsidy.
How to apply
Apply online on the KVIC PMEGP e-portal (https://www.kviconline.gov.in/pmegpeportal); the application is forwarded to a bank for appraisal. No application fee.