PMEGP is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector. The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks.

For setting up of new micro enterprise (units)

The maximum cost of the project/unit admissible in manufacturing sector is ₹ 50 lakh and in the business/service sector, it is ₹ 20 lakh.

Categories of beneficiaries under PMEGP (for setting up of new enterprises)   

Beneficiary’s contribution (of project cost)    Rate of Subsidy (of project cost)

Area (location of project/unit)                      

General Category       10%    

Urban   Rural  15%   25%

Special Category (including SC,ST,OBC ,Minorities, Women, Ex-Servicemen, Transgenders, Differently abled, NER, Aspirational Districts, Hill and Border areas(as notified by the Government) etc.   05%    

Urban   Rural              25%   35%

2nd Loan for upgradation of existing PMEGP/MUDRA units

The maximum cost of the project/unit admissible for Margin Money subsidy under Manufacturing sector for upgradation is Rs. 1.00 crore.The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector for upgradation is Rs. 25 lakh.

Categories of beneficiaries under PMEGP (for upgradation of existing units)        

Beneficiary’s contribution (of project cost)    All Categories 10%

Rate of Subsidy (of project cost)         All Categories      15% (20% in NER and Hill States)

Who can apply?  

Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector. Existing units (under PMRY or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible. Existing units (PMEGP/REGP/MUDRA) are eligible for 2nd Loan.

How to apply?     

The beneficiaries can apply for loan under the Scheme only through PMEGP e-portal (http://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp).

For further detail about the scheme, beneficiaries may contact the nearest KVIC/KVIB/DIC offices and the website

https://www.kviconline.gov.in the beneficiaries may apply through offline mode by submitting physical applications to implementing agencies. Physical applications are available in 11 regional languages viz.

Assamese, Malayalam, Odia, Punjabi, Tamil, Gujarati, Marathi, Bengali, Telugu and Kannada. Beneficiaries can download the physical forms from the website: https://www.kviconline.gov.in/pmegpeportal/jsp/offlineform.jsp