PMEGP Application Process

Prime Minister’s Employment Generation Programme (PMEGP) is a scheme which officially related subsidy program provided by the Ministry of Micro, Medium and small enterprises, Government of India.  This scheme is launched on 15th August 2008 as a power to the first generation entrepreneurs to create microenterprises.

This scheme is executed by Khadi and Village Industries Commission (KVIC) which is the nodal agency at the national level. The scheme is kept into practice by KVIC, KVIB and District Industries center at the state level and in rural areas, the scheme is implemented by KVIC and state / UT Khadi and VI Board in the ratio of 30:30:40.

The objective of the Prime Minister’s Employment Generation Programme (PMEGP):

  • To create employment opportunities in rural and urban areas by means of setting up of self-employment ventures.
  • The scheme is suitable to all realistic (technically as well as cost-effectively) projects in rural and urban areas, under the Micro enterprise’s sector.
  • To provide constant and sustainable employment to a vast segment of traditional and potential artisans and unemployed youth, so as to aid the captured movement of rural youth to urban areas.
  • Support on the Scheme is obtainable only for new projects.
  • The maximum cost of the project allowed under the manufacturing sector is Rs.25 lakhs and the business or services sector is Rs.10 lakhs.
  • Only one person from the family is qualified for obtaining financial assistance under the terms of the scheme.
  • The support in the scheme will not be accessible to activities as specified in the negative list under the terms of the scheme.


  • Individuals above 18 years of age
  • Institutions registered under Societies Registration Act- 1860
  • Production-based Co-operative Societies
  • Applicant should pass 7th stranded for the project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs for Service Sector
  • Self Help Groups and Charitable Trusts


On the PMEGP scheme, the loan sanctions can be done up to Rs. 25 lakhs for the manufacturing sector and Rs. 10 lakhs for the service sector at bank base rate + 1% interest. The loan can be repayable usually in 3 to 7 years with an early suspension period of 6 months.

No need for collateral security for the PMEGP loan, moreover the personal guarantee of the promoter should be provided along with charge over the assets created out of bank finance. Adequate units also are included on the Credit Guarantee Fund scheme (CGTMSE) for micro and small enterprises

PMEGP Application Process – online:

  • Go to the official website of KVIC
  • Application Form will appear on the screen
  • Enter all details carefully and accurately like Aadhar number, sponsoring agency, sponsoring office, address, name, DOB, age, qualification and all
  • Enter details of your project like Industry type, loan type, and all
  • After filling all details click on save and submit, the process will be completed once save and submit the form online
  • Now, you will get application details like ID and Password on your mobile number
  • That’s it, go to the Home page and log in with your user id and password

This all about Prime Minister’s Employment Generation Programme (PMEGP) hope it helpful to you. Please share your suggestions with us