About this programme
PMEGP is implemented by KVIC and Ministry of MSME to generate employment by assisting micro-enterprise setup in non-farm sectors. It combines bank loans with government margin money subsidy (15-35% based on location and category) to enable unemployed individuals to establish their own ventures. Since inception, 10.18+ lakh micro enterprises have been set up, generating 90+ lakh direct and indirect jobs. It is run by KVIC / Ministry of MSME.
A subsidy reduces a specific cost — typically reimbursed or adjusted after you incur and document the expense, rather than paid upfront. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in manufacturing and services/business - non-farm, excluding prohibited trades. Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
How it works
Beneficiary prepares Detailed Project Report and submits online at kviconline.gov.in. KVIC/Implementing Agency scores and recommends to bank. Bank sanctions loan; margin money subsidy is deposited into beneficiary's account post-loan disbursement. Mandatory Entrepreneurship Development Programme (EDP) training required before/during disbursement.
Who can apply
Individual applicant 18+ years old; only one person per family eligible (family = self, spouse, unmarried children). Minimum VIII standard education required for manufacturing projects >Rs 10 lakh or service/business >Rs 5 lakh. No upper income ceiling. Udyam registration mandatory before bank verification.
How to apply
- Register on PMEGP online portal at kviconline.gov.in/pmegp or pmegp.msme.gov.in
- Prepare Detailed Project Report with cost estimates, market analysis, and operational plan
- Submit application online with DPR and required documents
- Undergo assessment by KVIC/Implementing Agency and bank verification
- Upon loan sanction by bank, receive margin money subsidy credit; complete mandatory EDP training
Documents you’ll typically need
- Detailed Project Report (DPR)
- Identity proof (Aadhaar/PAN/Voter ID/Passport)
- Address proof (electricity bill/telephone bill)
- Educational qualification proof (VIII standard certificate for larger projects)
- Bank account details
- Udyam Registration certificate
The exact checklist depends on the programme and your specifics.
Frequently asked
What is the maximum project cost under PMEGP?
Manufacturing projects up to Rs 50 lakh; Service/Business projects up to Rs 20 lakh.
Can I apply for a second loan under PMEGP?
Yes, eligible beneficiaries who have successfully repaid their first loan can apply for a second loan with 15-20% margin money subsidy.
Is the Entrepreneurship Development Programme (EDP) mandatory?
Yes, EDP training is mandatory and has been made available online since October 2019. Training must be completed before or during loan disbursement.
Can more than one family member apply?
No, only one person per family is eligible. Family includes self, spouse, and unmarried children.
Reviewed July 2026. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.