PMEGP Scheme: Eligibility & How to Apply 2026
PM Employment Generation Programme (PMEGP) provides up to 35% capital subsidy for new micro enterprises. Funded by KVIC — open to all eligible entrepreneurs across India.
Key Benefits
₹25 Lakh
Maximum amount
25–35%
Subsidy on project cost
Capital subsidy on project cost. Subsidy rate is higher for rural areas (35%) and SC/ST/OBC/women beneficiaries.
Eligibility Criteria
- New manufacturing or service enterprise (business age must be 0 months — not an existing business)
- Project cost: up to ₹50 lakh for manufacturing, ₹20 lakh for service sector
- Udyam registration as a micro enterprise required
- Applicant must be at least 18 years old with minimum 8th-grade education for projects above ₹10 lakh
- No existing collateral-free loan for the same activity (MUDRA etc.) at time of application
- SC/ST, women, NER, physically disabled, ex-servicemen, minorities, and hill/border area entrepreneurs get 5% additional subsidy
Frequently Asked Questions
What is PMEGP subsidy rate?
PMEGP offers 15–35% capital subsidy depending on location and category. Urban general category: 15%. Rural general category: 25%. SC/ST/OBC/women/NER/minorities in urban areas: 25%. SC/ST/OBC/women/NER/minorities in rural areas: 35%.
Who applies for PMEGP — applicant or bank?
Applicants apply online at the KVIC portal (kviconline.gov.in/pmegpeportal). After submitting the application, a Project Interview Committee (PIC) selects candidates. Selected applicants then approach banks for the loan component.
Can I apply for PMEGP with an existing business?
No. PMEGP is for new units only (business age must be 0 months at application time). If you have an existing business, you may be eligible for other schemes like CGTMSE or Technology Upgradation Fund.
How long does PMEGP approval take?
Processing typically takes 3–6 months from application to disbursement. Delays often occur during bank due diligence and project appraisal stages. Applying through KVIBs or DICs may be faster than direct KVIC routes.
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