Prime Minister’s Employment Generation Programme (PMEGP)
CURRENT APPLICATION STATUS:
🟢 Active Information Guide
Active Scheme Information Guide
Department: Ministry of Micro, Small and Medium Enterprises (MSME), Government of India
Last Verified: 27 August 2026
Official Source: https://pmegp.msme.gov.in ↗
he Prime Minister’s Employment Generation Programme (PMEGP) mainly benefits people who want to start a new micro-enterprise.
💰 Credit-linked subsidy: Eligible applicants can receive government margin-money subsidy toward the project cost.
🏭 Helps start a new business: Supports new micro-enterprises in the manufacturing and service/business sectors.
👨💼 Self-employment: Helps individuals create their own employment and potentially generate jobs for others.
🏦 Bank-financed project: The subsidy is linked with a bank-financed project rather than being a simple cash payment.
🌾 Higher subsidy in rural areas: The subsidy rate is generally higher for rural projects than urban projects.
👥 Special-category benefit: Women, SC/ST, OBC, minorities, ex-servicemen, differently abled persons and other eligible special categories can receive higher subsidy rates under the guidelines.
📈 Supports relatively larger projects: The current PMEGP guidelines provide subsidy support for eligible project costs up to ₹50 lakh for manufacturing and ₹20 lakh for business/service activities.
Important: PMEGP is not a guaranteed free loan or cash grant. The applicant must meet the eligibility requirements, the project must be approved, and bank financing is involved.
Eligibility Criteria & Conditions
*Applicant must generally be above 18 years.
*There is no income ceiling for assistance for setting up projects.
*For projects above ₹10 lakh in manufacturing or ₹5 lakh in business/service, the applicant should have at least Class VIII pass qualification.
*Assistance is for new eligible projects; existing units that have already received certain government assistance are generally not eligible.
*Only one person per family can receive assistance for a new enterprise under PMEGP
Required Documents & Verification
Aadhaar number — mandatory for the standard application process
Passport-size photograph
Caste Certificate, where applicable
Special Category Certificate, where applicable
Rural Area Certificate, where applicable
Project Report
Educational / EDP / Skill Development Training Certificate, where applicable
Other applicable documents depending on the applicant/project
Frequently Asked Questions (FAQs)
What is the current status of Prime Minister’s Employment Generation Programme?
Active Scheme Information Guide
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