Prime Minister Employment Generation Program (PMEGP) is a composition of two schemes- Prime Minister’s Rojgar Yojana and Rural Employment Generation Program. It is a credit-linked subsidy program that aims at generating employment opportunities through the establishment of micro-enterprises in rural as well as urban areas. The objective is to provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country. The scheme facilitates the participation of financial institutions for higher credit flow to micro sectors.

Eligible Entrepreneurs/Borrowers

  • Any individual, above 18 years of age.
  • The beneficiaries should have passed at least VIII standard, for setting up of project costing above Rs.10 lakhs in the manufacturing sector and above Rs. 5 lakhs in the business/service sector.
  • Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme).
  • Institutions registered under Societies Registration Act,1860.
  • Production Co-operative Societies.
  • Charitable Trusts.


  • The maximum cost of the project/unit admissible under the manufacturing sector is Rs. 25 lakh and under the business/service sector is Rs.10 lakh. Per capita investment should not exceed Rs. 1 lakh in plain areas and Rs. 1.50 lakhs in hilly areas. Own contribution of 5% to 10% of project cost needs to be made.
  • General category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as scheduled caste/scheduled tribe/women, the margin money subsidy is 35% in rural areas and 25% in urban areas.
  • For more details on the scheme, you can visit the official website.

You can apply online for the scheme on the official website.

How to apply?

The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of the respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desirous of establishing the enterprise/starting of service units under PMEGP.

The beneficiaries can also submit their application online at and take the printout of the application and submit the same to respective offices along with the detailed project report and other required documents.