The Government of India continuously runs many schemes to reduce unemployment and make the youth self-reliant. One of these schemes is the Pradhan Mantri Employment Generation Program (PMEGP Scheme). It was started in 2008. This scheme is implemented by the Khadi and Village Industries Commission (KVIC).
Under the scheme, any person can get a loan from the bank to start their manufacturing or service sector business, for which the government gives a subsidy of 25% to 35%. This scheme helps unemployed youth to start a business and also motivates them towards self-employment.
In this article, we will tell you in detail about the Pradhan Mantri Employment Generation Programme Scheme – like objective, eligibility, documents, application process, benefits or subsidy, loan and all other important information.
Overview Of PMEGP Scheme Details
| Name of the Scheme | PMEGP Scheme |
| Department | Ministry of Micro, Small and Medium Enterprises (MSME) |
| Year of Implementation | In 2008 |
| Beneficiaries | Unemployed Youth, Entrepreneurs |
| Amount of Assistance | Maximum ₹25 Lakh (For Manufacturing Unit) and ₹10 Lakh (For Service Unit) |
| Subsidy | 15% to 35% |
| Application Process | Online |
| Official Website | https://www.kviconline.gov.in/pmegpeportal |
Objective of the PMEGP Scheme List
The main objective of the Pradhan Mantri Employment Generation Programme Scheme is to provide employment opportunities to the rural and urban youth of the country. Under this, the government provides financial assistance and subsidies to entrepreneurs to start a new business or expand an existing business. Apart from this, the government aims to stop migration from rural areas and promote small industries at the local level.
Along with this, the government is also running schemes like the PM Internship scheme to provide training and opportunities to the youth. So that the youth can perform better in employment and business by developing skills.
PMEGP Scheme Eligibility
Certain eligibility conditions have been established to qualify for the PMEGP Scheme List PDF.
Eligibility for individual applicants:
- The applicant must be an Indian citizen.
- The minimum age should be 18 years.
- It is necessary to have passed at least the 8th grade.
- The applicant should be unemployed and should not have any permanent business already.
Eligibility for institutions:
- Self Help Groups (SHG): If they are not already taking benefits under any other government scheme.
- Cooperative institutions, which are related to production and have good records.
- Trusts: Registered trusts can also apply.
- NGO / Societies, which are recognised for industry-based work.
Project Eligibility:
- Only new projects/businesses will get assistance.
- Previously, businesses that have run or those that have already received a subsidy from any government scheme will not be eligible.
- A project up to a maximum of ₹25 lakh for the manufacturing unit and a maximum of ₹10 lakh for the service/business unit will be valid.
Required Documents For This Scheme
To apply for the Pradhan Mantri Employment Generation Program, the applicant has to submit some important documents. These documents verify the applicant’s identity, qualifications, and business plan.
- Aadhar Card
- PAN Card
- Voter ID Card
- Birth Certificate
- Educational Qualification Certificate
- Caste Certificate
- Passport Size Photo
- Account Statement
- NGO Registration Certificate For Institutions
- By-laws or Constitution of the Institution
- List of Board of Directors/Management
- Business/Project Related Documents
- Land/Location Document For Project Report
- Approval Letter from Bank
- Other Licenses/Registrations
Assistance And Subsidy Rates Under The Scheme
Under the Pradhan Mantri Employment Generation Program (PMEGP Scheme), the government provides a subsidy along with a bank loan to start new businesses.
Manufacturing Unit
Maximum project cost: ₹25 lakh
Out of this, the beneficiary has to contribute only 5-10%.
The remaining amount is available in the form of a bank loan and subsidy.
Service / Business Unit
Maximum project cost: ₹10 lakh
In this, the beneficiary has to contribute 5-10%.
See the table below:
| Type of Unit | Maximum Project Cost | Beneficiary Contribution | Bank Loan | Government Subsidy |
| Manufacturing Unit | Up to ₹25 Lakh | 5% – 10% | Balance | 15% – 35% |
| Service/Business Unit | Up to ₹10 Lakh | 5% – 10% | Balance | 15% – 35% |
Benefits Of Pradhanmantri Employment Generation Programme
PMEGP Scheme Details & Benefits:
- Unemployed youth are given bank loans and government subsidies to start a new business or set up an enterprise.
- The general category has to contribute only 10% and SC/ST/women/disabled/ex-servicemen have to contribute only 5%.
- The government provides subsidies ranging from 25% to 35% in rural areas and 15% to 25% in urban areas.
- Every new industry or business employs many people directly and indirectly.
- Women, SC/ST category, disabled and ex-servicemen are given special benefits and more subsidies.
- Small industries, handicrafts, and cottage industries are promoted in rural areas, which reduces migration.
- This scheme motivates the youth to become self-reliant by setting up their own industry instead of looking for a job.
- Increasing production at the local level strengthens the “Make in India” and “Atmanirbhar Bharat” campaign.
Also Read This – Mukhyamantri Mahila Rojgar Yojana
PMEGP Loan Apply Online
- First of all, open the PMEGP Scheme Portal.
- On the homepage, under “PMEGP ePortal”, select the option ‘Online Application Form for Individual’ or ‘For Non-Individual’.
- Fill in the details like name, address, mobile number, email ID, educational qualification, occupation details, etc.
- Upload scanned Aadhar card, PAN card, educational certificate, bank passbook, project report and photo.
- After filling in all the information and uploading the documents, click on the “Submit” button.
- If the application is successful than you will get a registration number. Keep its printout safe.
- You can check the status of the application (Approved/Under Process/Rejected) from the “Track Application Status” option on the portal.
Selection Process Of PMEGP Scheme Details
- The initial scrutiny of the application and documents submitted on the online portal is done by the concerned District Industries Centre (DIC), KVIC or KVIB.
- The project report submitted by the applicant is evaluated, which looks at the business potential, cost and employment generation capacity.
- The applicant is called for an interview or presentation before the District Level Task Force Committee (DLTFC).
- The committee prepares a list of suitable applicants and recommends them for a bank loan and a subsidy.
- The recommended applications are sent to the concerned bank. The bank approves the loan on the basis of the financial status and the project.
- The selected applicant is given an Entrepreneurship Development Program for a few days so that he can run the business in a better way.
- After completion of the training, the loan is released by the bank, and the subsidy amount is provided by the government.
FAQ For Pradhan Mantri Employment Generation Programme
Pradhan Mantri Employment Generation Programme Loan Scheme is a government scheme under which unemployed youth are given the facility of a bank loan and a government subsidy to start a new business.
Manufacturing, service, cottage industry, handicraft, agriculture-based industry and other small- to medium-sized businesses are included under this Scheme, but banned and illegal activities are not valid.
The PMEGP Loan Scheme was launched in 2008 and has been continuously in force. The application process opens every financial year, in which youth can apply online.
The PradhanMantri Employment Generation Programme Scheme is operated by the Ministry of Micro, Small and Medium Enterprises (MSME Ministry), while the responsibility of implementation is entrusted to institutions like KVIC, KVIB and DIC.