What is PMEGP?

The Prime Minister’s Employment Generation Programme (PMEGP) is a special plan started by the Government of India in August 2008.
Its main goal is to help people start small businesses so that they can earn money and also give jobs to others.

PMEGP is run by the Ministry of Micro, Small and Medium Enterprises (MSME). It helps people in both villages and cities to begin their own work and become self-employed.


🏦 Who Runs PMEGP?

The program is managed by KVIC (Khadi and Village Industries Commission).
KVIC works with:

State Khadi Boards (KVIBs)

District Industries Centres (DICs)

Coir Board

Banks


These groups help people apply, get loans, and start their own business units.



🎯 Main Goals of PMEGP

1. To help people start new small businesses in villages and cities.


2. To give jobs to young people and artisans near their homes.


3. To stop people from moving away from villages just to find work.


4. To help families earn more money and make life better.



💰 How PMEGP Gives Money

PMEGP gives help in two main ways:

1. Margin Money Subsidy

This means the government pays part of the money needed to start your business.

You pay a small amount (5% or 10%).

The government pays a big part (15%–35%).

The rest comes as a loan from the bank.


Example:

If your project costs ₹10 lakh, you might only pay ₹50,000, and the government plus the bank will cover the rest.


2. Backward and Forward Linkages

This part helps you learn how to grow your business — through training, workshops, and exhibitions. It also supports your marketing and online selling efforts.

👩‍🏭 Who Can Get PMEGP Help?

You can apply if:

You are 18 years or older.

You want to start a new business.

You have studied at least up to Class 8 (for projects above ₹10 lakh in manufacturing or ₹5 lakh in services).

You have not taken government subsidy before.


Special groups like SC, ST, OBC, Women, Minorities, Ex-Servicemen, and differently abled persons get extra benefits.



💼 Types of Businesses You Can Start

You can start many types of small businesses, like:

Candle making

Tailoring

Furniture making

Handicraft work

Food processing

Repair shops

Online service centers


But some businesses are not allowed, like:

Making or selling alcohol, tobacco, or meat products.

Big farming or plantation work (like tea, coffee, or rubber).




🏆 Loan and Subsidy Details

Category Area Your Share Govt. Subsidy

General Urban 10% 15%
General Rural 10% 25%
Special (SC/ST/Women/Minorities etc.) Urban 5% 25%
Special (SC/ST/Women/Minorities etc.) Rural 5% 35%


Maximum Project Cost:

Manufacturing: ₹50 lakh

Service Sector: ₹20 lakh



🔁 Second Loan for Upgrading a Business

If you already have a PMEGP business and want to make it bigger or better, you can get a second loan (for up to ₹10 crore in manufacturing or ₹25 lakh in services).
You must:

Have a profit-making business.

Have repaid your first loan on time.



🧾 How to Apply for PMEGP Loan

🖥️ Online Application:

1. Go to the official website: https://www.kviconline.gov.in/pmegpeportal


2. Click on “Apply for New Unit” or “Apply for Existing Unit (2nd Loan)”


3. Fill out the form and upload your documents.


4. Submit and wait for approval.



📄 Offline Application:

You can also fill out the form from this link:
PMEGP Offline Application Form PDF
Submit it to your nearest KVIC, KVIB, or DIC office.


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📑 Documents You Need

Caste or community certificate (if applicable)

Rural area certificate (for rural projects)

Educational certificate

Project report

Training or EDP certificate (if any)

ID proof and address proof




🌱 Why PMEGP is Important

PMEGP helps thousands of people every year start their own small business.
It:

Reduces unemployment,

Encourages self-employment, and

Supports India’s dream of “Atmanirbhar Bharat” (Self-Reliant India).

🧩 Conclusion

The Prime Minister’s Employment Generation Programme (PMEGP) is a golden chance for people who want to start their own work. With just a small investment, you can begin your journey toward success — and even create jobs for others.

If you have a dream business idea, PMEGP can help you make it real! 🚀