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Prime Minister Employment Generation Programme (PMEGP)

Eligibility & Conditions

  • Target Beneficiary: Unemployed rural and urban youth;
  • Eligibility Criteria: Any individual above 18 years of age, SHGs, Charitable trusts, Registered Societies etc.
  • Budget for FY 20-21: Rs. 2500 Crores
  • Details of scheme: It is a Bank appraised and financed, subsidy program to set up micro-enterprises. Hence, a Project Report will be required;
  • Allowed Project Cost: for Manufacturing Unit: Rs. 25 lakh; Service Sector Unit: Rs. 10 lakh, Trading SectorUnit Rs. 10 lakh in North Eastern Region, LWE-affected districts and Andaman & Nicobar Islands
  • Subsidy: General Category: 15% of the project cost in urban areas, 25% in rural areas;
  • Subsidy for Special Category (SC/ST/OBC/ Minorities/Women/ NER/Hill Areas): 25% in urban, 35% in rural areas
  • Contribution of the Entrepreneur: General: 10%, Special category: 5%.

Assistance for upgradation and expansion of successful/well performing existing units

  • The maximum cost of the project under manufacturing sector for up-gradation is Rs.1.00 crore and Rs.25.00 lakh under Service/Trading sector;
  • Maximum subsidy would be 15% of the project cost (20% for NER and Hill States). The balance amount of the total project cost is provided by Banks as term loan.

Steps to Take

  • It is a fully on line scheme The applicant can apply on line only;
  • The applicant should apply in the following Website- KVIC Online
  • The applicant to follow the guidelines of this portal.
  • In case of help required, the applicant may contact nearest office of Khadi and Village Industries Commission (KVIC), District Industries Center (DIC), State Khadi and Village Industries Board (KVIB) or Coir Board;
  • The applicant has the option to choose Implementing Agency from KVIC/KVIB/DIC/Coir Board. These agencies will support in checking the documents and help in project DPR preparation;
  • Implementing Agencies may suggest some corrections before forwarding the proposal to the Bank;
  • Since it is a bank financed scheme, based on the strength of the project, Bank decides about the loan and the loan amount to the applicant. Hence, the applicant should prepare a good and sustainable business plan;
  • On sanction of loan, Bank will inform the applicant and also to the concerned Implementing Agency;
  • Implementing Agency will arrange for the Entrepreneurship Development Programme (EDP) Training for the applicant, which is available on line as well;
  • On EDP completion, a certificate is issued to the applicant and same is to be submitted along with applicant contribution to the concerned Bank to get first instalment of the loan.


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