Prime Minister’s Employment Generation Programme  aims to provide financial assistance to set up self-employment ventures and generate sustainable employment opportunities in rural as well as urban areas.  To generate sustainable and continuous employment opportunities to rural and unemployed youth as well as prospective traditional artisans and thereby halt occupational migration. 


Key Benefits:


  • Bank-financed subsidy program for setting up new microenterprises in non-farm sector.
  • Margin Money subsidy on Bank Loan ranges from 15% to 35% for projects up to Rs. 25 Lakh in manufacturing and Rs. 10 Lakh in the service sector


  • For beneficiaries belonging to special categories such as SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs. 25 lakh in the manufacturing sector and Rs.10.00 lakh in the service sector.


Scheme applicable for:


  • Any individual, above 18 years of age can apply
  • Self Help Groups, Institutions registered under Societies,

Production Co-operative Societies and Charitable Trusts.Detailed Information:

  • The own contribution of the beneficiary is 10% of the project  MSME SCHEMES 5 cost in case of general category and 5% of the project cost in case of reserved category (SC/ST/OBC/PH/Women/Ex Servicemen/ NER) beneficiaries.


  • If the application for loan is approved, Banks sanction and release the balance amount of 90 to 95 percent of the total project cost suitably for setting up of the units by the


  • In order to have sustainability of the projects/units set up under the scheme, support services are also provided in the form of Backward & Forward Linkages by organizing events like awareness camps, workshops, EDP training to the beneficiaries, exhibitions, etc.


  • Government of India has introduced online process flow of application and disbursement of 

Margin Money directly to financing branches


  • One-page online application form is mandatory for individuals and institutional beneficiaries on the e-portal. The application form/PMEGP MIS portal is mobile friendly. SMS/e-mail alerts sent to the applicant automatically by the system or by the concerned officials at the process of each stage.


  • Model Projects of different KVI activities have been put up on PMEGP e-portal for the benefit of potential beneficiaries.
  • Model Village Industries projects prepared by NSIC have also been linked to the website.


  • To increase the registration of MSMEs in the country, the Government has undertaken measures that the PMEGP units can adopt the Udyog Aadhar Memorandum (UAM) to register online.


How to apply:



This article has been taken from

and Curated by ecommerce consultant and trainer 


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