PMEGP Scheme

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PMEGP Scheme
PMEGP Scheme

Objective: PMEGP Scheme

The scheme 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 for rural and unemployed youth as well as prospective traditional artisans and thereby halt occupational migration.

Key Benefits: PMEGP Scheme

  • Credit linked subsidy program for setting up new micro-enterprise in non-farm sector.
  • Margin Money subsidy ranges from 15% to 35% of project cost for projects up to Rs. 50 Lakh in Manufacturing sector and Rs. 20 Lakh in the Service sector.
  • For beneficiaries belonging to Special categories such as SC/ST/ Women/ Minorities/ Ex-Servicemen/ Transgenders/ Aspirational districts/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas.

Scheme applicable for: PMEGP Scheme

Any individual, above 18 years of age can apply.

Detailed Information:

  • The own contribution of the beneficiary is 10% of the project cost in case of General category and 5% of the project cost in case of Special category (SC/ST/OBC/PH/Women/Ex Servicemen/Transgenders/Aspirational Districts/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
  • beneficiaries.
  • 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 workshops, EDP training to the beneficiaries,
    exhibitions, etc.
  • Government of India has introduced online process for flow
    of applications and disbursement of Margin Money directly
    to financing branches.
  • Online application form is mandatory for individuals on the
    e-portal. The application form/PMEGP MIS portal is mobile
    friendly. SMS/e-mail alerts are sent to the applicants
    automatically by the system or by the concerned officials
    at each stage.
  • Model Projects Reports of different activities have been put up
    on PMEGP e-portal for the benefit of potential beneficiaries.
  • To increase the registration of MSMEs in the country, the Government has undertaken measures for PMEGP units to adopt the Udyog Aadhar Memorandum (UAM)/UDYAM Registration

How to apply: PMEGP Scheme

Apply on: the following website



For more information, read the following posts:

Canara Bank MSME Loan

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