Download Free PMEGP Scheme in PDf 2025

The PMEGP Scheme (Prime Minister’s Employment Generation Programme) is a flagship initiative of the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. Launched to promote self-employment and entrepreneurship, the scheme provides financial assistance to individuals and groups who wish to establish new micro-enterprises in rural and urban areas. By combining subsidy support with institutional credit, the PMEGP Scheme plays a crucial role in reducing unemployment and encouraging sustainable business growth across India.

Key Features of the PMEGP Scheme

Particulars	Details
Implementing Ministry	Ministry of MSME, Govt. of India
Nodal Agency	Khadi and Village Industries Commission (KVIC)
Beneficiaries	Entrepreneurs, self-help groups, cooperatives, institutions
Assistance Type	Subsidy + Bank Loan (Credit Linked)
Coverage	Rural & Urban areas

Objectives of the PMEGP Scheme

The primary objective of the PMEGP Scheme is to generate employment opportunities by supporting new micro-enterprises. It aims to:

• Promote entrepreneurship among youth, women, SC/ST, OBC, and minority communities.
• Provide subsidised loans to set up manufacturing and service units.
• Strengthen the rural economy by creating self-sustaining income sources.
• Reduce migration from villages to cities by creating jobs locally.

Financial Assistance under PMEGP Scheme

One of the biggest advantages of the PMEGP Scheme is the financial support extended to eligible applicants. The assistance is provided in the form of:

• Subsidy: Ranges from 15% to 35% depending on the applicant’s category and location (urban or rural).
• Bank Loan: After margin money and subsidy, the remaining project cost is financed through institutional credit.
• Applicant Contribution: Usually ranges from 5% to 10% of the total project cost.

This unique credit-linked subsidy model ensures that entrepreneurs not only receive government support but also build financial discipline through repayment.

Eligibility for PMEGP Scheme

To apply under the PMEGP Scheme, the applicant must meet the following criteria:

• Minimum age of 18 years.
• Educational qualification of at least Class VIII for projects above ₹10 lakh in manufacturing and above ₹5 lakh in service sectors.
• Only new projects are eligible for assistance. Existing units are not covered.
• Self-help groups, charitable trusts, and cooperative societies can also apply.

How to Apply for PMEGP Scheme

Applicants can easily apply online through the official PMEGP e-portal by submitting:

1. Online application form.
2. Aadhaar and identity proof.
3. Project report with cost estimation.
4. Caste/Category certificate (if applicable).
5. Educational qualification documents.

Once approved, the application is forwarded to the respective bank for loan sanction and subsidy processing.

Conclusion

The PMEGP Scheme has become one of India’s most effective employment generation programmes, supporting lakhs of entrepreneurs in setting up sustainable businesses. With its blend of subsidy and credit support, it empowers individuals to turn their ideas into reality while contributing to the growth of the rural and urban economy. For aspiring entrepreneurs, applying under the PMEGP Scheme in 2025 is an excellent opportunity to build a strong business foundation with government-backed financial support.

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