Scheme

Government of India introduced the Prime Minister’s Employment Generation Programme (PMEGP) by merging PMRY and REGP schemes. PMEGP is a credit-linked subsidy programme administered by the Ministry of MSME through KVIC. Under the scheme, beneficiaries contribute 10% of project cost while weaker sections contribute only 5%. Remaining amount is financed by banks. Subsidy benefits are credited after completion of the lock-in period.

Objective

• Generate employment opportunities in rural and urban areas.
• Support unemployed youth and traditional artisans.
• Reduce migration from rural areas to urban areas.

Scope

• Applicable to viable micro enterprise projects.
• Manufacturing sector project limit: Rs.25 Lakhs.
• Business / Service sector project limit: Rs.10 Lakhs.
• Only one family member eligible for assistance.

Eligible Enterprises / Borrowers

• Any individual above 18 years of age.
• Self Help Groups and Charitable Trusts are eligible.
• Existing subsidy beneficiaries are not eligible.

Subsidy Structure

Other Details

• Repayment period: 3 to 7 years.
• No collateral security up to Rs.5 Lakhs.
• EDP / Skill Development training mandatory.
• Visit www.kvic.org.in for more details.

PMEGP Scheme Achievement

Amount in Thousands