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UdyogSetu उद्योग सेतु • 2026
🇮🇳 Central Government Scheme Loan with Subsidy 2026 Active Scheme

Prime Minister's Employment Generation Programme (PMEGP)

प्रधानमंत्री रोजगार सृजन कार्यक्रम (PMEGP)

Ministry / Dept: Ministry of Micro, Small and Medium Enterprises (MoMSME) • Agency: KVIC / KVIB / DIC / State KVIC Directorates

Max Funding Limit Up to ₹50 Lakhs (Manufacturing) / ₹20 Lakhs (Services)
Government Subsidy 15% to 35% Margin Money Subsidy (Higher for Rural & Special categories)
Security / Collateral No collateral security required up to ₹10 Lakhs (CGTMSE covered up to ₹50 Lakhs)
Promoter Margin 5.0% Project Cost

📋 Scheme Objective & Overview

Flagship credit-linked subsidy scheme by Central Govt to generate self-employment in rural and urban areas by setting up new micro-enterprises.

Eligible Sectors: ManufacturingServicesFood ProcessingHandicraftsAgro-allied

💰 Key Financial Benefits & Subsidy Details

  • ✓Subsidy of 15% (Urban General), 25% (Rural General), 25% (Urban Special/Women/SC/ST), 35% (Rural Special/Women/SC/ST).
  • ✓Own contribution is only 5% to 10% of total project cost.
  • ✓Bank finances the balance 90% to 95% of project cost.
  • ✓Second financial assistance up to ₹1 Crore available for upgrading existing performing PMEGP units.

🎯 Who is Eligible? (Eligibility Criteria)

  • •Any individual above 18 years of age.
  • •No income ceiling for setting up projects.
  • •For projects above ₹10 Lakhs in manufacturing or ₹5 Lakhs in service, applicant must have passed 8th class.
  • •Only for new projects; existing units or units that availed other subsidies are not eligible.
  • •Self Help Groups (SHGs) and institutions registered under Societies Registration Act are also eligible.

Age Requirement: 18 to 65 years.

Education Qualification: 8th standard pass for projects costing > ₹10 Lakh in manufacturing and > ₹5 Lakh in services

📑 Mandatory Documents Required Checklist

Scanned PDF / Copies
📄Aadhaar Card and PAN Card
📄Detailed Project Report (DPR) with estimated costs and cash flows
📄Educational Qualification Certificate (8th / 10th / Diploma / Degree)
📄Caste / Category Certificate (if claiming special subsidy)
📄Rural Area Certificate (issued by Gram Panchayat / Tehsildar)
📄Passport size photos & Bank account passbook/cancelled cheque
📄EDP (Entrepreneurship Development Training) completion certificate (can be done online post-approval)

🚀 Step-by-Step Application Procedure

11. Visit the official KVIC e-portal (kviconline.gov.in/pmegpeportal).
22. Fill Online Application form with Aadhaar verification and applicant details.
33. Select agency (DIC / KVIC / KVIB) and financing bank branch.
44. Upload DPR, photos, educational certificates, and category proofs.
55. Track application status online; bank conducts appraisal and releases sanction.
66. Complete 10-day EDP training online or offline before loan disbursement.

❓ Frequently Asked Questions (Prime Minister's Employment Generation Programme (PMEGP))

What is the maximum loan limit under Prime Minister's Employment Generation Programme (PMEGP)?

Eligible applicants can avail up to Up to ₹50 Lakhs (Manufacturing) / ₹20 Lakhs (Services) in financial assistance from authorized partner banks.

How much capital subsidy is provided?

The scheme provides 15% to 35% Margin Money Subsidy (Higher for Rural & Special categories) credited directly to the loan bank account upon milestone verification.

Is collateral security or mortgage required?

No collateral security required up to ₹10 Lakhs (CGTMSE covered up to ₹50 Lakhs).

Ready to apply for Prime Minister's Employment Generation Programme (PMEGP)?

Submit your online application through the official government portal.

Apply on Official Portal →

Toll-Free Helpline: 1800-3000-0034 / 022-26711007

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