Objective: 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 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 Any individual, above 18 years of age can apply. There will be no income ceiling for assistance for setting up projects under PMEGP. For setting up of project costing above Rs.10 lakh in the Manufacturing sector and above Rs. 5 lakh in the Business /Service sector, the beneficiaries should possess at least VIII standard pass educational qualification. Assistance under the scheme is available only for new projects sanctioned specifically under the PMEGP. Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible. Scheme 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. 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 Model Projects Reports of different activities have been put up on PMEGP e-portal for the benefit of potential beneficiaries. How to apply: Apply online at https://www.kviconline.gov.in/pmegpeportal/pmegphome Related resources Scheme guidelines