If you want to start your own business but lack of money is stopping you, then ‘Pradhan Mantri Employment Generation Program’ (PMEGP) can be a great opportunity for you. This scheme is run by the Central Government, whose objective is to create new employment opportunities in the country and make the youth self-reliant. Under this scheme, the government helps in getting bank loans and gives subsidy on them, which reduces the financial burden on those starting a business.
What is Prime Minister’s Employment Generation Programme?
PMEGP is a credit-linked subsidy scheme run by the Ministry of Micro, Small and Medium Enterprises (MSME). It provides financial assistance to start new micro-enterprises. This scheme has been specially designed for unemployed youth of rural and urban areas, so that they can start their own business.
How much subsidy is available?
The subsidy available under PMEGP depends on the category and location of the applicant:
General Category (Urban): 15% subsidy
General Category (Rural): 25% subsidy
Special Category (SC/ST/Women/Minorities):
Urban: 25%
Rural: 35%
Maximum cost of the project under this scheme:
Manufacturing Sector: Up to ₹25 lakh
Service Sector: Up to ₹10 lakh
Who can apply?
1. The age of the applicant must be at least 18 years.
2. Must have passed at least 8th class (for projects above ₹10 lakh).
3. It must be a new business (already running businesses are not eligible).
4. Individuals, Self Help Groups (SHGs), Trusts etc. can apply.
In which sectors business can be started? Many types of businesses can be started under this scheme:
Manufacturing units (e.g. furniture, machine parts)
food processing
Handicrafts and Cottage Industries
Service Sector (like salon, repair shop, retail shop)
The process to apply for PMEGP is completely online:
Go to the official website.
Fill the online application form.
Upload project report.
Submit the required documents.
The bank approves the loan after an interview/screening process.
Once the loan is approved, the bank directly releases the subsidy. Required Documents:
Aadhar card
educational certificate
project report
passport size photo
Category Certificate (if applicable)
It is worth noting that the PMEGP scheme has played an important role in increasing employment across the country. Through this scheme, lakhs of people have started their business and have also provided employment to others. The impact of this scheme can be clearly seen especially in rural areas, where people are becoming self-reliant by setting up small-scale industries.