Employment & Skill Development
PM Employment Generation Programme
Complete 2026 guide to PMEGP: Margin money subsidy 15-35% for micro enterprises creating 1 job per unit up to ₹50 lakh investment.
Last updated: 3/8/2026
Overview
Prime Minister's Employment Generation Programme provides margin money subsidy for setting up micro enterprises in rural/urban areas. By 2026, 10 lakh+ enterprises created with 80 lakh employment generating ₹50,000 crore investment.
Maximum project ₹25 lakh manufacturing/₹10 lakh service with subsidy 15-35% (rural max). Bank credit covers balance with KVIC nodal agency. EDP training mandatory. Women/SC/ST get higher subsidy. Second loan after 3 years profitable unit.
Who is Eligible?
- Individuals above 18 years
- SHGs/Trusts/Production Co-op
- Ex-service personnel priority
- No income ceiling
- First time entrepreneurs
Documents Required
- Aadhaar Card
- Project report
- Bank account details
- Caste certificate (for subsidy)
- Training certificate
How to Apply
- 1Step 1: Apply online at pmegp.gov.in
- 2Step 2: Prepare project report (standard format)
- 3Step 3: District level scrutiny committee
- 4Step 4: Margin money released post bank loan
- 5Step 6: EDP training 2 weeks
- 6Step 7: Unit commencement within 4 months