What is the Full Form of PMEGP – Objectives and Eligibility Criteria
PMEGP Full Form
PMEGP full form is the Prime Minister’s Employment Generation Programme, a government credit-linked subsidy programme to provide financial assistance to set up new enterprises and boost employment opportunities in rural and urban India. The Khadi and Village Industries Commission administers the programme on the national level.
The government subsidy on the project varies from 15% to 35% while the enterprise owners need to invest only 5% to 10% of the project value. The funding is offered by banks in the form of a term loan or a working capital loan. However, the project cost is capped at ₹50 lakh for manufacturing units and ₹20 lakh for business units.
Here are some of the key details of the PMEGP:
| Interest rate | Depends on the bank (typically up to 12% p.a.) |
| Minimum age of the applicant | 18 years |
| Minimum educational qualification of the applicant | VIII passed subject to terms and conditions |
| Government subsidy rate | 15% to 35% depending on rural or urban projects in general or special category |
| Maximum project cost | ₹50L for manufacturing units and ₹20L for service units |
| Entities | Entrepreneurs, MSMEs, Co-operative Societies, Charitable Trusts, Self Help Groups, etc. |
Objectives of PMEGP
- To provide financial assistance from government and banks to new micro-enterprises in both urban and rural areas of India
- To create sustainable employment opportunities, especially for youth and women, through the establishment of new ventures
- To promote self-employment among the unemployed youth of the country
- To limit forced migration to urban areas by enhancing employment opportunities in rural areas
- To encourage the setting up of micro-enterprises in traditional as well as modern industries
- To enhance the overall economic development of the country through the creation of new businesses and job opportunities
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PMEGP Eligibility Criteria
- The applicant must be at least 18 years old
- The minimum educational qualification to avail of PMEGP assistance is Class VIII passed, subject to further terms and conditions
- The PMEGP credit subsidy is only available for new projects
- Applicants must undertake a mandatory Entrepreneur Development Programme (EDP) training to be eligible for loan sanction
- The assistance is only available for business owners, entrepreneurs, MSMEs, SHGs, charitable trusts, societies registered under the Societies Registration Act of 1860 and production so-operative societies
Documents Required While Applying for PMEGP
- PMEGP application form with passport-sized photographs
- Identity & address proofs like PAN card, Aadhaar card & VIII Pass certificate
- Project report
- Special category certificate, if applicable
- Certificate of EDP
- Caste Certificate for SC/ST/OBC/Minority/Ex-Servicemen/PHC
- Certificate of academic and technical courses, if any
- Any other documents required by the lender
Final Word
The Prime Minister’s Employment Generation Programme or PMEGP has proven to be a successful initiative in promoting entrepreneurship and creating employment opportunities in India. The scheme has resulted in the creation of 4.43 lakh jobs until January in FY22-23 alone, and has been extended to FY25-26 with a total outlay of ₹13,554 crore to create 40 lakh jobs.
That said, if you’re looking for urgent cash to start or expand your business, you may consider going for an instant Navi Cash Loan of up to ₹20 lakh starting from 9.9% p.a.
