Prime Minister’s Employment Generation program is a loan based raised up in the early years of 2008. This scheme is the combination of prime minister’s Rozar Yojana (PMRY) and Rural Employment Generation program (REGP).

         This concept improved by the Khadi and Village Industries Commission (KVIC). The main theme of this loan is to provide financial help under the eligibility candidates, this scheme can contribute 25 lakh for the manufacturing sector and 10 lakh to the service or business sector.

          Assumption if a person wants to establish the manufacturing sector due to lack of money he remained as an unemployed, instead of stepping back his career he can apply for the PMEGP loan, he need to invest 10% of his worth the government will invest 35% and the remaining worth can be taken with the help of this scheme loan and return back periodically.

          This scheme offered to all categories like physically challenged, SC, ST, OBC, minorities, women and ex-servicemen, etc. The minimum educational qualification of 8th standard and age limit was above 18 years are important factors to apply for the loan.


  • To develop the nation with employment opportunities- creating the employment to the rural as well as urban areas in India by setting up the new self-employment projects
  • Provide a common ground for the widely dispersed traditional artisans and unemployed youth
  • Taking steps to prevent migration over India people to seek employment by giving them stable and sustainable work through employment
  • To provide financial support for the employment growth in India, India will be a developed nation when our country solved the problem of unemployment
  • To encourage the backward people, the main reason for introducing the number of schemes to cast away the backwardness from our country
  • To generate self-satisfaction to the poor people by providing the employment shelter
  • To make India with the strong rural community, once the backwardness erase automatically India will be the Developed nation
  • To give equal rights for both rural and urban youth and make proof of them self’s
  • To increase the income capacity and concentrate on the graph development of both rural and urban employment.
  • To increase the wage capacity and contribute to increasing the growth rate of rural and urban employment.


The scheme offers financial assistance to people on the basis of different criteria, whereas this scheme covers micro, small and medium-sized enterprise.

For the manufacturing sector, the maximum limit of the cost of the project will be RS 25 lakh, for the business and service sector the limit up to the worth of 10 lakh in the plains and RS 1.5 lakh in the hilly regions.

This scheme is applicable to all technical and economic projects in rural as well as urban areas under the micro enterprise’s sector.

Only one person from the entire family will be permitted to obtain financial assistance under this scheme.

Assistance under this scheme is only for the new projects, in this scheme will not be available to activities indicated in the negative list.


The rates of the subsidy will be 155 of the general category in urban areas and 25% in rural areas. For the special category of people, the subsidy from the Government will be 25%for urban areas and 35% for rural locations.

The balance amount of the total project cost is provided by the banks as the term loan to the micro-unit entrepreneur. This term loan is more commonly referred to as PMEGP loan.

Eligible units will be covered under the credit Guarantee Fund Scheme for Micro and small enterprises (excluding Margin and Money subsidy component).

General category: The eligible subsidy is at the range of 15% of the project cost in the urban area and 25% of the project cost in the rural area.

Special category: the eligible subsidy is 25% of the project in the urban area and 35% of the project cost in the rural area.

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