PMEGP (Prime Minister's Employment Generation Programme)

MSME Ministry's flagship credit-linked subsidy scheme for setting up new micro-enterprises in manufacturing and service sectors. Because PMEGP is a credit-linked scheme rather than a pure grant, the partner bank first sanctions 90% (95% for special-category applicants) of the total project cost as a loan, against which the government subsidy is then applied and parked in the loan account. Processing runs through a layered structure of State KVIC Directorates, KVIBs, and District Industries Centres depending on the applicant's location and enterprise type, so first-time applicants are generally advised to start with their local DIC to identify the correct implementing office.