Schemes Prime Minister's Employment Generation Programme (P.M.E.G.P)
Prime Minister's Employment Generation Programme (P.M.E.G.P)



  1. Generate employment opportunities in rural as well as urban areas.
  2. Creation of self employment opportunities at local level
  3. Mitigate migration of rural youth to urban areas
  4. Increase wage earning capacity of artisans
  5. Increase growth rate  of rural and urban employment

Ministery of Micro, Small & Medium Enterprises, Govt. of India has started this scheme from August, 2008 by clubbing PMRY and Rural Employment Generation Programme, with a view of strengthen the Micro entrepreneurs.

Under this scheme an amount upto Rs. 25 lakhs for manufacturing industries and Rs. 10 lakhs for service industries is made available as loan for commencing an industry is rural areas. Sub chart as under:-

Sr. No. Categories of Beneficiaries Beneficiaries Contribution Rate of Subsidy
Area (location of project/unit) Urban Rural
1 General 10% 15% 25%
2 Special (S.C./S.T./OBC/Women/Ex-servicemen/Physical Handicapped/
NER/Hilly Area & Boarder.
5% 25% 35%




  1. Inadequate response from Bank.
  2. Sanction of proposals from the Bank at the end of the year.
  3. Reduction of Project Cost from the Bank.
  4. Disbursement of the loan at the end of the year by the Bank.
  5. Huge pendancy at branch and nodal banks

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