Economy & Bankingv1 · 1 version
PMEGP — Subsidy-Backed Loans for New Micro Units
The Prime Minister's Employment Generation Programme (PMEGP) is a central sector scheme of the Ministry of Micro, Small and Medium Enterprises that pairs a bank loan with a one-time government subsidy so that aspiring entrepreneurs can open new non-farm micro units. It is in the news because the ministry released ₹1,000 crore of that subsidy on 28 October 2026 for 11,333 new enterprises carrying about ₹3,260 crore of bank credit.
Last updated 29 October 20265 min read
Latest update
Created the PMEGP card: the 2008 merger, KVIC delivery, 15–35% subsidy and project caps, and the ₹1,000 crore tranche of 28 October 2026 for 11,333 units.
- PMEGP
- margin money subsidy
- KVIC
- micro enterprises
- self-employment
- PMRY
- REGP
- credit-linked subsidy
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