The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme launched by the Government of India to promote self-employment and small business development. Under the PMEGP scheme, financial assistance is provided to eligible entrepreneurs to start new manufacturing or service-based enterprises in both rural and urban areas.

The main objective of PMEGP is to generate employment opportunities by supporting micro-enterprises through bank loans combined with government subsidy support. The scheme is implemented through banks and nodal agencies, and applicants must submit proper documentation, including a structured PMEGP project report, while applying for the loan.