Date: 2026-02-02Category: Press ReleaseState: Union GovernmentCountry: India
Prime Minister’s Employment Generation Programme (PMEGP) assisted 63% of units under manufacturing sector and 93% of units under service sector having projects cost up to Rs. 10 Lakh during the last five years
**Executive Summary**
The Ministry of MSME reports the success of the Prime Minister's Employment Generation Programme (PMEGP) in assisting micro-enterprises. The PMEGP has supported 63% of units in the manufacturing sector and 93% of units in the service sector with projects costing up to Rs. 10 Lakh during the last five years (FY 2020-21 to FY 2024-25). Furthermore, the Ministry is operating the CHAMPIONS portal for grievance redressal and has re-emphasized RBI guidelines regarding collateral-free loans.
**Key Points / Main Content**
* **PMEGP Success & Support:**
* 63% of manufacturing units and 93% of service sector units with project costs up to Rs. 10 Lakh have been assisted under PMEGP during FY 2020-21 to FY 2024-25.
* Priority is given to applications with smaller project costs below Rs. 10 Lakh.
* **RBI Loan Guidelines:**
* Banks should not insist on collateral security for projects with loans up to Rs. 10 Lakh, as per RBI guidelines.
* The Ministry has re-emphasized the strict compliance of this provision to all major banks.
* **Educational Qualifications for Project Setup:**
* There is no educational qualification required to set up projects costing up to Rs. 10 Lakh in the manufacturing sector and up to Rs. 5 Lakh in the service sector.
* **CHAMPIONS Portal:**
* The Ministry of MSME operates the CHAMPIONS portal for speedy and effective grievance redressal.
* The portal also offers handholding support, guidance, advisory services, and connects MSMEs with relevant officials.
* **Loan Interest Rates:**
* RBI has deregulated interest rates on bank advances; interest rates for PMEGP loans are determined by individual banks based on their credit policies.
* RBI has issued directions to Regulated Entities to ensure transparency, fairness, and adequate disclosure of loan terms.
**Impact Analysis**
**Stakeholder: Prospective Beneficiaries of PMEGP**
* **Impact**: Easier access to credit and subsidies for establishing micro-enterprises with small project costs.
* **Action Required**: Utilize the PMEGP scheme and CHAMPIONS portal for guidance and grievance redressal.
**Stakeholder: Banks**
* **Impact**: Need to prioritize sanctioning PMEGP projects and adhere to RBI guidelines on collateral-free loans.
* **Action Required**: Ensure strict compliance with RBI guidelines regarding collateral security for loans up to Rs. 10 Lakh and adhere to issued guidelines for prioritizing PMEGP projects.
**Stakeholder: MSMEs**
* **Impact**: Facilitated navigation of government schemes/policies, guidance and advisory services.
* **Action Required**: Utilize the CHAMPIONS portal to connect with key officials and for grievance redressal.
Key Entities Referenced
Prime Minister's Employment Generation Programme (PMEGP): A central sector scheme that assists prospective beneficiaries in establishing new micro-enterprises primarily with small project costs through small loans.
Ministry of Micro, Small & Medium Enterprises: The ministry operating the CHAMPIONS portal and responsible for PMEGP implementation and guidelines.
Reserve Bank of India (RBI): The regulator whose guidelines are followed for loan disbursement under PMEGP.
Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength (CHAMPIONS): A portal aimed at speedy redressal of grievances pertaining to schemes of the Ministry of MSME including PMEGP.
Ministry of Micro,Small & Medium Enterprises
Prime Minister’s Employment Generation
Programme (PMEGP) assisted 63% of units
under manufacturing sector and 93% of units
under service sector having projects cost up to
Rs. 10 Lakh during the last five years
Ministry of MSME setup the integrated Creation and
Harmonious Application of Modern Processes for Increasing
the Output and National Strength (CHAMPIONS) portal aimed
at effective redressal of grievances
Posted On: 02 FEB 2026 3:34PM by PIB Delhi
Prime Minister’s Employment Generation Programme (PMEGP) is a central sector scheme which assists
prospective beneficiaries in establishing new micro-enterprises primarily with small project costs which
are facilitated through small loans. During the last five-year period from FY 2020–21 to FY 2024–25,
approximately 63% of units under manufacturing sector and 93% of units under service sector having
projects cost up to Rs. 10 lakh have been assisted. Furthermore, following measures have been undertaken
to facilitate access to credit and subsidies for smaller projects under PMEGP:
i. Priority is being accorded to applications from beneficiaries with smaller project costs below
Rs. 10 lakh.
ii. As per Reserve Bank of India (RBI) Guidelines, no collateral security is to be insisted by
Banks for projects involving loan upto Rs. 10 lakh. Strict compliance of this provision has
also been reemphasized by the Ministry to all major Banks.
iii. There is no requirement for any educational qualification for setting up of projects costing up
to Rs. 10 lakh in manufacturing sector and up to Rs. 5 lakh in service sector.
Ministry of MSME is operating an integrated Creation and Harmonious Application of Modern Processes
for Increasing the Output and National Strength (CHAMPIONS) portal aimed at speedy, convenient, and
effective redressal of grievances pertaining to schemes of the Ministry including PMEGP, handholding
and helping MSMEs in their navigation of various government schemes/policies, providing guidance and
advisory services and connecting MSMEs with key officials of Ministry, State Governments, Lending
Institutions and Government agencies.
Reserve Bank of India (RBI) has deregulated interest rates on bank advances. Therefore, interest rates for
PMEGP loans are determined by individual banks linked to their individual credit and underwriting
policies within the regulatory framework prescribed by RBI. However, RBI has issued directions to allRegulated Entities to ensure transparency, fairness, and adequate disclosure of loan terms, thereby
enabling PMEGP beneficiaries to make informed decisions and preventing arbitrary interest recovery. RBI
has also issued necessary guidelines to the Banks to accord priority in sanctioning projects under PMEGP.
This information was given by the Minister of State for Micro, Small and Medium Enterprises (Sushri
Shobha Karandlaje) in a written reply in Rajya Sabha today.
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