Entrepreneurs in Bengaluru are increasingly turning to the Pradhan Mantri Employment Generation Programme (PMEGP) to secure funding and support for their businesses, but many are facing significant obstacles in obtaining approval. For the financial year 2024–25, the city submitted 914 applications, positioning it among the top five districts in Karnataka for demand. However, despite the high volume of requests, approval rates remain alarmingly low. Banks are approving only a small percentage of the applications, leaving many entrepreneurs in a state of uncertainty.
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20,578 applications for the PMEGP
Across the entire state, Karnataka received a total of 20,578 applications for the PMEGP, but only 6,834 were approved, while over 11,900 were rejected. Additionally, nearly 3,000 applications are still under review. Experts point to incomplete business plans and inadequate documentation as major contributors to the high rejection rates. As a result, numerous entrepreneurs—ranging from small-scale business owners in urban areas to those in rural regions—are struggling to access the subsidy-linked loans that are intended to foster entrepreneurship and create employment opportunities.
This trend reflects a larger systemic issue within the PMEGP, where the gap between demand and approval is widening, preventing many entrepreneurs from capitalizing on the benefits of the program. Despite its potential to drive economic growth, the programme’s current implementation is leaving many applicants without the support they desperately need.