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The Government of Karnataka has introduced the Chief Minister Self Employment Scheme (CMEGP) to create self-employment opportunities in the State. Under CMEGP scheme, Government provides a subsidy on loan for the rural entrepreneurs to start a new business. The Karnataka Government implements this scheme in consultation with District Officers of Karnataka Khadi and Village Industries Board (KVIB) and Joint Director of Department of Industries and Commerce (DIC). In this article, we will look at CM Self Employment Scheme (CMEGP) in detail.

The entrepreneur who is interested to avail this benefit will be provided loan from the banks and the Margin Money will be provided by Karnataka State Khadi and Village Industries Board/District Industries Centers. This Margin Money will be adjusted to loan account of the Entrepreneur only after 3years of Successful establishment and running of the Units.


To create employment opportunities in Karnataka

To provide and support self-employment in the state

To empower rural youth of Karnataka

To provide entrepreneur development training

Loan Details

The maximum project cost allowed under CM Self Employment Scheme (CMEGP) is Rs.10.00 lakhs per unit.

Component of Project Cost

Capital Expenditure Loan, one cycle of working capital. The general category entrepreneur need to pay 10% of project cost as own contribution, and the SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically disabled category entrepreneur have to pay 5% of project cost.

Criteria of Project

The project should be Rural Area project

Per capita investment

Own contribution is needed for CMEGP scheme

Negative list and the unit should be a new one

Government Subsidy

Government Subsidy or Margin Money admissible under the CM Self Employment Scheme (CMEGP) is below:

Sl.No      Categories of beneficiaries The rate of Subsidy of a project cost
1 Area (location of project/unit) Rural
2 General Category 25%
3 Special (including SC / ST / OBC / Women Minorities/ Ex-servicemen, Physically handicapped) 35%

Working Capital at least once should touch 100% limit of Cash Credit within three years of Lock-in period of M.M. and not less than 75% of the utilisation of the sanctioned limit on an average. The lock period for Government Subsidy is three years.

Financial agencies

The financial agencies for CM Self Employment Scheme (CMEGP) are Public Sector Banks and Regional Rural Banks (RRB).

Entrepreneur Development Training

The government of Karnataka provides Entrepreneur Development (EDP) Training under CM Self Employment Scheme (CMEGP). The EDP training will be completed at Centre for Entrepreneurship Development of Karnataka (CEDOK) and Rural Development & Self Employment Training (RUDSET).

Eligibility Criteria

The eligibility criteria for CM Self Employment Scheme (CMEGP) are explained in detail below:

CMEGP scheme is applicable only for the permanent residence of Karnataka

The family can set-up only one unit under CMEGP scheme

Age Limit of Entrepreneur

Government Subsidy or Margin Money admissible under the CM Self Employment Scheme (CMEGP) is below:

Sl.No      Categories of Beneficiaries under CMEGP Age of beneficiaries
1 General Category 21 to 35
2 Special (SC / ST / OBC /Minority Special (SC / ST / OBC / Minorities/Women, Ex-servicemen, Physically handicapped) 21 to 35

Documents Required

The following documents are required for CMEGP scheme is listed below:

Detailed project report (DPR)

Recent passport photograph

Educational qualifications

Age proof

Voter ID/Ration Card

EDP training certificate

Rural certificate for the proposed unit

Ex-servicemen certificate

Caste Certificate in case of SC, ST, OBC, MIN

Physically handicapped certificate