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PMEGP

Prime Minister's Employment Generation Programme

A credit-linked subsidy for setting up new micro enterprises. The government pays 15–35% of the project cost as margin money; the bank lends the rest. Projects up to ₹50 lakh in manufacturing and ₹20 lakh in services.

Ministry of MSME · implemented by KVIC, KVIBs and DICs

Up to₹50 lakh project
StatusOpen

Benefits

  • General category: 15% subsidy (urban), 25% (rural)
  • Special category (women, SC/ST, OBC, minorities, ex-servicemen, PwD, NER and others): 25% urban, 35% rural
  • Own contribution of only 5–10% of project cost
  • Projects can be covered under CGTMSE for the loan portion

Eligibility

  • Age 18+; class VIII pass for projects above ₹10 lakh (manufacturing) or ₹5 lakh (services)
  • Only new projects — existing units already availing other government subsidy are not eligible
  • Individuals, SHGs, trusts, societies and production cooperatives

Documents

  • Detailed project report
  • Aadhaar, PAN and category certificate (if special category)
  • Education certificate and EDP training certificate
  • Rural area certificate, if claiming the rural rate

How to apply

  1. Apply online on the KVIC PMEGP e-portal
  2. The application is scrutinised by the district task force and forwarded to your chosen bank
  3. Complete the mandatory entrepreneurship training (EDP) before subsidy release

FAQ

When do I get the subsidy?

The margin money is held in the bank as a term deposit and adjusted against the loan after the unit has run successfully for the lock-in period (typically three years).

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Sources

Last checked: 20 Oct 2026. Summary for information only. The implementing agency's guidelines and your lender's credit policy decide eligibility and terms.