Government Scheme

PMEGP Employment Generation Programme

Credit-linked subsidy for new micro-enterprises through banks with margin money support, implemented by KVIC/KVIB/DIC to generate employment across manufacturing and services.

₹50 Lakh

Max Manufacturing Cost

₹20 Lakh

Max Service/Trading Cost

35%

Maximum Subsidy

What is PMEGP?

The Prime Minister’s Employment Generation Programme (PMEGP) is a flagship credit-linked subsidy scheme by the Government of India, designed to fuel entrepreneurship by providing financial assistance to set up new micro-enterprises.

High Subsidy

Benefit from 15% to 35% margin money subsidy based on your category and location.

Bank-Linked

Seamless integration with all major public and private sector banks for loan processing.

Expansion Support

Existing units can apply for a second loan up to ₹1 Crore for technology upgradation.

Inclusive Growth

Special provisions for SC, ST, OBC, Women, Minorities, and Rural entrepreneurs.

Eligibility Criteria

Age & Status

Individuals above 18 years, SHGs, Co-operatives, and Trusts are eligible.

Target Unit Type

Support is exclusively for setting up new micro-enterprises. Units assisted previously or under MUDRA (first loan) aren't eligible for subsidy here.

Educational Norms

VIII standard pass required for projects above ₹10L (mfg) & ₹5L (service/business).

Contribution Factor

Low personal investment: 10% for General and only 5% for Special categories.

Major Sectors Covered

Manufacturing

Projects up to ₹50 Lakh (Food processing, Textiles, Chemical, etc.)

Services

Projects up to ₹20 Lakh (Logistics, IT, Hospitality, etc.)

Trading/Business

Micro-retail, Distribution, and more up to ₹20 Lakh.

Why Choose Our PMEGP Support?

We go beyond simple documentation; we provide strategic advisory to ensure your startup gets the funding it deserves.

Professional DPR

Custom-crafted Detailed Project Reports that resonate with bank credit departments.

Bank Liaisoning

Expert coordination with banks to expedite assessment and sanction of your term loan.

Portal Management

End-to-end management of your online application on the KVIC portal from registration to tracking.

EDP Training Advisory

Guidance on completing mandatory entrepreneurship training required for subsidy release.

Subsidy Matrix

A ready reference for margin money subsidy percentages across different categories.

Beneficiary Type	Urban	Rural
General Category	15%	25%
Special (SC/ST/OBC/Women)	25%	35%

Example Calculation

A hypothetical example for a Manufacturing Project of ₹10 Lakh in a Rural Area.

₹10 Lakh

Project Cost

₹3.5 Lakh

Subsidy Recievable (35%)

Financial Breakdown

Own Contribution (5%)

₹50,000

Bank Loan (95%)

₹9,50,000

Subsidy Lock-in Period

The margin money (subsidy) is kept in a separate Term Deposit Account for **3 years**, after which it is adjusted to your loan account, reducing the total repayment amount significantly.

Simple Application Process

Getting your PMEGP funding is easier than ever with our streamlined 4-step assistance model.

01

E-Portal Registration

We handle your comprehensive online application and project profile submission on the national PMEGP portal.

02

DTFC Recommendation

Assisting in the District Task Force Committee screening to ensure your project gets recommended to the bank.

03

Bank Sanction & Release

Professional presentation to the financing bank for quick credit appraisal and term loan sanction.

04

EDP Training & Margin Money

Mandatory training coordination and management of the final margin money (subsidy) disbursal to your account.

Required Documents

A complete checklist for individual entrepreneurs and entities.

Aadhaar Card & PAN Card of Proprietor

Detailed Project Report (DPR) / Profile

8th Pass Certificate (Mandatory for >₹5L/₹10L Cost)

Caste / Minority Certificate (Special Category)

Gram Panchayat Certificate for Rural Area Units

Quotation of Machinery & Pre-operative Expenses

Our experts provide a detailed documentation kit once you enroll with us.

Is your unit ready for Expansion?

Under the PMEGP 2.0 guidelines, existing high-performing units can apply for a **Second Loan** for technology upgradation and expanding capacity.

Up to ₹1.00 Crore Loan

15-20% Subsidy

MUDRA Units also Eligible

Low Interest Rates

PMEGP 2.0

Helping existing micro-units scale to small-scale enterprises.

Check Eligibility

Frequently Asked Questions

Common queries regarding the PMEGP scheme and application.

KVIC is the single national nodal agency. At the state level, it is implemented through State KVIC Directorates, State KVIBs, and District Industries Centres (DICs) along with banks.

The maximum admissible project cost is ₹50 lakh for the manufacturing sector and ₹20 lakh for the business/service sector.

No, PMEGP is primarily for new micro-enterprises. However, existing PMEGP/REGP/MUDRA units can apply for a second loan for upgradation with a 15-20% subsidy.

Yes, Entrepreneurship Development Programme (EDP) training is mandatory for all beneficiaries before the release of the first instalment of the loan.

The typical repayment period ranges from 3 to 7 years, following an initial moratorium of up to 12 months as determined by the financing bank.

As per RBI guidelines, loans up to ₹10 lakh are collateral-free. For projects above this, the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) cover is typically used instead of third-party collateral.

Working capital can be up to 40% of the project cost for manufacturing and up to 60% for service/trading sectors. Any bank finance beyond these limits will not be eligible for subsidy.

Ready to apply for PMEGP?

Our team helps you navigate the entire process from application to disbursal, ensuring you maximize your subsidy benefits.

Start Application Consult an Expert