PMEGP — Prime Minister's Employment Generation Programme
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Quick Answer
15%–35% margin-money subsidy for new micro-enterprises via KVIC
- Funding amount
- Up to ₹17.5 Lakhs
- Funding type
- Subsidy
- Provider
- Ministry of MSME
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this subsidy
Margin-money subsidy of 15%–35% of project cost (up to ₹50 lakh for manufacturing, ₹20 lakh for services). Higher subsidy for women, SC/ST, OBC, minorities, ex-servicemen, differently abled and rural areas. Bank covers the balance as a composite loan; subsidy locked as TDR for 3 years.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Ministry of Micro, Small and Medium Enterprises (Ministry of MSME) is the Government of India ministry for the MSME sector. It does not run one programme. It runs a set of central schemes, each with its own portal and its own route in: a credit-linked subsidy for new…
Learn moreBenefits & Funding
- Amount
- Up to ₹17.5 Lakhs
What You Get
PMEGP provides a margin-money subsidy of 15% to 35% of the eligible project cost — up to ₹1.75 lakh based on the maximum subsidy ceiling — directly reducing the amount you need to repay as a loan. The scheme is particularly generous for women, SC/ST, OBC, minority, ex-serviceman, differently abled, and rural applicants, who receive higher subsidy rates. There is no equity dilution; the subsidy is a non-repayable government contribution locked as a TDR for 3 years and then applied to your loan. The bank provides the remaining project cost as a composite loan, making PMEGP a one-stop funding solution for new micro-enterprises in manufacturing and services.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Obtain free Udyam Registration at udyamregistration.gov.in
Obtain free Udyam Registration at udyamregistration.gov.in (Aadhaar + PAN + bank details) — mandatory prerequisite.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Who can apply for PMEGP?
Any Indian citizen above 18 years of age who wants to set up a new micro-enterprise in manufacturing (project cost up to ₹50 lakh) or services/trading (up to ₹20 lakh) can apply. Existing units are generally not eligible, except for a second loan for upgradation.
What subsidy percentage does PMEGP offer?
The scheme offers a margin-money subsidy of 15% to 35% of the project cost. Higher subsidy rates apply for women entrepreneurs, SC/ST/OBC applicants, minorities, ex-servicemen, differently abled persons, and projects in rural/hilly areas.
Is equity taken under PMEGP?
No. PMEGP is a government subsidy scheme — no equity is taken. The subsidy portion is non-repayable; only the bank loan component needs to be repaid.
What is the income limit for general category applicants?
General category applicants must have an annual family income below ₹40 lakh per annum. There is no income ceiling for reserved categories.
What happens to the subsidy after disbursement?
The subsidy is locked as a Term Deposit Receipt (TDR) in the borrower''s bank account for 3 years. After the lock-in period, it is adjusted against the outstanding loan principal.
Where do I apply for PMEGP?
Applications are submitted online through the KVIC e-portal at kviconline.gov.in/pmegpeportal. You can also approach your nearest District Industries Centre (DIC), KVIC office, or KVIB for guidance.
Sources
Data on this page is compiled from official program and provider references.
News
- PMEGP supported 8.12 lakh micro entrepreneurs with Rs 24,398 crore since FY2014-15zeenews.india.com · last week
- PMEGP empowers 8.12 lakh micro entrepreneurs with Rs 24,398 crore financial assistancesocialnews.xyz · last week
- PMEGP may get 5-year extension till 2030-31 with Rs 15,000 crore outlay; govt weighs easier normsm.economictimes.com · last week
- PMEGP may get 5-year extension till 2030-31 with Rs 15,000 crore outlay; govt weighs easier normsm.economictimes.com · last week
- KVIC Launches Seva Sankalp Khadi Mahotsav 2026, Disburses ₹289 Crore PMEGP Subsidyindianmasterminds.com · 3 weeks ago
- PMEGP portal upgrades leave applicants in limbotimesofindia.indiatimes.com · last month
Source: Google News aggregated
