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.

PMEGP — Prime Minister's Employment Generation Programme

By Ministry of MSME

Up to ₹18LRolling Applications

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

Subsidy providers

Provider

Ministry of MSME

New Delhi · Delhi · India

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.
You
2
3
4
5
6
7
8

How to apply

Four steps from draft to disbursement — one action each.

1
Submit on the official portal
Use the official application link and verify all details before final submission.
2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.

Subscriber Insights

Notion — workspace, docs and AI for startups

PMEGP — Prime Minister's Employment Generation Programme

PMEGP — Prime Minister's Employment Generation Programme

Subsidy providers

Application Process

How to apply

See your fit score for this grant

Frequently Asked Questions

About this subsidy

Eligibility

Benefits & Funding

Timelines & Process

Grants closing soon

Competitions closing soon

Equity closing soon

Debt programs

Subsidies

Startup Software Credits

Notion

Microsoft

Akamai Technologies

Render

Mixpanel

IBM

DigitalOcean

Huawei

Razorpay

Google

Vultr

Datadog