PMEGP — Prime Minister's Employment Generation Programme
Ministry of MSME · Central government
KVIC provides a 15%–35% margin-money subsidy to new micro-enterprises.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹17,50,000
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
The margin-money subsidy covers between 15% and 35% of a project's cost. Manufacturing units can receive support of up to ₹50 lakh, while service enterprises are eligible for up to ₹20 lakh.
Applicants from certain categories qualify for a higher rate of assistance. These include women, SC/ST, OBC, minorities, ex-servicemen, differently abled persons, and projects located in rural areas.
The remaining project cost is financed by the bank through a composite loan. The subsidy amount is held as a Term Deposit Receipt (TDR) for a period of three years.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- New micro-enterprises only, in manufacturing or service - Applicant must be above 18 years of age - Annual family income below ₹40 lakh for general category - Not open to existing units, except in the case of 2nd-loan upgradation
How to apply
1. Complete the registration and application process online through the KVIC e-portal at kviconline.gov.in/pmegpeportal. 2. Provide your personal information, business plan and estimated project costs in the application form. 3. Choose the implementing agency closest to you: KVIC, KVIB or the District Industries Centre (DIC). 4. Submit the necessary documents: Aadhaar, educational certificates, project report and category certificates, where applicable. 5. Your application is examined by the agency, which then sends shortlisted cases to a Task Force Committee (TFC). 6. The TFC interviews and evaluates the entrepreneur along with the business plan. 7. Once approved, the bank sanctions the composite loan, and the subsidy amount is credited to a TDR in your account.
Frequently asked questions
Who can apply for PMEGP?
Indian citizens aged over 18 who intend to establish a new micro-enterprise — manufacturing with a project cost of up to ₹50 lakh, or services/trading with up to ₹20 lakh — may apply. Existing units are usually ineligible, though a second loan for upgradation is an exception.
What subsidy percentage does PMEGP offer?
The scheme provides a margin-money subsidy covering 15% to 35% of the project cost, with the higher rates reserved for women entrepreneurs, SC/ST/OBC applicants, minorities, ex-servicemen, differently abled persons, and projects located in rural or hilly areas.
Is equity taken under PMEGP?
No. PMEGP is a government subsidy programme and does not take any equity; the subsidy amount is non-repayable, and repayment applies only to the bank loan portion.
What is the income limit for general category applicants?
General category applicants need an annual family income under ₹40 lakh, while reserved category applicants face no income limit.
What happens to the subsidy after disbursement?
The subsidy remains locked as a Term Deposit Receipt (TDR) in the borrower's bank account for 3 years, after which it is set off against the outstanding loan principal.
Where do I apply for PMEGP?
Apply online via the KVIC e-portal at kviconline.gov.in/pmegpeportal; for assistance, you may also visit your nearest District Industries Centre (DIC), KVIC office, or KVIB.
Details last verified on 18 September 2026. Source: the issuer's published information.