PMEGP — Prime Minister's Employment Generation Programme
Ministry of MSME · Central government
A margin-money subsidy of 15%–35% for new micro-enterprises, funded through KVIC.
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
**Margin-money subsidy of 15%–35% of project cost** - Up to ₹50 lakh for manufacturing units - Up to ₹20 lakh for service enterprises
A higher subsidy percentage is available to women, SC/ST, OBC, minorities, ex-servicemen, differently abled persons, and applicants in rural areas. The bank provides the remaining project cost as a composite loan, while the subsidy amount is held as a term deposit receipt (TDR) for 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
- Applicant must be a new micro-enterprise (manufacturing or service). - Applicant must be above 18 years of age. - Family income must be below ₹40 lakh per annum for general category. - Not available to existing units, except for 2nd-loan upgradation.
How to apply
- Begin by registering and submitting your application online through the KVIC e-portal at kviconline.gov.in/pmegpeportal. - Complete the application form, providing personal information, a business plan, and estimated project costs. - Choose the implementing agency closest to you: KVIC, KVIB, or the District Industries Centre (DIC). - Upload the necessary documents, including Aadhaar, educational qualifications, a project report, and category certificates, if applicable. - The chosen agency evaluates your submission and sends shortlisted applications to a Task Force Committee (TFC). - The TFC then holds an interview or assessment of the entrepreneur and the proposed business plan. - Upon approval, the bank sanctions the composite loan, and the subsidy is deposited as a term deposit receipt (TDR) in your account.
Frequently asked questions
Who can apply for PMEGP?
Any Indian citizen aged 18 or older planning to establish a new micro-enterprise in manufacturing (project cost up to ₹50 lakh) or services/trading (up to ₹20 lakh) may apply. Existing units are usually ineligible, unless seeking a second loan for upgradation.
What subsidy percentage does PMEGP offer?
The scheme provides a margin-money subsidy covering 15% to 35% of the project cost, with higher rates for women entrepreneurs, SC/ST/OBC applicants, minorities, ex-servicemen, differently abled persons, and projects in rural or hilly areas.
Is equity taken under PMEGP?
No. PMEGP is a government subsidy scheme, so no equity is taken. The subsidy portion is non-repayable; only the bank loan component must be repaid.
What is the income limit for general category applicants?
General category applicants must have an annual family income of less than ₹40 lakh. Reserved category applicants are not subject to any income limit.
What happens to the subsidy after disbursement?
The subsidy is held as a Term Deposit Receipt (TDR) in the borrower’s bank account for 3 years. Once this lock-in period ends, the amount is set off against the remaining loan principal.
Where do I apply for PMEGP?
Applications are submitted online through the KVIC e-portal at kviconline.gov.in/pmegpeportal. Guidance is also available at your nearest District Industries Centre (DIC), KVIC office, or KVIB.
Details last verified on 3 August 2026. Source: the issuer's published information.