PMEGP: 15–35% Subsidy for New Businesses
What is the Scheme?
The Prime Minister's Employment Generation Programme (PMEGP) gives a margin money subsidy on a bank loan for new businesses. Manufacturing projects up to ₹50 lakh and service projects up to ₹20 lakh are covered.
How Much Money Will You Get?
| Category | Urban | Rural |
|---|---|---|
| General | 15% | 25% |
| Special (SC/ST/OBC/Women/Minority/Ex-servicemen) | 25% | 35% |
Eligibility
- Age 18+; 8th pass (for projects above ₹10 lakh manufacturing / ₹5 lakh services)
- A new project — not on an existing unit
- Only one person per family can benefit
- Own contribution: general 10%, special category 5%
Documents Required
- Aadhaar, PAN, photo, caste certificate (if applicable)
- Project report, education proof
- Rural area certificate (for the rural rate)
How to Apply
- Apply online via the PMEGP e-portal at kviconline.gov.in
- Choose the agency (KVIC/KVIB/DIC) and district
- Score card interview → forwarded to bank → sanction
- EDP training is mandatory (before loan release)
- The subsidy stays locked in the bank for 3 years, then gets adjusted
Frequently Asked Questions
Should I go for PMEGP or ODOP?
Both are margin money schemes — you can only get one on the same unit. ODOP focuses on UP's ODOP product and has different slabs; PMEGP is all-India. Choose whichever gives you a higher subsidy based on your project and category.
Is a second loan available?
Yes, if the first unit succeeds, a 15–20% subsidy is available on a second loan (up to ₹1 crore for manufacturing) for upgradation.
Need help filing your PMEGP application?
ClaimDesk (A NorthStar Advisors brand, Noida) handles everything from documentation to filing and follow-up. The first conversation is completely free.
MSMEUP.com is independent information & tools — free, and not run by any consultancy. ClaimDesk is a separate, private consultancy (a NorthStar Advisors brand) for those who want professional filing help; its fee is for that service, not a government charge, and using it is entirely optional — MSMEUP's guides and tools work the same with or without it.
Official portal: kviconline.gov.in Last reviewed: Aug 2026
This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.