Central SubsidyCentralCheck status
Prime Minister Employment Generation Programme
Before you apply: PMEGP was approved for 2021-22 to 2025-26. A continuation for the 16th Finance Commission period (from 2026-27) had not been separately notified when this page was checked in September 2026 — confirm on the PMEGP portal before applying.
PMEGP provides margin money subsidies for setting up new micro-enterprises. Higher subsidies are available for women, SC/ST, and rural entrepreneurs.
Max Benefit15–35% subsidy on project cost up to ₹50 Lakh (Mfg) / ₹20 Lakh (Service)
Benefit TypeMargin Money Subsidy
Project Cost Range₹2 Lakh – ₹50 Lakh
Timeline45–90 days
Check My Eligibility Key Benefits
- Margin money subsidy of 15% of project cost in urban areas and 25% in rural areas for general-category applicants.
- Special categories — SC, ST, OBC, minorities, women, ex-servicemen, transgender persons, persons with disabilities, and applicants in the North East, hill and border areas or aspirational districts — get 25% (urban) and 35% (rural).
- Own contribution of 10% of project cost (5% for special categories); the bank lends the balance.
- Maximum project cost ₹50 lakh for manufacturing and ₹20 lakh for service units.
- Successful PMEGP units can take a second loan for upgradation — up to ₹1 crore (manufacturing) or ₹25 lakh (service) — with a 15% subsidy (20% in the North East and hill states).
Who Can Apply
- Any individual above 18 years; self-help groups, registered societies, production co-operatives and charitable trusts can also apply.
- At least Class VIII pass for projects above ₹10 lakh in manufacturing or ₹5 lakh in services.
- Only new units. Existing units, and units that have already received a Government subsidy, are not eligible (except for the second loan).
- One beneficiary per family.
Eligible Business Types
ManufacturingService
MSME Category Applicability
MicroSmall
Eligible Industries
🏭 Manufacturing🍽️ Food Processing🧵 Textiles & Garments💻 IT & ITES🏥 Healthcare & Pharma🌾 Agri & Livestock Processing
How to Apply
- Apply online on the PMEGP e-portal with the project report.
- The District Level Task Force Committee scrutinises the proposal and forwards it to the bank you chose.
- Complete the mandatory Entrepreneurship Development Programme (EDP) training.
- The margin money is kept as a term deposit in the loan account for three years and adjusted once the unit is verified as working.
Apply at: PMEGP e-portal (KVIC)
Required Documents
- Aadhaar
- PAN
- Education Certificate
- EDP Training Certificate
- Project Report
- Caste Certificate (if applicable)
Stacking Compatibility
This scheme can be combined with the following for higher total benefits:
Common Rejection Reasons
- Already availed subsidy
- Age below 18
- Existing unit
- No EDP training
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.