Overview
Credit-linked subsidy for setting up new micro-enterprises in manufacturing and service sectors, with higher subsidy for special categories and rural areas.
Why it matters for founders
Use this scheme together with other Startup India and MSME benefits. Our community experts can help you prepare documents and a strong application.
Key benefits
Margin money subsidy of 15% (urban) to 25% (rural) of project cost for general category
Special categories (SC/ST/OBC/women/minorities/ex-servicemen/PwD/NER) get 25% (urban) to 35% (rural)
Bank finances the balance after the beneficiary's own contribution of 5–10%
Second loan for upgrading successful units
Eligibility
- Any individual above 18 years of age
- At least VIII standard pass for projects above ₹10 lakh (manufacturing) or ₹5 lakh (services)
- Only new projects are eligible — not existing units or units that already got government subsidy
- Maximum project cost: ₹50 lakh for manufacturing and ₹20 lakh for service units
Who should apply
- Early-stage founders who meet the eligibility above and have their documents ready
- Businesses that need this type of support (grant, loan or subsidy) in the next 6–12 months
- Applicants who can show a clear plan for how the money or benefit will be used
How to apply
- 1
Apply online on the PMEGP e-portal (kviconline.gov.in)
- 2
Upload the project report and documents
- 3
Application is scrutinised by the District Task Force Committee and forwarded to the bank
- 4
Complete the mandatory Entrepreneurship Development Programme (EDP) training
- 5
Bank sanctions the loan and the subsidy is released to your loan account
Documents checklist
0 of 5 readyTick each document as you collect it — your ticks are saved on this device.
Common mistakes to avoid
- Applying before checking every eligibility condition
- Uploading unclear, unsigned or expired documents
- Using different business names or addresses across documents
- Paying agents who promise guaranteed approval — government applications are free
- Missing the deadline or not tracking the application status
Frequently asked questions
Who can apply for Prime Minister's Employment Generation Programme?
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