Ministry of MSME · KVIC / KVIB
PMEGPPrime Minister's Employment Generation Programme
Start a new manufacturing or service unit and get up to 35% of the project cost as a government subsidy.
First-time entrepreneurs setting up a new unit — flour mills, bakeries, packaging units, fabrication shops, salons, repair centres.
What you get
- Margin-money subsidy of 15% to 35% of the project cost depending on category and location
- Bank finances 90–95% of the project as term loan + working capital
- Subsidy is kept as a 3-year deposit and then adjusted against your loan
- Second loan of up to ₹1 crore (manufacturing) for upgrading successful PMEGP / Mudra units
Who can apply
- Any Indian above 18 years
- Class 8 pass for projects above ₹10 lakh (manufacturing) or ₹5 lakh (service)
- Only new projects — units that already availed a government subsidy are not eligible
- Self-help groups, charitable trusts and production cooperatives can also apply
Step-by-step process
- 1Free consultation & project idea finalised
- 2Bank-ready project report prepared
- 3Online application on the KVIC PMEGP portal
- 4District task-force interview
- 5Bank sanction & EDP training
- 6Loan disbursed, subsidy released to bank
Documents needed
Calculate
PMEGP Subsidy Calculator
Your subsidy, own contribution and bank loan for a new unit.
Machinery + building/shed + working capital for one cycle.
*Special category: SC/ST, OBC, minorities, women, ex-servicemen, transgender, divyang, NER, hill & border areas, aspirational districts.
35% of project cost — you don't repay this
Also consider
Schemes that work well with this one
Collateral-free loans up to ₹20 lakh for shops, traders, small manufacturers and service businesses.
- ₹50 K
- Shishu
- ₹5 L
- Kishore
- ₹10–20 L
- Tarun / Tarun Plus
Get a bank loan without pledging your house or land — the government guarantees it for you.
- 75–90%
- Guarantee cover
- 0
- Property to mortgage
- MSE
- New & existing units
For pickle, papad, masala, bakery, snacks, flour, oil and dairy units — 35% subsidy up to ₹10 lakh.
- 35%
- Credit-linked subsidy
- 10%
- Your contribution
- ₹40 K
- Seed capital per SHG member
Scheme details are summarised from official guidelines and may change. Final eligibility, loan amount and subsidy are decided by the bank and the implementing agency.