Reviewed by the CreditCares advisory desk · 13 years in business finance · Last updated 10 July 2026
PMEGP — start a new unit with a 15–35% subsidy.
The Prime Minister's Employment Generation Programme funds new manufacturing and service units — with a government margin-money subsidy of 15–35% of the project cost.
Subsidised capital for first-generation entrepreneurs
PMEGP is implemented through KVIC, KVIB and District Industries Centres. The bank funds your project as a term loan; the government releases the margin-money subsidy into the account, reducing what you effectively repay.
Subsidy rates are higher for special categories (SC/ST, women, minorities, ex-servicemen, NER/hill areas) and for rural locations — up to 35% of project cost. Your own contribution is just 5–10%.
Who is eligible?
- Individuals above 18 years — new units only
- 8th pass for projects above ₹10 L (manufacturing) / ₹5 L (services)
- Self-help groups, societies & trusts also eligible
- Unit must not have availed subsidy under another central scheme
- Existing units and expansion cases are not eligible
Documents you'll need
- KYC and passport-size photographs
- Education certificate (8th pass, where applicable)
- Detailed project report
- Caste / special-category certificate if claiming higher subsidy
- Rural-area certificate for rural subsidy rates
Planning a new unit under PMEGP? We map your profile to the right lenders, prepare a bank-ready file and coordinate until disbursal — at no upfront cost.
Check your eligibility