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💼 Jobs, business & workers · Ministry of MSME, through KVIC

Prime Minister's Employment Generation Programme (PMEGP)

Subsidy on bank loans to set up a new small business or unit.

What you get

15–35% of the project cost as a government subsidy

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✅ Benefits

  • Margin money subsidy: 15% (urban) / 25% (rural) for general category; 25% (urban) / 35% (rural) for special categories such as SC/ST, OBC, women, minorities, ex-servicemen and persons with disabilities.
  • Projects up to ₹50 lakh in manufacturing and ₹20 lakh in services.
  • You put in 5–10% of the project cost; the bank lends the rest.

👤 Who can apply

  • Age 18 or above.
  • Class 8 pass for projects above ₹10 lakh (manufacturing) or ₹5 lakh (services).
  • Only new projects; existing units and those who already got a government subsidy are not eligible.

📄 Documents needed

  • Aadhaar and PAN
  • Project report
  • Education certificate
  • Caste / special category certificate, if applicable

📝 How to apply

  • Apply online on the PMEGP e-portal (kviconline.gov.in).
  • The application is forwarded to a bank after a district-level check.
  • Complete the short entrepreneurship training (EDP) before the loan is released.
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Benefits in detail

  • Margin money subsidy: 15% (urban) / 25% (rural) for general category; 25% (urban) / 35% (rural) for special categories such as SC/ST, OBC, women, minorities, ex-servicemen and persons with disabilities.
  • Projects up to ₹50 lakh in manufacturing and ₹20 lakh in services.
  • You put in 5–10% of the project cost; the bank lends the rest.

Who can apply

  • Age 18 or above.
  • Class 8 pass for projects above ₹10 lakh (manufacturing) or ₹5 lakh (services).
  • Only new projects; existing units and those who already got a government subsidy are not eligible.

Documents needed

  • Aadhaar and PAN
  • Project report
  • Education certificate
  • Caste / special category certificate, if applicable
  • Rural area certificate, if applicable

How to apply, step by step

  1. Apply online on the PMEGP e-portal (kviconline.gov.in).
  2. The application is forwarded to a bank after a district-level check.
  3. Complete the short entrepreneurship training (EDP) before the loan is released.
  4. The subsidy is kept with the bank and adjusted after the unit runs for 3 years.

Last checked against the official website: 26 Sept 2026

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