Margin-money subsidy
15% in urban areas and 25% in rural areas for general-category applicants; up to 35% in rural areas for special-category applicants.
PMEGP at a glance
Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme run by the Ministry of MSME through KVIC.
Who can apply
New micro enterprises set up by individuals, SHGs, societies and other eligible entities. Existing units are not covered.
Enterprise size
Micro enterprises as defined under Udyam. The unit must be new and not a conversion or expansion of an existing business.
Where to apply
Applications are submitted online through the KVIC portal and routed through banks for appraisal and margin-money release.
Margin-money subsidy rates
The subsidy is calculated as a percentage of the project cost and is released as margin money through the financing bank.
| Applicant category | Urban area | Rural area |
|---|---|---|
| General category | 15% | 25% |
| Special category* | 25% | 35% |
*Special category includes SC/ST, OBC, women, ex-servicemen, persons with disabilities, minorities, North-Eastern and hill/border-area applicants as defined by the scheme guidelines. Please confirm the current category list on the official portal.
Eligibility
New units (not existing ones); individuals, SHGs, societies.
- Must be a new unit, not an existing business or expansion
- Individuals, self-help groups and registered societies
- Micro enterprise size as per Udyam classification
- Applicants must meet the education and age norms set by KVIC
- Special-category applicants receive a higher subsidy rate
How to apply for PMEGP
The application process is online and bank-mediated. Keep your project report, identity proof and category certificate ready before you start.
01
Prepare documents
Draft a project report, keep Aadhaar/PAN, photographs and category proof ready.
02
Submit online
Fill the application on the KVIC portal and select your financing bank.
03
Bank appraisal
The bank appraises the project and releases the margin-money subsidy on approval.
Not sure if PMEGP is the right fit?
Answer four quick questions about your firm and see every scheme you may qualify for — including PMEGP, CGTMSE, MUDRA, CLCSS and more.
Prototype disclaimer: This page is part of a student capstone project and is not an official government source. Scheme details, subsidy rates and eligibility rules change over time. Please verify everything at the official KVIC PMEGP portal before applying.