§1Who it is for

  • Anyone above 18; no income limit
  • New units only; a unit already running, or one that has already received a subsidy, is not eligible
  • Class 8 pass is required for projects above ₹10 lakh in manufacturing and above ₹5 lakh in services
  • Self Help Groups, institutions registered under the Societies Registration Act, production co-operative societies and charitable trusts can also apply
  • Special categories (SC/ST/OBC/women/transgender/divyang/ex-servicemen/NER/aspirational and border districts) get a higher subsidy

Check your eligibility in 6 questions

§2How much you get

  1. General category: subsidy of 15% of project cost in urban areas, 25% in rural areas
  2. Special category: 25% urban, 35% rural
  3. Maximum project cost: manufacturing ₹50 lakh, service/business ₹20 lakh
  4. Panchayati Raj area = rural, municipality area = urban (2022 revision)
  5. Second loan for upgradation: up to ₹1 crore in manufacturing and ₹25 lakh in services, 15% subsidy (20% in NER/hill areas), 10% own contribution (Delhi KVIB page)
  6. RBI norm (from 1 April 2026): banks cannot ask for collateral on loans up to ₹20 lakh; PMEGP units are also collateral-free up to ₹20 lakh

§3Documents

Tick each one as you get it ready.

§4How to apply

  1. 1

    Fill in the online application and DPR on the KVIC PMEGP e-portal

  2. 2

    The implementing agency (KVIC/KVIB/DIC) and the district task force committee check the application and send it to the bank

  3. 3

    The bank does a credit appraisal and sanctions the loan

  4. 4

    Complete the EDP training

  5. 5

    After the loan is released, the margin money subsidy stays with the bank in a lock-in/TDR; it is adjusted after verification

Open the official portal

§5Why applications get rejected

  • Banks reject 40–50% of applications: a risk-averse approach and too much reliance on the CIBIL score (Rajya Sabha Standing Committee, 333rd Report, Mar 2026)
  • A unit already running, or one that has already received a government subsidy – not eligible under the scheme (SBI PMEGP page)

§6Businesses it helps

Need a PMEGP file prepared?

DPR, loan file and documents — we can get them prepared for you.

Ask on WhatsAppSee services

Our interestPreparing files is our paid service. You can apply for the scheme yourself, free of charge.

Sources

  1. PIB, 30 May 2022: PMEGP continued over 15th FC cycle 2021-22 to 2025-26 (project caps, subsidy rates)
  2. PIB, 2 Feb 2026: Rajya Sabha reply on PMEGP (no collateral up to ₹10 lakh loan; no education requirement up to ₹10 lakh mfg / ₹5 lakh service)
  3. PIB, 11 Mar 2026: Rajya Sabha Standing Committee on Industry, 333rd Report on MSME Demands for Grants 2026-27 (PMEGP BE ₹4,500 cr, 40-50% bank rejection, Udyam 7.69 cr)
  4. SBI: PMEGP product page (eligible entities, own contribution 10%/5%, exclusions; NOTE its project-cost caps are pre-2022 and outdated)
  5. Delhi Khadi & Village Industries Board: Revised PMEGP scheme guidelines page (second-loan/upgradation limits)
  6. Social News XYZ (IANS), 18 Jun 2026: KVIC disburses ₹504.68 cr margin money for 22,259 PMEGP units
  7. KVIC PMEGP e-portal (application portal; did not resolve from our network on 4 Oct 2026)
  8. RBI Master Direction on Lending to the MSME Sector (amended 9 Feb 2026: collateral-free limit ₹20 lakh from 1 Apr 2026, incl. PMEGP)

Checked on 4 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice; confirm with the department or bank.