Subsidy + credit
PMEGP - Prime Minister’s Employment Generation Programme
PMEGP offers subsidy (margin money) for new projects in manufacturing and service sectors through bank credit. Rural vs urban subsidy rates, project ceilings, and KVIC / DIC routing - we help with project reports and bank coordination.
Important: Scheme limits, subsidy rates, and eligibility change with government notifications. Banks and agencies make final decisions. Use this page as a structured overview - not legal or financial advice.
Overview
PMEGP is one of India’s most sought programmes for new enterprises: a part of your project cost is reimbursed as subsidy after term loan sanction and capital expenditure. Approvals are route-specific (KVIC/KVIB/DIC), and banks play a central role. We prepare defensible project reports and align subsidy claims with institutional cut-offs.
At a glance
- Margin money subsidy (percentage varies rural/urban & category)
- Maximum project cost ceilings for manufacturing vs service sectors (per guidelines)
- Implemented via KVIC / state KVIB / DIC channels and banks
Typical eligibility signals
- New project (not already benefitted under PMEGP for same unit)
- Resident Indian; education / EDP requirements as per current guidelines
- Own contribution and collateral as per bank / scheme norms
- Negative list activities excluded (per notified list)
Why businesses pursue this route
- Reduces effective equity burden via upfront margin money subsidy
- Supports both manufacturing and service enterprises within ceilings
- Rural projects often attract higher subsidy rates
- Creates formal credit history for follow-on expansion
Official resources
Always verify circulars on the official portal - programme parameters are updated periodically.
How StartupStambh supports you
- 1
Screening
Activity selection, location, and agency route (KVIC/KVIB/DIC).
- 2
Project report
Costing, means of finance, and subsidy calculation sheet.
- 3
Agency & bank
Online application, agency scrutiny, and bank appraisal.
- 4
Subsidy claim
Post-disbursement compliance for margin money release.
Frequently asked questions
What is the maximum subsidy percentage?
Subsidy rates differ for general / special categories and rural / urban locations. We calculate using the active cost-to-project ceiling tables.
Can I apply for a trading-only business?
PMEGP prioritises manufacturing and service sector projects; trading-only models are generally excluded - confirm against the latest negative list.
How long does approval take?
Timelines vary by agency load and bank appraisal. Clean documentation reduces back-and-forth.
Related schemes
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