PMEGP Government Business Loan with Subsidy for New Units
Government-backed credit-linked subsidy scheme to start new micro enterprises in India.
Important Financials
Application Procedure
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How to Apply: Step by Step Process
2. Fill in personal, business and project details, upload required documents (ID, address, education, project report, quotations, category certificates etc.), and submit the application.
3. The application is scrutinised by the District-level Task Force Committee (DLTFC) or implementing agency for viability and eligibility; shortlisted candidates may be called for interview.
4. Selected applications are forwarded to banks for appraisal; the bank conducts credit assessment and sanctions the loan as per its norms.
5. Beneficiary completes EDP (Entrepreneurship Development Programme) training as per guidelines, if required.
6. Bank releases first instalment of loan, claims margin money subsidy online through KVIC/nodal bank; subsidy is parked in TDR for three years and adjusted after successful verification.
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- USD: $ 99.98
- USD: $ 8.32 - $ 83.32
- USD: $ 6.65
About The Scheme In Details
Prime Minister’s Employment Generation Programme (PMEGP)
PMEGP is a central-sector Government Scheme that provides bank-linked business loans with margin money (subsidy). It helps individuals and small groups start new micro-enterprises in manufacturing and services across India. Additionally, KVIC, KVIBs, and District Industries Centres (DICs) implement this scheme along with participating banks. It also merges the earlier REGP and PMRY schemes.
What this scheme offers
PMEGP offers a credit-linked subsidy on new projects only. It does not cover expansion or modernisation. Furthermore, banks route the subsidy directly to beneficiaries.
The maximum project cost is typically up to ₹50 lakh for manufacturing units. For service units, the limit is up to ₹20 lakh. Moreover, bank finance and margin money subsidy vary by category and area.
The scheme provides subsidy ranging from 15% to 35% of the project cost. Special categories such as SC/ST/OBC, women, minorities, ex-servicemen, and people from NER, hill, or border areas receive higher subsidy. Rural units also get better support.
Additionally, PMEGP provides one-time assistance to set up new micro-enterprises for sustainable self-employment.
Beneficiary contribution and bank finance
General category applicants contribute 10% of the project cost. The bank then finances the remaining 90%. For special category applicants, own contribution is only 5%, and the bank covers 95%.
Furthermore, the government keeps the subsidy in a separate TDR for 3 years. After the unit successfully runs through the lock-in period, it is then adjusted.
In fact, PMEGP has already supported over 10 lakh micro-businesses with loans of more than ₹73,000 crore since inception. Therefore, it significantly contributes to employment generation in rural and urban India.
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- Subscribe Now This product has multiple variants. The options may be chosen on the product page
- USD: $ 99.98
- Subscribe Now This product has multiple variants. The options may be chosen on the product page
- Select options This product has multiple variants. The options may be chosen on the product page
- USD: $ 8.32 - $ 83.32
- USD: $ 6.65
- Subscribe Now This product has multiple variants. The options may be chosen on the product page
- Subscribe Now This product has multiple variants. The options may be chosen on the product page
- Subscribe Now This product has multiple variants. The options may be chosen on the product page
- Select options This product has multiple variants. The options may be chosen on the product page
- USD: $ 749.98 - $ 4,916.65
- Subscribe Now This product has multiple variants. The options may be chosen on the product page
- Subscribe Now This product has multiple variants. The options may be chosen on the product page
- Subscribe Now This product has multiple variants. The options may be chosen on the product page
Disclaimer: StartupMandi is an independent professional service platform and is not a bank, NBFC, financial institution, or government authority. We are not affiliated with, endorsed by, or officially connected to the respective lender or scheme provider. We do not provide loans directly. Our role is limited to sharing publicly available information and offering optional assistance services. All scheme details, images, documents, and information are sourced from official websites, public announcements, and publicly available resources. Applicants are advised to verify all information directly with the respective financial institution before applying.
