PMEGP Scheme 2026 – 15% to 35% Subsidy on Projects up to ₹50 Lakh
Prime Minister's Employment Generation Programme (PMEGP)
Government credit-linked margin money subsidy scheme for setting up new micro-enterprises in the non-farm sector. Eligible applicants can receive 15% to 35% subsidy, with subsidy-admissible project cost up to ₹50 Lakh for manufacturing and ₹20 Lakh for business/service units.
Who Can Apply?
Verified criteria and borrower eligibility guidelines set by the Government of India.
Age & Income
Any individual above 18 years of age can apply. There is no income ceiling for setting up an eligible project under PMEGP.
Education Criteria
Minimum VIII standard pass qualification is required for projects above ₹10 Lakh in manufacturing and above ₹5 Lakh in the business/service sector.
New Enterprises
PMEGP assistance for the first loan is available for new viable micro-enterprises. Activities falling under the scheme's negative list are not eligible.
Eligible Applicants
Individuals, eligible Self Help Groups, registered societies, production cooperative societies and charitable trusts may apply subject to applicable PMEGP conditions.
Special Categories
SC, ST, OBC, minorities, women, ex-servicemen, transgender persons, differently-abled persons and applicants from notified NER, aspirational, hill and border areas receive enhanced assistance.
Family Eligibility
Only one person from a family is eligible for financial assistance for setting up a new enterprise under PMEGP, as defined under scheme guidelines.
Key Features
Core benefits, guarantees, and subsidy structures under this flagship program.
15% to 35% Margin Money Subsidy
General category applicants receive 15% subsidy in urban areas and 25% in rural areas. Special category applicants receive 25% in urban areas and 35% in rural areas.
Manufacturing Projects
Margin money subsidy is admissible on project cost up to ₹50 Lakh for eligible new manufacturing units.
Business & Service Projects
Margin money subsidy is admissible on project cost up to ₹20 Lakh for eligible business and service sector units.
Low Beneficiary Contribution
General category beneficiaries contribute 10% of project cost, while eligible special category beneficiaries contribute 5%.
EDP Training
EDP training is mandatory for claiming margin money subsidy, except for projects up to ₹2 Lakh. Training is at least 5 days for projects up to ₹5 Lakh and at least 10 days for projects above ₹5 Lakh.
Online Application
Applications for new PMEGP units are submitted online through the official PMEGP portal and processed through the designated implementing agency and financing bank.
Scheme Benefits
Application Process
Online Application
Submit the PMEGP application online with Aadhaar authentication, applicant details, proposed activity and required supporting documents.
Project Report & Scrutiny
Submit a viable project report detailing project cost, capital expenditure, working capital, expected revenue and employment generation. The implementing agency carries out preliminary scrutiny.
Bank Appraisal & Sanction
The eligible application is forwarded to the selected financing bank, which independently evaluates technical feasibility, financial viability and repayment capacity before taking a credit decision.
EDP, Disbursement & Subsidy
After completing applicable EDP requirements and loan formalities, the bank processes disbursement and margin money subsidy. The subsidy is subject to the prescribed three-year lock-in and subsequent adjustment as per PMEGP guidelines.
Documents Required
Keep the following paperwork ready for instant verification and fast processing.
Frequently Asked Questions
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