Overview
Credit-linked subsidy for setting up new micro-enterprises in manufacturing and service sectors, with higher subsidy for special categories and rural areas.
Why it matters for founders
Use this scheme together with other Startup India and MSME benefits. Our community experts can help you prepare documents and a strong application.
Key benefits
Margin money subsidy of 15% (urban) to 25% (rural) of project cost for general category
Special categories (SC/ST/OBC/women/minorities/ex-servicemen/PwD/NER) get 25% (urban) to 35% (rural)
Bank finances the balance after the beneficiary's own contribution of 5–10%
Second loan for upgrading successful units
Eligibility
- Any individual above 18 years of age
- At least VIII standard pass for projects above ₹10 lakh (manufacturing) or ₹5 lakh (services)
- Only new projects are eligible — not existing units or units that already got government subsidy
- Maximum project cost: ₹50 lakh for manufacturing and ₹20 lakh for service units
How to apply
- 1
Apply online on the PMEGP e-portal (kviconline.gov.in)
- 2
Upload the project report and documents
- 3
Application is scrutinised by the District Task Force Committee and forwarded to the bank
- 4
Complete the mandatory Entrepreneurship Development Programme (EDP) training
- 5
Bank sanctions the loan and the subsidy is released to your loan account
Documents required
- Aadhaar and PAN
- Project report
- Educational qualification certificate
- Caste / special category certificate (if applicable)
- Rural area certificate (if applicable)
Frequently asked questions
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