PMEGP Loan Scheme 2026: Secure Up to ₹50 Lakh Credit-Linked Subsidy
The Prime Minister's Employment Generation Programme (PMEGP) offers financial assistance up to ₹50 Lakhs for manufacturing projects and ₹20 Lakhs for service businesses, backed by a government subsidy of up to 35%. Here is your full application walkthrough.
1. Subsidy Percentages & Category Matrix
PMEGP provides a 'Margin Money' subsidy directly deposited into a 3-year lock-in bank account:
- General Category (Urban): 15% Subsidy | 10% Own Contribution | 75% Bank Loan
- General Category (Rural): 25% Subsidy | 10% Own Contribution | 65% Bank Loan
- Special Category (SC/ST/OBC/Women/Ex-Servicemen - Urban): 25% Subsidy | 5% Own Contribution | 70% Bank Loan
- Special Category (Rural): 35% Subsidy | 5% Own Contribution | 60% Bank Loan
2. Eligibility Criteria (2026 Guidelines)
- Any individual above 18 years of age (no income ceiling).
- Educational qualification: Minimum 8th pass for manufacturing projects over ₹10 Lakhs and service projects over ₹5 Lakhs.
- Only new projects are eligible; existing units previously funded by other government subsidies cannot re-apply.
DPR (Detailed Project Report) Tip
Your Project Report must clearly show financial viability, raw material sources, machinery quotes, and employment generation capacity. Uses of KVIC pre-approved project templates increase approval speed by 2x.
3. Online Application via KVIC e-Portal
Submit your application at `kviconline.gov.in`. Upload your Aadhaar, PAN, Project Report, EDP Training Certificate (if completed), and Caste/Category Certificate.