Prime Minister's Employment Generation Programme · Ministry of MSME · KVIC (nodal agency)
PMEGP loan assistance in Pune
A credit-linked subsidy programme to help set up new micro enterprises in manufacturing and services.
Scheme overview
PMEGP is a central sector credit-linked subsidy programme of the Ministry of MSME, implemented through KVIC, State KVIBs and District Industries Centres (DICs). It supports the setting up of new micro enterprises to generate self-employment.
The maximum project cost generally eligible is ₹50 lakh for manufacturing and ₹20 lakh for service/business units. A margin-money subsidy is released through the financing bank based on the category and location of the beneficiary.
Intended beneficiaries
- Individuals above 18 years of age
- Self-help groups, registered societies, production co-operatives and charitable trusts
- First-time entrepreneurs setting up new units
Key features
- Subsidy of 15% (urban) / 25% (rural) of project cost for general category
- Subsidy of 25% (urban) / 35% (rural) for special categories (SC/ST/OBC/minorities/women/ex-servicemen/PwD/NER/hill & border areas, etc.)
- Beneficiary contribution: 10% (general) or 5% (special category) of project cost
- Balance project cost financed by banks as term loan and working capital
Current eligibility (summary)
- Only new projects are eligible; existing units and units that have already availed government subsidy are not
- For projects above ₹10 lakh (manufacturing) or ₹5 lakh (service), at least VIII standard pass is required
- One person from a family is eligible for assistance
- Activities on the negative list are not eligible
General documents
- Aadhaar, PAN and photographs
- Project report
- Educational qualification certificate (where applicable)
- Caste / special category certificate (where applicable)
- Rural area certificate (where applicable)
Application process
- 1
Apply online on the PMEGP e-portal with project details.
- 2
The application is scrutinised by the implementing agency (KVIC / KVIB / DIC).
- 3
Recommended applications are forwarded to the financing bank for appraisal.
- 4
On sanction, complete the mandatory Entrepreneurship Development Programme (EDP) training.
- 5
The bank releases the loan and claims the margin-money subsidy.
Frequently asked questions
Can an existing business apply under PMEGP?
The core PMEGP scheme is for new units. A separate second-loan component for upgradation of existing PMEGP units has been available, check the official portal for current rules.
Is the subsidy paid to me directly?
No. The margin-money subsidy is routed through the financing bank and adjusted as per scheme guidelines.
Government schemes change from time to time. Always confirm the latest guidelines on the official portal before applying. Applications are processed and sanctioned only by the implementing agency and the lender.
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