How much support?
| Applicant category | Own contribution | Urban subsidy | Rural subsidy |
|---|---|---|---|
| General | 10% of project cost | 15% | 25% |
| Special, including eligible women | 5% | 25% | 35% |
The official FAQ lists project ceilings of ₹50 lakh for manufacturing and ₹20 lakh for business/service projects. Land cost is excluded. The rural/urban rate depends on the unit's location; category and other conditions must be met. PMEGP official FAQ.
Illustration: On a ₹10 lakh eligible rural project, a qualifying woman in the special category would contribute ₹50,000 and the indicated margin-money subsidy is ₹3.5 lakh. This is an illustration, not a sanction or cash paid upfront. The bank assesses the project, and the FAQ describes a three-year subsidy lock-in and adjustment after positive physical verification.
Key eligibility
- Individual applicants must be over 18; there is no income ceiling stated in the FAQ.
- For manufacturing projects above ₹10 lakh or business/service projects above ₹5 lakh, at least an eighth-standard pass is required.
- The main new-unit route covers new viable non-farm enterprises; existing units and certain previously subsidised units are generally excluded. The FAQ separately mentions a second-loan route for specified existing units.
- Activities on the scheme's negative list are excluded; the bank makes its own credit decision.
How to apply
Prepare a detailed project report, register on the PMEGP portal, select an implementing agency and bank, and submit applicable identity, project, category and rural-location evidence. KVIC, state KVIBs, district industries centres and the Coir Board for applicable activities are listed as agencies. EDP training is required for projects over ₹2 lakh under the FAQ. Confirm current application status and exact requirements locally.
Source checked: 28 October 2026. Rules, funding availability and lender decisions can change.
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