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Startup-relevant scheme · Ministry of MSME — Khadi and Village Industries Commission (KVIC)

Prime Minister's Employment Generation Programme (PMEGP)

Open nowChecked 3 October 2026

Prime Minister's Employment Generation Programme (MSME/KVIC): credit-linked margin-money subsidy of 15–35% (higher for rural and special categories) on new micro-enterprise projects up to ₹50 lakh (manufacturing) / ₹20 lakh (services); second loan for upgrading units up to ₹1 crore / ₹25 lakh with 15–20% subsidy. Apply on the KVIC PMEGP e-portal.

Amount
Subsidy up to 35% of project cost
Type of support
Grant, Loan / Credit
Best for
Ideation, Seed / Early-Stage
Who can apply
Aspiring founders, MSMEs, Women entrepreneurs, SC/ST entrepreneurs, Rural entrepreneurs
Go to the official portalSource: Added by Sytezo, Oct 2026

PMEGP is the government's flagship credit-linked subsidy for first-generation entrepreneurs setting up new micro-enterprises, run by KVIC with state KVIBs and District Industries Centres.

Who can apply?
  • Individuals aged 18+; 8th-pass for larger projects (above ₹10 lakh manufacturing / ₹5 lakh services); new units only.
  • SHGs, institutions, cooperatives and charitable trusts are also eligible; one beneficiary per family.
What do you get?
  • Margin-money subsidy: 15% (urban) / 25% (rural) of project cost for general category; 25% / 35% for SC/ST/OBC/minorities/women/ex-servicemen/PwD/NER/hill/border areas.
  • Project cost ceiling: ₹50 lakh (manufacturing), ₹20 lakh (services/trading).
  • Second loan to upgrade successful units: up to ₹1 crore (manufacturing) / ₹25 lakh (services) with a 15–20% subsidy.
How to apply

Apply online on the KVIC PMEGP e-portal (https://www.kviconline.gov.in/pmegpeportal); the application is forwarded to a bank for appraisal. No application fee.

Objectives

Generate self-employment by helping individuals set up new micro-enterprises in rural and urban areas through bank credit with a capital subsidy.

Key links

Deadlines, amounts and windows change. Check the official portal before you apply.

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