PMEGP Subsidy 2026: 15–35%, Projects up to ₹50 Lakh — Full Guide
PMEGP gives a 15% to 35% subsidy on the project cost of a new small unit. Projects up to ₹50 lakh in manufacturing and ₹20 lakh in services. Own share is 1
PMEGP gives a 15% to 35% subsidy on the project cost of a new small unit. Projects up to ₹50 lakh in manufacturing and ₹20 lakh in services. Own share is 10% (5% for special categories); the rest is a bank loan. Projects above ₹10 lakh need the applicant to have passed Class 8. Apply on the KVIC online portal.
01How much subsidy under PMEGP?
| Category | Own share | Urban subsidy | Rural subsidy |
|---|---|---|---|
| General | 10% | 15% | 25% |
| SpecialSC/ST/OBC, minorities, women, ex-servicemen, persons with disability, NER, hill and border areas | 5% | 25% | 35% |
| Item | Limit |
|---|---|
| Max project cost — manufacturing | ₹50 lakh |
| Max project cost — service/business | ₹20 lakh |
| Second loan (for expansion) | 15% subsidyNER/hill 20%; max ₹15 lakh (NER/hill ₹20 lakh) |
The subsidy is first kept with the bank for 3 years and is adjusted against the loan once the unit runs well.
02Example: pickle & papad unit (rural, general category)
| Item | Amount |
|---|---|
| Total project cost | ₹6.8 lakh |
| Subsidy (25%) | ₹1.7 lakh |
| Your share (10%) | ₹68 thousand |
| Bank loan | ₹4.4 lakh |
Figures from Utkrishi’s basic model (based on government model reports). Full numbers: pickle & papad business →
03Who can apply?
- Any individual above 18 years
- Class 8 pass for projects above ₹10 lakh (manufacturing) or ₹5 lakh (service)
- New units only — not existing units
- Those who already took a government subsidy under another scheme are not eligible
04How to apply
- Prepare the DPR: A bank-ready project report and machine quotations.
- Apply online: Fill the form on the KVIC PMEGP portal and upload the DPR.
- Scrutiny: KVIC/KVIB/District Industries Centre (DIC) checks it and sends it to the bank.
- Bank sanction: The bank sanctions the loan.
- EDP training: Complete entrepreneurship training (EDP) before disbursement.
- Subsidy: The subsidy reaches your loan account through the bank.
05PMEGP or PMFME — which one?
You cannot take both. For a food processing unit, PMFME gives 35% of eligible cost (max ₹10 lakh) — often more than PMEGP for the general category. PMEGP also covers non-food small industries and services, and gives special categories 35% in rural areas. The right scheme depends on your category, location and project.
06Frequently asked questions
How much subsidy does PMEGP give?
General category: 15% urban, 25% rural. Special categories: 25% urban, 35% rural.
What is the maximum project cost under PMEGP?
₹50 lakh in manufacturing and ₹20 lakh in service/business.
How much do I have to invest myself?
10% for the general category and 5% for special categories; the rest is bank loan and subsidy.
Can I take PMEGP and PMFME together?
No. Only one government subsidy per unit.
Is education required for PMEGP?
Class 8 pass for manufacturing projects above ₹10 lakh and service projects above ₹5 lakh.
PMEGP — next step?
Tell us your district and budget — an expert will suggest the next step for free.
Talk on WhatsApp+91 90961 12806All business opportunities →Last checked: 05-10-2026. Scheme rules can change; confirm with the bank/official portal before applying. The bank decides the loan/subsidy; we prepare you for it.
Utkrishi Team
Utkrishi – एग्री बिज़नेस, DPR, सब्सिडी और बैंक लोन में मदद। +91 90961 12806