PMEGP: subsidy-backed finance for new micro units
A margin money subsidy of 15-35% for setting up a new manufacturing or service unit.
4 min read
What you need to know
The Prime Minister's Employment Generation Programme supports new units only — existing businesses are not eligible. Project cost is capped at ₹50 lakh for manufacturing and ₹20 lakh for service units, with the subsidy released through the financing bank and locked in a term deposit for three years.
Subsidy rates depend on category and location: 15% for general category in urban areas, up to 35% for special category applicants in rural areas. The promoter contributes 5-10% of project cost.
Continue your research
Use this guide alongside our product details and eligibility criteria before choosing a lender.
Frequently asked questions
What is the main takeaway from “PMEGP: subsidy-backed finance for new micro units”?
A margin money subsidy of 15-35% for setting up a new manufacturing or service unit.
What should I check before acting on this government schemes guide?
Review the practical points in the guide against your income, obligations, documents and lender requirements.
Can the information in this guide guarantee loan approval?
No. It is general educational information. A bank or NBFC makes the final decision after checking your credit profile, repayment capacity, documents and the applicable product policy.
How can iFINTRUST help after I read this guide?
An iFINTRUST advisor can review your requirement, explain the documents normally requested and help you compare suitable lending options before you apply.