PMEGP Scheme 2025–26 · Official KVIC Data
PMEGP Subsidy Rate 2025–26: Full Category-Wise Breakdown
Exact subsidy percentages, project cost limits, and who qualifies for 35% — verified from official Ministry of MSME & KVIC guidelines.
⚡ Quick Answer: PMEGP Subsidy at a Glance
General · Urban
15%
Lowest subsidy tier
General · Rural
25%
Rural area advantage
Special · Urban
25%
SC/ST/OBC/Women etc.
Special · Rural
35%
Highest subsidy tier
If you have ever typed “PMEGP me subsidy kitna milta hai” into Google, you are not alone. Thousands of aspiring entrepreneurs search for this answer every month — and get buried in vague answers that skip the most important part: your exact subsidy depends on two things, and two things only — where your business is located and which category you belong to.
This guide gives you the complete, official PMEGP subsidy rate table for 2025–26, explains every category in plain language, tells you the maximum project cost limits, and shows you how to calculate the exact rupee amount you could receive — before you even apply.
What Is PMEGP? (पीएमईजीपी योजना क्या है)
PMEGP (Prime Minister’s Employment Generation Programme) is India’s flagship credit-linked subsidy scheme for micro-enterprises. Launched in 2008 by the Ministry of MSME, it provides direct government subsidy — called Margin Money — to help entrepreneurs start manufacturing or service units with minimal upfront investment.
In simple terms: the government pays a portion of your project cost outright. You bring 5–10%, the bank finances the rest, and the subsidy reduces what you actually need to repay. The scheme is administered nationally by KVIC (Khadi and Village Industries Commission) and runs through 2025–26 under the 15th Finance Commission cycle.
📊 PMEGP Scale as of 2024–25
Over 10.18 lakh micro-enterprises have been set up since inception. Total loans sanctioned: ₹73,348 crore. Total Margin Money subsidy disbursed: ₹27,166 crore.
Source: PIB Press Release, KVIC, June 2025
PMEGP Subsidy Rate 2025–26: Official Rate Table
The following subsidy matrix is directly sourced from the Revised PMEGP Scheme Guidelines issued by the Ministry of MSME (December 2023), applicable for 2025–26:
| Category of Beneficiary | Beneficiary’s Own Contribution | Urban Area Subsidy | Rural Area Subsidy |
|---|---|---|---|
| General Category Open category / unreserved individuals |
10% | 15% | 25% |
| Special Category SC · ST · OBC · Women · Minorities · Ex-Servicemen · Transgender · Differently-abled · NER · Aspirational Districts · Hill & Border Areas |
5% | 25% | 35% |
Source: Ministry of MSME, Revised PMEGP Scheme Guidelines, O.M. No. PMEGP/UdhyamReg./01/2023, dated 07.12.2023
The remaining project cost — after your own contribution and the government subsidy — is financed by the bank as a term loan. Banks sanction 90% of project cost for General category and 95% for Special category beneficiaries.
The Three Subsidy Tiers — Who Gets What
Tier 1
15%
General category applicants setting up a unit in an urban area. Lowest subsidy, but still means 1-in-7 rupees of your project is free government money.
Tier 2
25%
Two paths to 25%: General category in rural area OR Special category in urban area. A full quarter of your project cost, covered.
Tier 3 — Maximum
35%
Special category applicants (Women, SC/ST/OBC, Minorities, Ex-Servicemen, NER, Hill/Border areas) with a unit in a rural area.
Rural vs Urban — How is this decided? Any area classified as a village per the revenue record of the State is rural, regardless of population. Areas with population up to 20,000 also qualify as rural even if classified as a town. Cities and municipal towns above that threshold are urban. District Industries Centres (DICs) make the final determination for your unit’s location.
Maximum Project Cost Limits 2025–26
Your subsidy is calculated on the project cost — but there is a cap on how much cost qualifies for the subsidy. The revised PMEGP guidelines (2023) set the following limits:
Manufacturing Sector
₹50 Lakh
Maximum eligible project cost
Max subsidy (35%): ₹17.5 lakh | Min (15%): ₹7.5 lakh
Business / Service Sector
₹20 Lakh
Maximum eligible project cost
Max subsidy (35%): ₹7 lakh | Min (15%): ₹3 lakh
⚠️ Important: Old Limits vs New Limits
Some older sources and KVIC FAQs still show ₹25 lakh (manufacturing) and ₹10 lakh (service) — these are outdated figures from the pre-2021 era. The revised PMEGP guidelines effective from 2021–22 onwards increased limits to ₹50 lakh (manufacturing) and ₹20 lakh (service/business). Always verify with the implementing agency (KVIC/DIC) before applying.
If your total project cost exceeds these limits, the bank can still finance the balance amount — but the subsidy only applies up to the capped limit. For example, a ₹70 lakh manufacturing project would receive subsidy only on the ₹50 lakh portion.
Calculate Your Exact Subsidy Amount
Enter your category, location, sector, and project cost to get your exact Margin Money amount in seconds — no guesswork, no approximations.
Who Qualifies as Special Category?
This is the category that unlocks 25% (urban) or 35% (rural) subsidy. As per the revised PMEGP guidelines, the following groups qualify as Special Category:
💡 Women Entrepreneurs: PMEGP Subsidy Rate
Women applicants qualify as Special Category regardless of caste or community. This means a woman entrepreneur in an urban area gets 25% subsidy, and in a rural area gets 35% subsidy. The beneficiary’s own contribution is only 5% of the project cost. This makes PMEGP one of India’s most financially favourable schemes for women-led enterprises.
PMEGP Eligibility Criteria 2025–26
| Criteria | Requirement | Eligible? |
|---|---|---|
| Age | 18 years and above. No upper age limit. | ✔ Any adult |
| Income ceiling | No income ceiling. Anyone can apply regardless of annual income. | ✔ No restriction |
| Education | Minimum 8th standard pass — only for projects above ₹10 lakh (Manufacturing) or above ₹5 lakh (Business/Service). | ✔ 8th pass for larger projects |
| Project type | New units only. Existing enterprises or units that already received government subsidy are not eligible. | ✗ No existing units |
| Land cost | Cost of land cannot be included in the project cost. | ✗ Land excluded |
| Udyam Registration | Mandatory Udyam registration before physical verification and Margin Money adjustment (as per Dec 2023 amendment). | ✔ Required before disbursal |
| Family rule | Only one person per family (self and spouse) can receive PMEGP assistance. | ✗ One per family |
| EDP Training | Entrepreneurship Development Programme (EDP) training of at least 10 days is mandatory before loan disbursal. | ✔ Mandatory |
How Is the Margin Money Subsidy Actually Paid?
This is a point that confuses most applicants. The subsidy is not given directly as cash in your hand when your loan is approved. Here is how it actually works:
In effect: For 3 years, you repay the loan as if there is no subsidy. After verification, the subsidy amount is knocked off your principal. This is why your EMI in the first 3 years will be on the full loan amount — plan your cash flows accordingly.
Second PMEGP Loan: Upgradation for Existing Units
Existing PMEGP, REGP, or Mudra units that have successfully completed the 3-year lock-in period can apply for a second loan under PMEGP for upgrading their enterprise:
| Parameter | Manufacturing Sector | Business / Service Sector |
|---|---|---|
| Max project cost | ₹1.00 Crore | ₹25 Lakh |
| Subsidy rate | 15% (20% for NER & Hill States) | 15% (20% for NER & Hill States) |
| Own contribution | 10% | 10% |
| Max subsidy | ₹15 lakh (₹20 lakh for NER/Hill) | ₹3.75 lakh (₹5 lakh for NER/Hill) |
Complete PMEGP Subsidy Summary 2025–26
| Parameter | Details |
|---|---|
| Implementing agency | KVIC (national), KVIB & DIC (state level) |
| Scheme duration | 2021–22 to 2025–26 (15th Finance Commission cycle) |
| Max project cost (Manufacturing) | ₹50 lakh |
| Max project cost (Service/Business) | ₹20 lakh |
| Subsidy: General + Urban | 15% of project cost |
| Subsidy: General + Rural | 25% of project cost |
| Subsidy: Special + Urban | 25% of project cost |
| Subsidy: Special + Rural | 35% of project cost |
| Own contribution (General) | 10% of project cost |
| Own contribution (Special) | 5% of project cost |
| Bank finance | 90% (General) / 95% (Special) of project cost |
| Subsidy lock-in period | 3 years |
| Repayment tenure | 3–7 years (after initial moratorium) |
| Interest rate | Normal bank interest rate (no concession) |
| EDP training required | Yes — minimum 10 days before loan disbursal |
| Udyam registration required | Yes — before physical verification & subsidy adjustment |
| Apply online | kviconline.gov.in/pmegpeportal |
Frequently Asked Questions
Answers to the most searched PMEGP subsidy questions — including questions in Hindi (हिंदी में जवाब).
PMEGP में subsidy कितना मिलता है? (PMEGP me subsidy kitna milta hai?) Hindi
PMEGP में subsidy 15% से 35% तक मिलती है। यह आपकी category और location पर depend करता है: General category + Urban area = 15%, General + Rural = 25%, Special category (SC/ST/OBC/महिला/अल्पसंख्यक) + Urban = 25%, Special + Rural = 35% (सबसे अधिक)। Manufacturing sector में ₹50 लाख और Service sector में ₹20 लाख तक की project cost पर subsidy मिलती है।
What is the PMEGP maximum project cost limit for manufacturing in 2025–26?
The maximum project cost limit for manufacturing units under PMEGP in 2025–26 is ₹50 lakh (as per the revised PMEGP guidelines effective from 2021–22). The maximum for Business/Service sector is ₹20 lakh. Note: Some older KVIC FAQ pages still show ₹25 lakh (manufacturing) and ₹10 lakh (service) — these figures are outdated. The current official limits are ₹50 lakh and ₹20 lakh respectively.
What is the PMEGP subsidy rate for women in urban areas 2025–26?
Women applicants qualify as Special Category under PMEGP regardless of caste. A woman setting up a unit in an urban area gets 25% subsidy on the project cost. A woman in a rural area gets 35% subsidy — the maximum available under the scheme. Her own contribution is only 5% of the project cost (vs 10% for General category). This applies to Manufacturing (up to ₹50 lakh) and Service units (up to ₹20 lakh).
PMEGP subsidy rate 15% 25% 35% — what are the exact categories?
15% subsidy: General category applicants in urban areas (own contribution: 10%). 25% subsidy: Either General category in rural areas, OR Special category (SC/ST/OBC/Women/Minorities/Ex-Servicemen/Differently-abled/NER/Aspirational Districts/Hill & Border Areas) in urban areas (own contribution: 5%). 35% subsidy: Special category applicants in rural areas (own contribution: 5%). These rates are for new units only, as per official KVIC/MoMSME guidelines.
Is PMEGP subsidy given directly to the beneficiary?
No. The PMEGP Margin Money subsidy is not handed over as direct cash. KVIC routes it to the financing bank, which holds it in a Term Deposit Receipt (TDR) for 3 years. After the 3-year lock-in period and successful physical verification of your unit (plus Udyam registration completion), the subsidy is adjusted against your outstanding loan — effectively reducing the principal you need to repay.
पीएमईजीपी योजना क्या है? (PMEGP Yojana kya hai?) Hindi
PMEGP (Prime Minister’s Employment Generation Programme) भारत सरकार की एक Credit-Linked Subsidy Scheme है जो Ministry of MSME द्वारा चलाई जाती है। इसका उद्देश्य ग्रामीण और शहरी क्षेत्रों में नए सूक्ष्म उद्यम (Micro Enterprises) स्थापित करने में मदद करना है। इस योजना में सरकार project cost का 15% से 35% तक Margin Money (Subsidy) देती है। Manufacturing sector में ₹50 लाख तक और Service sector में ₹20 लाख तक के प्रोजेक्ट पर यह सब्सिडी मिलती है। KVIC (Khadi and Village Industries Commission) इस योजना का National Nodal Agency है।
What is the PMEGP subsidy percentage for manufacturing in rural areas in India?
For a manufacturing unit in a rural area: General category applicants receive 25% subsidy on project cost (up to ₹50 lakh). Special category applicants (SC/ST/OBC/Women/Minorities etc.) receive 35% subsidy — the highest available under PMEGP. Working capital cannot exceed 40% of total project cost for manufacturing units. Apply via the KVIC PMEGP e-portal at kviconline.gov.in.
Can I use a PMEGP calculator to find my exact subsidy amount?
Yes. MSMEGyan’s free PMEGP Subsidy Calculator lets you enter your category (General/Special), project location (Urban/Rural), sector (Manufacturing/Service), and project cost — and instantly shows your exact Margin Money subsidy amount in rupees, your own contribution required, and the bank loan component. No registration needed.
