The Prime Minister's Employment Generation Programme gives a one-time subsidy of 15% to 35% of the project cost on a bank loan for a new manufacturing or service unit. SABloan helps you prepare the project report, apply online and get the loan sanctioned by a partner bank.
The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme of the Ministry of MSME, Government of India, run nationally by the Khadi and Village Industries Commission (KVIC). You take a bank loan for a new micro enterprise, and the government gives a margin money subsidy of 15% to 35% of the project cost, depending on your category and whether the unit is in a rural or urban area. In Rajasthan, applications are handled by the KVIC state office, the Rajasthan Khadi & Village Industries Board and the District Industries & Commerce Centre (DIC). Existing PMEGP, REGP and Mudra units with a good track record can also take a second loan for expansion with a further subsidy.
The subsidy is a percentage of the project cost. You put in your own share, and the bank finances the rest.
| Category | Your own share | Subsidy — Urban | Subsidy — Rural |
|---|---|---|---|
| General | 10% of project cost | 15% | 25% |
| Special — SC, ST, OBC, minorities, women, ex-servicemen, persons with disabilities, transgender, border & hill areas | 5% of project cost | 25% | 35% |
| Project limit | New unit (1st loan) | Expansion (2nd loan) |
|---|---|---|
| Manufacturing | Up to ₹50 lakh | Up to ₹1 crore |
| Service / business | Up to ₹20 lakh | Up to ₹25 lakh |
| Subsidy | 15% – 35% | 15% (20% in hill & border areas) |
Rural area means a village, or a town with a population of up to 20,000. The subsidy is kept by the bank in a 3-year deposit and adjusted against your loan after the unit is verified as running.
| Project cost | ₹20,00,000 |
| Her own share (5%) | ₹1,00,000 |
| Bank loan (95%) | ₹19,00,000 |
| PMEGP subsidy (35%) | ₹7,00,000 |
| Loan left to repay after subsidy adjustment | ₹12,00,000 |
A one-time grant that comes off your loan — the highest margin money subsidy among central schemes.
Only 5% (special category) or 10% (general) of the project cost from your side.
Loans are generally covered under the CGTMSE credit guarantee, so collateral is usually not needed.
Grow later with a second loan of up to ₹1 crore and another 15% subsidy.
Entrepreneurship Development Programme training, which can be done online, before the loan is released.
Anyone aged 18 or above can apply. No upper income ceiling.
Not covered: meat processing, tobacco products, liquor, polythene carry bags, crop cultivation and some transport activities (negative list).
Send everything on WhatsApp — we check the file before it goes online.
We help you choose a viable activity and prepare a bankable project report.
Apply on the PMEGP online portal, choosing KVIC, KVIB or DIC as the agency and your preferred bank.
The agency's district committee screens the project and sends it to the bank for sanction.
Complete EDP training, deposit your own share and the bank disburses. The subsidy is credited to the bank.
General category applicants get 15% of the project cost in urban areas and 25% in rural areas. Special category applicants — SC, ST, OBC, minorities, women, ex-servicemen, persons with disabilities and others — get 25% in urban areas and 35% in rural areas.
Up to ₹50 lakh for a manufacturing unit and up to ₹20 lakh for a service unit. For the second loan (expansion), up to ₹1 crore for manufacturing and ₹25 lakh for service.
You must be at least 18. There is no income ceiling. Class 8 pass is needed only for manufacturing projects above ₹10 lakh and service projects above ₹5 lakh.
The subsidy is sent to the bank and kept as a deposit for 3 years. After the unit is verified as running successfully, it is adjusted against your loan.
The first PMEGP loan is only for new units. An existing PMEGP, REGP or Mudra unit that has repaid its first loan on time and made profits can apply for a second loan for expansion.
We help choose the activity, prepare the project report, fill the online application, arrange EDP training and follow up with the agency and the bank. SABloan is a Direct Selling Agent; loan sanction is at the bank's discretion and the subsidy is approved by the implementing agency.
SABloan is a brand of ABFin Advisory Private Limited, acting as a Direct Selling Agent (DSA) for its partner banks; it is not a lender. Loans are sanctioned at the sole discretion of the lender. PMEGP margin money subsidy is approved and released by the implementing agency (KVIC, KVIB or DIC) under the guidelines of the Ministry of MSME, Government of India; SABloan does not approve or release any subsidy. Details shown are a summary of published guidelines and may change — the official guidelines prevail.
Tell us your business idea and project cost on WhatsApp — we'll work out your subsidy and loan amount.
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