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PMEGP Subsidy Loan

Prime Minister's Employment Generation Programme. Start your own business with **up to 35% Govt Subsidy**.

Overview

Small Factory Owner
For New Units Only

PMEGP (Prime Minister's Employment Generation Programme) is a credit-linked subsidy scheme administered by the Ministry of MSME, Govt of India. It is the best scheme for first-time entrepreneurs setting up a new micro-enterprise.

The unique benefit of PMEGP is that the government provides margin money subsidy (grant) which is directly deposited into your loan account after a lock-in period of 3 years.

Scheme Highlights
  • Loan Limit: ₹50 Lakhs (Mfg) / ₹20 Lakhs (Service).
  • High Subsidy: 25% (Urban) to 35% (Rural) for Special Category.
  • Contribution: Only 5% to 10% own investment required.
  • No Collateral: No security required for loans up to ₹10 Lakhs.

Subsidy Rate Chart

Your subsidy depends on your Social Category and Location:

Category Own Contribution Subsidy (Urban) Subsidy (Rural)
General 10% 15% 25%
Special* 05% 25% 35%

*Special Category includes: SC, ST, OBC, Minorities, Women, Ex-Servicemen, Differently Abled.

Required Documents

  • Aadhaar Card & PAN Card
  • Education Proof (8th Pass Marksheet)
  • Caste Certificate (For Special Category)
  • Rural Area Certificate (For Rural Subsidy)
  • Project Report (DPR)
  • Population Certificate (From Panchayat)
* Note: Education certificate is mandatory only if project cost is above ₹10 Lakhs (Mfg) or ₹5 Lakhs (Service).
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