To apply online for a PMEGP loan, use the official KVIC PMEGP portal and select the application for a new unit. The scheme combines bank finance with a government margin money subsidy. For new enterprises, the project cost eligible for subsidy is capped at Rs 50 lakh for manufacturing and Rs 20 lakh for business or services. Submission does not guarantee a loan, and the subsidy is subject to scheme conditions.
The Delhi Khadi and Village Industries Board's revised PMEGP rules, checked on 4 November 2026, explain the national framework. KVIC is the national nodal agency under the Ministry of Micro, Small and Medium Enterprises. State implementing agencies and participating banks handle applications and financing. The board page was marked updated on 3 November 2026.
| New unit category | Own contribution | Urban subsidy | Rural subsidy |
|---|---|---|---|
| General | 10% of project cost | 15% | 25% |
| Special category | 5% of project cost | 25% | 35% |
PMEGP loan eligibility: who can apply?
The rules allow individuals above 18 years of age to apply and set no income ceiling. Educational qualifications become relevant above particular project sizes: at least a Class 8 pass is required for manufacturing projects costing more than Rs 10 lakh, and business or service projects costing more than Rs 5 lakh. Applicants should distinguish these education thresholds from the higher overall project limits.
The first assistance route is for new projects specifically sanctioned under PMEGP. Existing units and units that have already received government subsidy under another central or state scheme are excluded from this new unit route. There is a separate upgrading route for eligible existing PMEGP, REGP or MUDRA units. An established business should check that route's conditions instead of presenting itself as a new enterprise.
Only one person from a family can receive assistance for setting up a project under these rules. The central portal's current eligibility text includes the applicant, spouse and unmarried children in the family definition. The special category list includes SC, ST, OBC, minorities, women, former service personnel, persons with disabilities and specified geographical categories. Applicants need the applicable certificate rather than simply choosing a higher subsidy band.
How much subsidy is available under PMEGP?
The subsidy depends on both the beneficiary category and the location of the unit. A general category urban project has a 15% subsidy rate, compared with 25% for a rural project. The corresponding special category rates are 25% and 35%. The project location matters: the rules use revenue records and local administration classifications to distinguish rural and urban areas.
For illustration, an eligible Rs 10 lakh rural project in the general category implies a Rs 1 lakh own contribution and a potential Rs 2.5 lakh margin money subsidy. These are calculations from the published percentages, not a sanction or a cash payment promise. Bank appraisal, eligible project expenditure and the subsidy adjustment rules still determine the outcome.
The project ceiling is also not a promise of that amount in borrowing. Land cost cannot be included in the project cost, and projects with no capital expenditure are ineligible. Eligible workshop or workshed costs have separate conditions. If a bank finances expenditure beyond the scheme's manufacturing or service ceiling, the excess does not qualify for government subsidy under that ceiling.
PMEGP online application documents and status
Begin from the PMEGP link provided by the official implementing agency. The board says online applications are mandatory and separate forms cover new units and eligible expansion or upgrading. Provide the requested identity and project details, choose the appropriate implementing agency, and prepare the documents before making final submission. Check the activity against the scheme's negative list and local restrictions.
The board's document list includes a photograph, project report, caste certificate, special category certificate where applicable, rural area certificate, and education or entrepreneurship development or skill training certificates as relevant. Aadhaar authentication is part of the process. The published rules also describe identification arrangements for applicants awaiting Aadhaar or covered by specified exceptions; the implementing agency should clarify the applicable route.
Saving the application generates access credentials for later use. Final submission produces a unique Application ID, which can be used to track progress. Download or print the acknowledgement and keep it with the project report. A saved draft and a finally submitted application are different stages, so confirm that the acknowledgement exists before assuming the application has reached the agency.
Interest, deadlines and where to get help
The board specifies normal bank interest and a repayment schedule that may range from three to seven years after an initial moratorium prescribed by the lender. It does not give every applicant one fixed concessional interest rate. Ask the bank for the actual borrowing terms and repayment schedule before treating the subsidy percentage as the full cost of finance.
No universal closing date is stated on the scheme page reviewed. Check the current portal and implementing agency for the application window, training requirements and local assistance. The central portal helpdesk lists 022-69168907 for technical issues and 022-26712087 for operational issues. The portal terms state that margin money remains locked for three years. Use the official implementing agency for case specific guidance. No new national benefit increase is established by this page's update date alone.
Related reading: PM SVANidhi loan eligibility and status, flat and reducing interest calculations, and PM Kisan Maandhan eligibility and contributions explain other borrowing and support rules. Their eligibility conditions do not establish entitlement under PMEGP.
