Programme guide
A bank-linked margin-money subsidy for new manufacturing and service units. often strongest for a first formal enterprise.
Prime Minister’s Employment Generation Programme is a bank-linked route for new micro enterprises. Rather than handing an applicant cash at the beginning, it places approved margin-money support against a bank-financed project. The entrepreneur brings the required contribution and repays the loan according to the bank’s terms.
The published subsidy rate has varied by category and by rural or urban location. Special-category applicants. which can include women, SC/ST, OBC, minorities, persons with disabilities, ex-servicemen, and others named in the current guidelines. have historically had a higher margin-money rate. Project ceilings also differ for manufacturing and service activities.
PMEGP is generally for a genuinely new unit, not a simple expansion of an existing business, and a person cannot claim two government capital subsidies for the same project cost. Entrepreneurship Development Programme training, bank appraisal, bills, and an operating lock-in period are all part of the route. A later second loan may be possible for a well-performing eligible unit, subject to the current programme rules.
Use the official PMEGP portal and ask the KVIC, Khadi Board, or District Industries Centre which implementing route applies locally. Before filing, ask a bank whether the monthly repayment is realistic for your project. A sanction depends on both programme whether you may qualify and a bank’s credit decision.