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PMEGP Loan Assistance | Prime Minister Employment Generation Programme | CapitalBox
PMEGP · MINISTRY OF MSME · GOVERNMENT OF INDIA

Start Your Own Business With The PMEGP Scheme

The Prime Minister's Employment Generation Programme (PMEGP) is a Government of India credit-linked subsidy scheme that helps individuals set up new micro enterprises in the manufacturing and service sectors. CapitalBox assists you end-to-end — from eligibility check to project report and application filing.

Apply with a one-time ₹1,100 service activation fee
₹50L
Max Manufacturing
₹20L
Max Service Sector
35%
Max Subsidy
Govt.
Backed Scheme
Verified
Government Of India · Ministry Of MSME / KVIC
PMEGP Sanction Summary
Project Cost₹20,00,000
CategoryGeneral · Urban
Bank Finance90%
Margin Money Subsidy15%
Indicative figures · Facilitated by CapitalBox
⚡ KVIC Linked Scheme
About The Scheme

Objective & Scope Of PMEGP

A central sector credit-linked subsidy scheme administered through KVIC, State KVIBs and District Industries Centres (DICs), implemented by Public Sector Banks, RRBs and select Private Banks.

Objective

  • Generate employment opportunities in rural as well as urban areas through setting up of new self-employment ventures.
  • Provide continuous and sustainable employment to traditional artisans and unemployed youth, helping arrest migration from rural to urban areas.

Scope

  • Applicable to all technically and economically viable projects in rural and urban areas, under the micro enterprises sector.
  • Covers new units only — assistance is not available for upgradation or expansion of existing businesses.
  • One person per family is eligible for financial assistance under the scheme.
Funding Limits

Maximum Project Cost Coverage

The maximum cost of the project admissible for Margin Money subsidy depends on the sector and whether it is a first loan or an upgradation loan.

First Loan · New Project

Manufacturing Sector

Up To ₹50 Lakh

Service / Business Sector — Up To ₹20 Lakh

2nd Loan · Upgradation

PMEGP / REGP / MUDRA Units

Up To ₹1 Crore

Service / Business Sector — Up To ₹25 Lakh

Note: Existing units already availed of government subsidy under PMRY, REGP or any other Central/State scheme are not eligible for a fresh loan under PMEGP.
Subsidy Structure

Subsidy Entitlement & Bank Finance

Subsidy from KVIC and bank finance depend on the category of the beneficiary and the location of the unit.

Beneficiary Category Bank Finance Subsidy — Urban Area Subsidy — Rural Area Promoter's Contribution
General Category 90% 15% 25% 10%
Special Category
(SC / ST / OBC / Minority / Women / Ex-Servicemen / PwD / NER / Hill & Border Areas)
95% 25% 35% 5%
Eligibility

Who Can Apply Under PMEGP

Basic eligibility conditions for individuals and institutions applying under the scheme.

Selection of Beneficiaries: Applicants are identified and selected at the district level by a Task Force consisting of representatives from KVIC / State KVIB / State DICs and Banks, headed by the District Magistrate / Deputy Commissioner / Collector concerned.
Security & Collateral

Security Norms Under PMEGP

PMEGP loans are designed to be largely collateral-free for eligible units.

Documents Needed

Keep These Documents Handy

Having these ready in advance helps speed up your PMEGP application.

Application Journey

How CapitalBox Takes You Through PMEGP

A structured, guided process from initial inquiry to subsidy processing.

Service Charges

Transparent Pricing For PMEGP Facilitation

CapitalBox follows a simple two-step consultancy model — pay to activate the service, and pay the success fee only once your loan is actually sanctioned and disbursed.

Step 01 · Initiate

Service Activation Fee

₹1,100one-time

A professional consultancy fee charged to formally initiate the PMEGP application facilitation process. It is not a loan sanction or subsidy approval charge.

  • Eligibility assessment under PMEGP guidelines
  • Project report & documentation review
  • GST-invoiced, fully compliant under Indian law
Step 02 · On Disbursement

Success Fee

₹30,000only on success

A performance-based fee that becomes payable only when your PMEGP loan is approved and the sanctioned bank finance is disbursed to your account.

  • Bank & KVIC / DIC coordination support
  • Documentation management until disbursement
  • No charge if the application isn't disbursed
Important Information: CapitalBox is not the Khadi and Village Industries Commission (KVIC), a Bank, NBFC or any Government Authority. These charges are for consultancy, documentation and facilitation services only and do not represent a guarantee of loan approval or subsidy sanction. Final eligibility, approval, sanction and disbursement remain solely at the discretion of the Task Force, concerned bank and government authorities, as per applicable PMEGP guidelines.
Have Questions?

Frequently Asked Questions

Common questions about the PMEGP scheme and how CapitalBox helps.

Ready To Launch Your Enterprise Under PMEGP?

Check your eligibility, get your project report prepared and let CapitalBox guide your PMEGP application from start to finish.

Check PMEGP Eligibility ↗

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