PMEGP supports new units with projects up to ₹50 lakh

Prime Minister's Employment Generation Programme (PMEGP) gives eligible applicants a bank loan with a government margin-money subsidy for new non-farm micro-enterprises. Project cost limits are ₹50 lakh for manufacturing and ₹20 lakh for business or service activities, according to IMPRI's 2026 review.

Applicants must be over 18, with no income ceiling. For projects above ₹10 lakh in manufacturing or ₹5 lakh in business or service activities, applicants must have passed Class VIII. Projects must include capital expenditure; existing units that received certain government subsidies are generally excluded.

General-category applicants contribute 10%; the subsidy is 15% in urban areas and 25% in rural areas. Special-category applicants contribute 5%, with subsidy rates of 25% in urban areas and 35% in rural areas.