Central scheme
Prime Minister's Employment Generation Programme (PMEGP)
KVIC / KVIB / DIC
- Benefit
- Margin money subsidy — General category: 25% rural / 15% urban (10% own contribution). Special category: 35% rural / 25% urban (5% own contribution).
- Ceiling
- ₹50 lakh manufacturing / ₹20 lakh service. Second-loan upgradation up to ₹1cr / ₹25 lakh.
- Eligibility
- Individuals 18+ (Class VIII pass required only above ₹10 lakh manufacturing / ₹5 lakh service project cost); also SHGs, trusts, societies, production co-operatives. New units only. EDP training mandatory.
- Route
- kviconline.gov.in → DLTFC screening → bank appraisal → EDP → disbursement.
Watch out for
Land cost is excluded from project cost. Margin money is held as a TDR with a 3-year lock-in, and working-capital financing capitalised into project cost is capped at 40% manufacturing / 60% service. Several government mirror sites still publish superseded, lower caps (₹25 lakh / ₹10 lakh) — the ₹50 lakh / ₹20 lakh figures above are corroborated across multiple current sources, but kviconline.gov.in itself was unreachable when last checked — confirm there directly before a large claim.
See what this scheme could be worth for your specific project, checked against the negative list and district classification.
Check eligibility