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Pmegp Eligibility — Calculations & Slabs for FY 2026-27

Check whether your business idea, age, and beneficiary category qualify for a PMEGP subsidy of 15-35% on a project cost up to Rs 25 lakh (manufacturing) or Rs 10 lakh (service).

Last verified: June 2026 | Source: kviconline.gov.in

1. Eligibility Parameters

Frequently Asked Questions (FAQ)

What is the maximum project cost eligible under the PMEGP scheme?

For manufacturing sector projects, the maximum eligible cost is ₹50 Lakh. For service or trading sector projects, the maximum eligible cost is ₹20 Lakh. Higher project sizes can be financed by banks, but the margin money (subsidy) will only be computed based on these ceilings.

Who falls under the 'Special Category' for higher PMEGP subsidies?

Special categories under PMEGP include SC, ST, OBC, Minorities, Women, Ex-servicemen, Differently-abled (PH) individuals, and applicants located in the North Eastern Region (NER), hill areas, or border areas. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

Is Entrepreneurship Development Programme (EDP) training mandatory for PMEGP?

Yes, completing Entrepreneurship Development Programme (EDP) training is mandatory before the release of the subsidy (Margin Money). The duration of training is 2 days for projects up to ₹5 Lakh, and 5-10 days for projects above ₹5 Lakh. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

Can an existing business apply for a PMEGP loan?

No. The standard PMEGP scheme is strictly for setting up new micro-enterprises. However, there is a second-loan scheme for upgrading existing, well-performing PMEGP units with a project cost of up to ₹1 Crore for manufacturing and ₹25 Lakh for services.

Where can I verify the source data for this calculator?

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth

What Does This Calculator Do?

This calculator checks your eligibility for the Prime Minister's Employment Generation Programme (PMEGP) loan, calculates the promoter contribution, government subsidy amount (Margin Money), and the estimated bank loan structure for your project.

How to Use It

  1. Personal Information: Enter your age, category (General/Special), and your highest educational qualification.
  2. Project Details: Choose your business type (Manufacturing or Service), estimate your project cost, and specify if it's a new or existing enterprise.
  3. Training Status: Declare if you have completed or are willing to undergo EDP (Entrepreneurship Development Programme) training.

The Logic Explained Simply

  • The Concept: PMEGP is a credit-linked subsidy scheme to setup new micro-enterprises.
  • Subsidy Rates: The government provides a Margin Money subsidy of 15% (urban) or 25% (rural) for the General category, and 25% (urban) or 35% (rural) for Special categories.
  • Funding Split: The promoter contributes 10% (General) or 5% (Special) of the project cost. The bank provides a loan for the remaining 90% (General) or 95% (Special) of the project cost. The subsidy is adjusted against the loan after a 3-year lock-in.

Real-World Calculation Breakdown

An applicant in a rural area wants to setup a new manufacturing unit costing ₹10,00,000 under the Special category (Women).

  • Promoter Contribution: 5% of ₹10,0,000 = ₹50,000.
  • Government Subsidy (Rural Special): 35% of ₹10,0,000 = ₹3,50,000.
  • Gross Bank Loan portion: 95% of ₹10,0,000 = ₹9,50,000.
  • Net Bank Loan (after 3 years adjustment): ₹9,50,000 - ₹3,50,000 = ₹6,00,000.

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