Prime Minister's Employment Generation Programme
Ministry of MSME, implemented by Khadi and Village Industries Commission
A credit-linked subsidy for individuals setting up a new non-farm micro enterprise. A bank lends most of the project cost and the government pays part of it as margin money subsidy. The rate depends on rural or urban location and applicant category. It targets self-employment, mostly in rural areas, rather than tech startups.
What you can get
Subsidy of 15% to 35% of project cost, on projects up to ₹50 lakh in manufacturing and ₹20 lakh in services
Do you repay it?
See official page
Type
Subsidy
Where
All of India
Current status
The approval on record covers 2021-22 to 2025-26. A PIB release dated 28 October 2026 shows subsidy still being released in FY 2026-27, but no notice approving a new term was found. The KVIC portal could not be opened in our check.
Who can apply
- Individual above 18, with no income ceiling
- New project only, not an existing unit or one that has taken other government subsidy
- At least Class VIII pass for projects above ₹10 lakh in manufacturing or ₹5 lakh in services
- Own contribution of 10%, or 5% for special categories
How to apply
- 1Apply online on the KVIC PMEGP portal
- 2Your application goes to a bank for loan sanction
- 3Subsidy is released once the bank has sanctioned the project
The catch
You still take a bank loan and repay it, and only part is subsidised. It suits small local units more than software products. Confirm with KVIC that new applications are being processed, since the formal term has ended.
We read this on the official page on 4 November 2026. Rules and dates change, so confirm there before you apply. Founders Wing is not connected to this scheme, does not help with applications and never charges for access to it.