Subsidy at a glance
| PMEGP | CMEGP (Maharashtra) | |
|---|---|---|
| Maximum project cost | ₹50 lakh manufacturing, ₹20 lakh service | ₹50 lakh manufacturing, ₹20 lakh service and agri-based |
| Margin money subsidy | 15–35% by category and urban / rural location | 15–35% by category and urban / rural location |
| Special category (women, SC/ST and others) | 25% urban, 35% rural | 25% urban, 35% rural |
| Own contribution | 5–10% of project cost | 5–10% of project cost |
| Implemented by | KVIC, KVIB and District Industries Centres | District Industries Centre |
| Portal | kviconline.gov.in/pmegpeportal | maha-cmegp.gov.in |
Land is not counted in project cost. The margin money is held and adjusted against the loan after the lock-in period, not paid upfront. A second PMEGP loan for upgradation is available to successful units.
What's included
- Scheme choice: PMEGP or CMEGP (only one margin money scheme can be used)
- Bankable detailed project report with costing and repayment schedule
- Online application and document upload
- Preparation for the task force / DIC interview
- Bank follow-up until sanction and EDP training guidance
- Margin money adjustment follow-up after the lock-in period
Documents required
- Aadhaar, PAN, photograph and proof of address
- Age and education proof; caste or special category certificate if claimed
- Rural / urban location proof and rent agreement or ownership papers
- Quotations for machinery and equipment
- Domicile certificate (for CMEGP)
Frequently asked questions
Can I apply for both PMEGP and CMEGP?
No. Choose one margin money scheme. PMEGP also does not accept units that already received a subsidy under another government scheme, and generally only one person per family can benefit.
When is the subsidy actually received?
The margin money is released to the bank and kept against your loan. It is adjusted only after the lock-in period of successful operation, so plan your cash flow on the full loan.
Is an existing business eligible?
The first PMEGP loan is for new micro enterprises. Existing PMEGP, REGP or MUDRA units with a good repayment record can apply for the second loan for upgradation.
Does the scheme fix the loan interest rate?
No. The bank sets the interest rate as per its own policy. The subsidy reduces the loan you repay, not the rate.