Fund under PMEGP Scheme will be available in two heads.
| Categories of beneficiaries under PMEGP | Beneficiary’s own contribution (of project cost) | Rate of Subsidy | |
|---|---|---|---|
| Urban | Rural | ||
| General Category | 10% | 15% | 25% |
| Special (SC/ST/OBC/Minorities/Women, Ex-Servicemen, Physically handicapped, NER, Hill & Border areas) | 5% | 25% | 35% |
Note:
- The maximum cost of the project/unit admissible for Margin Money subsidy under Manufacturing sector is Rs. 50 lakhs.
- The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector is Rs. 20 lakhs.
- The balance amount (excluding own contribution) will be provided by Banks.
- If total project cost exceeds Rs. 50 lakhs or 20 lakhs for Manufacturing/Service sectors, balance may be provided by banks without any Government subsidy.
Eligibility for Margin Money Subsidy:
- Individuals above 18 years of age.
- Beneficiaries should possess at least 8th standard pass qualification.
- Assistance is only for new units.
- Existing units or units that have already availed Government subsidy are not eligible.
- Only one person from a family (self + spouse) is eligible.
Loan for Upgradation of Existing PMEGP Units:
(Existing beneficiaries can avail additional loan for modernizing/upgrading their units.)
| Categories of beneficiaries (for upgradation) | Beneficiary’s contribution (of project cost) | Rate of Subsidy (of project cost) |
|---|---|---|
| All Categories | 10% | 15% (20% in NER & Hill Station) |
Note:
- Max project cost admissible for upgradation: Manufacturing Rs. 1 crore (max subsidy Rs. 15 lakh, 20 lakh for NER/Hill), Business Rs. 25 lakh (max subsidy Rs. 3.75 lakh, 5 lakh for NER/Hill).
- Balance amount provided by banks.
- If project cost exceeds these limits, banks provide balance without government subsidy.
Eligibility for Upgradation:
- Margin Money (subsidy) claimed under PMEGP must be successfully adjusted after 3-year lock-in period.
- First loan under PMEGP/REGP/MUDRA must be successfully repaid.
