19 Jan 2026
PMEGP in plain words
The promoter’s 5–10%, the subsidy, the bank loan — and who this scheme is actually for.
PMEGP is for new micro enterprises, not for refinancing an existing factory. KVIC is the national nodal agency. Manufacturing projects go up to ₹25 lakh, service up to ₹10 lakh.
The subsidy is 15–35% depending on category and location. The bank funds the rest as a term loan. The project report has to match what the unit will really do. Eligibility and sanction rest with the scheme authority and the bank.