About the PMEGP Subsidy
This PMEGP subsidy calculator estimates the margin-money subsidy available under the Prime Minister's Employment Generation Programme. Enter your project cost and choose the sector, the location of the unit and your category, and the tool splits the project into three parts: the government subsidy, your own contribution and the portion to be financed by the bank.
It is intended for first-time entrepreneurs, artisans, self-help groups and unemployed youth planning a new micro-enterprise in manufacturing or services, and for the consultants who prepare their project reports. Seeing the three figures side by side helps you judge how much money you must arrange yourself before you approach KVIC, the District Industries Centre or the bank.
Four inputs drive the result. The tool applies a subsidy of 25% for general-category units in rural areas and 15% in urban areas, rising to 35% and 25% for special categories. Own contribution is 10% for general and 5% for special categories. Project cost is capped at ₹50 lakh for manufacturing and ₹20 lakh for services.
How to use it
- 1Enter the total project cost in rupees.
- 2Choose the sector: manufacturing (cap ₹50 lakh) or services (cap ₹20 lakh).
- 3Select whether the unit will be in a rural or an urban area.
- 4Choose your category: general, or special (SC, ST, OBC, women, minorities, differently abled, North-Eastern Region and similar).
- 5Read the subsidy, your own contribution and the bank loan portion.
How this is calculated
Subsidy = project cost × subsidy rate. Own contribution = project cost × own-contribution rate. Bank loan portion = project cost − subsidy − own contribution. Subsidy rate: rural 25% (general) or 35% (special); urban 15% (general) or 25% (special). Own contribution: 10% (general) or 5% (special). No figure is shown if the project cost exceeds ₹50 lakh (manufacturing) or ₹20 lakh (services).
Frequently asked questions
How much subsidy can I get under PMEGP?
The calculator uses 25% of project cost for general-category units in rural areas and 15% in urban areas. For special categories the rates are 35% rural and 25% urban. Subsidy rates and cost ceilings are fixed by the government and revised from time to time, so verify them on the KVIC PMEGP e-portal before you apply.
What is the maximum project cost allowed under PMEGP?
The tool caps the project cost at ₹50 lakh for manufacturing units and ₹20 lakh for service units. If you enter a higher amount it shows a warning instead of a subsidy figure. For larger projects, consider restructuring the cost or exploring state schemes and other credit routes. Confirm the current ceilings on the official portal.
Who falls under the special category in this PMEGP subsidy calculator?
The special category covers SC, ST, OBC, women, minorities, physically handicapped applicants, units in the North-Eastern Region and similar groups named in the scheme. Special-category applicants get a higher subsidy rate and contribute only 5% of the project cost. Check the scheme guidelines for the complete, current list.
How much of the project cost must I bring myself?
The tool assumes an own contribution of 10% of project cost for general-category applicants and 5% for special-category applicants. The rest is financed by the bank, and the subsidy is later adjusted against that loan. Keep your contribution ready in your bank account, because lenders normally want to see it before disbursal.
Is the PMEGP subsidy paid to me in cash?
No. As the tool notes, the margin-money subsidy follows the entrepreneurship development training and is held with the financing bank under a three-year lock-in before it is adjusted against your loan. It is a grant that you do not repay, provided the unit operates in line with the scheme conditions.
Can an existing business apply for PMEGP?
The calculator is meant for new units: PMEGP margin money is for setting up new micro-enterprises, and units that already exist or have already taken a government subsidy are generally not eligible. An existing business should look at other schemes; the government scheme eligibility checker on this site can suggest options.