Secure Prime Minister's Employment Generation Programme (PMEGP) capital subsidies up to 35% for new manufacturing (up to ₹50L) & service (up to ₹20L) projects.
We coordinate the complete online application, agency liaison with KVIC/DIC, and bank sanction facilitation on your behalf.
Rates vary depending on applicant category (General vs Special) and geographic location (Urban vs Rural).
| Beneficiary Category | Own Contribution | Urban Subsidy Rate | Rural Subsidy Rate | Bank Loan Share |
|---|---|---|---|---|
|
General Category
Standard individual & corporate applicants
|
10% of Project Cost | 15% Margin Money | 25% Margin Money | 75% - 65% |
|
Special Category
SC / ST / OBC / Women / Minorities / Ex-Servicemen / Differently Abled /
NER / Transgenders
|
5% of Project Cost | 25% Margin Money | 35% (Highest Grant) | 70% - 60% |
|
Second Loan for Upgradation
Existing successful PMEGP units expanding capacity
|
10% of Project Cost | 15% (Up to ₹15 Lakhs) | 20% (Up to ₹20 Lakhs) | 75% - 70% (Loan up to ₹1 Cr) |
Key statutory parameters mandated by the Ministry of MSME and KVIC.
Any individual above 18 years of age. For projects costing above ₹10 Lakhs in manufacturing or above ₹5 Lakhs in services, the applicant must possess at least 8th standard pass certificate.
Only newly established units are eligible for initial PMEGP subsidies. Existing operating units cannot claim first-round PMEGP subsidy (though they can apply for the 2nd Upgradation Loan).
Self Help Groups (SHGs), Institutions registered under Societies Registration Act 1860, Production Co-operative Societies, and Charitable Trusts are also eligible.
There is no income ceiling for setting up projects under PMEGP, making it open to aspiring entrepreneurs across all economic strata.
Units engaged in meat/slaughter processing, intoxicants/tobacco, polythene carry bags < 50 microns, or direct farming/crop cultivation cannot be financed under PMEGP.
Mandatory Entrepreneurship Development Programme (EDP) training (online/offline) conducted by KVIC or designated training centers prior to subsidy release.
We manage the full lifecycle from Detailed Project Report drafting to final KVIC subsidy verification.
We draft a detailed, techno-commercially viable DPR including civil works, plant machinery specifications, raw material cycles, and cash flow projections.
We upload the complete dossier onto the official PMEGP e-portal, select the appropriate implementing agency (KVIC/KVIB/DIC), and link the financing bank branch.
We assist in tracking and clearing the interview/verification process by the District Task Force Committee (DLTFC) headed by the District Magistrate/Collector.
Following bank loan sanction, we lodge the Margin Money claim on the KVIC portal, ensure subsidy release into the 3-year lock-in TDR, and coordinate joint physical inspection.
REXERA is an independent consultancy. We are not KVIC, KVIB, or the District Industries Centre (DIC). PMEGP margin money subsidies are subject to the approval of the District Level Task Force Committee (DLTFC), financing bank sanction, and KVIC physical inspection compliance.
Statutory qualification norms defined by Khadi and Village Industries Commission (KVIC).
REXERA coordinates DPR preparation, DLTFC clearance, and KVIC physical verification.
REXERA structures and audits every financial file before submission to ensure zero rejection by KVIC, DIC, and bank credit underwriting teams.
Aadhaar Card, PAN Card, passport-size photographs, and minimum 8th Standard pass certificate / marksheet (for projects > ₹10L Mfg / ₹5L Service).
Caste certificate (SC/ST/OBC), Minority certificate, Ex-Servicemen discharge book, or Disability certificate (required to claim up to 35% subsidy rate).
Institutional Detailed Project Report including techno-economic feasibility, machinery layout, working capital cycle, and 5-year cash flows (formulated by REXERA).
Signed proforma invoices/quotations from certified equipment manufacturers, civil engineering cost estimates, and electrical power load approvals.
Registered land title deed, NA order, registered long-term lease deed (≥ 7 years), Gram Panchayat / Municipal trade NOC, and site layout plan.
KVIC/KVIB/DIC 10-day online or offline Entrepreneurship Development Training certificate (REXERA coordinates immediate enrollment and certification).
Essential clarity regarding government margin money releases, lock-in terms, and eligibility rules.
Once your term loan is sanctioned and first installment disbursed, the nodal agency (KVIC) transfers the approved margin money subsidy directly to your financing bank. The bank places this amount in a Term Deposit Receipt (TDR) in your name for 3 years with zero interest charged on this portion.
After a successful physical verification inspection at the end of 3 years confirming active production, the TDR is adjusted directly against your term loan principal balance.
Initial PMEGP subsidy is strictly reserved for new greenfield projects. However, if your existing enterprise originally availed a PMEGP loan and repaid it successfully with clean track record, you can apply for the 2nd Upgradation Loan up to ₹1.00 Crore with an additional 15% to 20% subsidy.
Under RBI and MoMSME guidelines, no collateral or third-party guarantee is required for loans up to ₹10 Lakhs. For projects above ₹10 Lakhs up to ₹50 Lakhs, the entire loan is covered under the CGTMSE credit guarantee scheme with zero mortgage requirements.
Any project location falling under a Gram Panchayat or revenue village is classified as Rural, qualifying for the higher subsidy rates (25% for General, 35% for Special Category). Municipal corporation and council zones are classified as Urban (15% General, 25% Special Category).
REXERA acts as your complete statutory and banking architect. We prepare a flawless, bank-compliant DPR with CMA data, handle online portal submission across DIC/KVIC, represent your file at the District Task Force (DLTFC) clearance stage, and liaise with bank credit officers to ensure speedy sanction without file rejections.
Let REXERA draft your PMEGP Detailed Project Report (DPR) and fast-track bank approval.
Avail 15% to 35% government capital subsidy on new business projects.
Our advisory team will reach out to you shortly.