Margin money support to set up a new unit
PMEGP
01 · What it is
Support for new micro enterprises through a bank loan with a margin money subsidy. It was approved to 31 March 2026. The Ministry's answers in Parliament in August 2026 still describe it as running, but we have not seen the approval for the next five years.
02 · Who should check it
People setting up a new micro unit
03 · What it can support
- Subsidy on project cost through the bank loan
- Higher subsidy and a lower own contribution for rural applicants, Scheduled Tribes and aspirational districts
- Banks may not ask for collateral on loans up to ₹20 lakh
04 · What may be required
- New unit
- Project within the scheme limits
05 · Documents commonly requestedTick what you already have. 0 of 3 ready.
06 · Application route
Apply online through the PMEGP portal, then through the bank.
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