PMEGP Loan Calculator
Work out your PMEGP subsidy, own contribution, bank loan and EMI in seconds. Results follow current PMEGP rules and are indicative.
| Your own contribution | |
| Bank loan sanctioned | |
| Subsidy held as 3-year TDR | |
| Net loan you repay | |
| Monthly EMI (on net loan) | |
| Total interest |
This PMEGP loan calculator shows your government subsidy, your own contribution, the bank loan and the EMI on the loan you actually repay. Choose your unit type, category and location above, then enter the project cost. The result updates instantly using the current PMEGP rules.
How to Use the PMEGP Loan Calculator
- Choose the unit typePick manufacturing or service/business. The cost limit and education rule depend on this.
- Select category and locationSpecial category applicants and rural units get a higher subsidy.
- Enter the project costAdd machinery, building or shed and one cycle of working capital. Leave out land.
- Add rate and tenureUse the interest rate and repayment period from your bank. Read the subsidy, net loan and EMI.
PMEGP Subsidy Rates and Own Contribution
PMEGP gives a one-time subsidy, called margin money, on new units. The rate depends on who you are and where the unit is located:
| Applicant category | Own contribution | Subsidy (urban) | Subsidy (rural) |
|---|---|---|---|
| General | 10% | 15% | 25% |
| Special category | 5% | 25% | 35% |
Special category includes SC, ST, OBC, minorities, women, ex-servicemen, transgender persons, persons with disabilities, and units in the North East, hill and border areas and aspirational districts.
PMEGP Project Cost Limits
- Manufacturing: up to ₹50 lakh
- Service or business: up to ₹20 lakh
- Land is not counted in the project cost.
- Projects above ₹10 lakh (manufacturing) or ₹5 lakh (service) need the applicant to have passed Class VIII.
How the PMEGP Loan Calculator Works
First, the calculator takes your own contribution from the project cost; the bank sanctions the rest as a loan. Next, it works out the subsidy at your rate. The bank keeps this subsidy as a three-year term deposit (TDR) in your name, and it charges no interest on the loan amount equal to that deposit. Therefore, the calculator works out your EMI on the net loan, which is the bank loan minus the subsidy.
Worked example
A woman entrepreneur sets up a ₹10 lakh manufacturing unit in a rural area. Her own contribution is 5%, or ₹50,000. The bank sanctions ₹9,50,000. Her subsidy is 35%, or ₹3,50,000, held as a TDR. As a result, her net loan is ₹6,00,000. At 11% for 5 years, the EMI is about ₹13,045, and total interest is about ₹1,82,727.
Rates and limits on this page follow current PMEGP guidelines. Always confirm the latest rules on the official PMEGP e-portal before you apply.
Second Loan for Upgrading a PMEGP Unit
Successful PMEGP, REGP and Mudra units can apply for a second loan to expand. The owner puts in 10%, and the subsidy is 15% (20% in the North East and hill states). However, the unit must have a good repayment record on its first loan.
Documents Needed for a PMEGP Loan
- Aadhaar card and PAN card of the applicant
- Detailed project report with cost estimates and supplier quotations
- Caste, minority or special category certificate, if you claim a higher subsidy
- Education certificate for projects above ₹10 lakh (manufacturing) or ₹5 lakh (service)
- Rural area certificate, if the unit is in a village
- EDP training certificate, completed after the loan is sanctioned
How to Apply for a PMEGP Loan
- Apply onlineFill in the application on the PMEGP e-portal and upload your project report.
- Task force interviewThe district agency (KVIC, KVIB or DIC) reviews your proposal and forwards it to a bank.
- Bank sanctionThe bank appraises the project and sanctions the loan.
- EDP trainingComplete the short entrepreneurship training before the loan is released.
- Subsidy releaseThe subsidy is credited to the bank and held as a three-year TDR in your name.
As a result, a complete project report and correct documents usually make the biggest difference to how fast your file moves.
Next Steps After Using the Calculator
Banks ask for a detailed project report with every PMEGP application. Build one in minutes with our free project report maker, or browse ready project reports. In addition, compare PMEGP with Mudra in our business loan scheme guides, and check smaller loans with the Mudra loan EMI calculator.
Frequently Asked Questions
How is the PMEGP subsidy calculated?
The subsidy is a fixed share of the project cost. General applicants get 15% in urban areas and 25% in rural areas. Special category applicants get 25% in urban areas and 35% in rural areas.
What is the maximum project cost under PMEGP?
The limit is ₹50 lakh for manufacturing units and ₹20 lakh for service and business units. Land cost is not part of the project cost.
Do I pay interest on the PMEGP subsidy amount?
No. The subsidy is kept by the bank as a three-year term deposit in your name, and no interest is charged on the loan amount equal to that deposit. After the lock-in, the subsidy is adjusted against your loan.
How much own contribution is needed for PMEGP?
General category applicants put in 10% of the project cost. Special category applicants put in 5%. The bank finances the rest.
What is the repayment period for a PMEGP loan?
PMEGP loans are usually repaid over 3 to 7 years after an initial moratorium set by the bank.
Who is eligible for a PMEGP loan?
Any individual above 18 years can apply for a new unit. For projects above ₹10 lakh in manufacturing or ₹5 lakh in service, the applicant must have passed at least Class VIII.
Business Reports is an independent information website. We are not affiliated with, endorsed by or acting for any government department, bank, NBFC, KVIC, NABARD, SIDBI or MUDRA, and we do not provide loans or process applications. Figures are indicative; confirm details on official portals or with your bank. Read our disclaimer and advertising disclosure.