PMEGP subsidy calculator: margin money by category

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Work out your PMEGP subsidy

Enter the project cost without land. Ask the implementing agency which category you fall in before you apply. The boxes open on an example.

This is

A new unit

A second loan to upgrade

Project cost, without land ₹

Machinery, building work, other capital costs and working capital.

Sector

Manufacturing

Business or service

How the PMEGP subsidy is worked out

Margin money is the government's share of the project cost. It is a grant, and you do not repay it.

The three shares

subsidy = the lower of project cost and the limit × subsidy %

own contribution = project cost × own %

bank loan = project cost − own contribution

Rates for a new unit

PMEGP subsidy and own contribution by category and area
Category	Own	Urban	Rural
General	10%	15%	25%
Special	5%	25%	35%

Project cost limits: ₹50,00,000 in manufacturing and ₹20,00,000 in business or service. For a second loan, ₹1,00,00,000 and ₹25,00,000, with 10% own contribution.

Where the figures come from

Where each figure on this page comes from
Figure	Source	Checked
Subsidy of 15% or 25% for general applicants and 25% or 35% for special categories, urban or rural	PIB press release	02-Oct-2026
Own contribution of 10% for general applicants and 5% for special categories	PMEGP guidelines compendium	02-Oct-2026
Who is in the special category	Ministry of MSME annual report 2025-26	02-Oct-2026
The bank finances the rest of the project cost	PMEGP guidelines compendium	02-Oct-2026
Maximum project cost of ₹50,00,000 in manufacturing and ₹20,00,000 in business or service	Ministry of MSME annual report 2025-26	02-Oct-2026
The subsidy is worked out only up to the maximum project cost	PIB press release	02-Oct-2026
Panchayati Raj areas count as rural, municipal areas as urban	PIB press release	02-Oct-2026
Land is not part of the project cost; existing units do not get the subsidy	PMEGP portal	02-Oct-2026
Exaggerated project cost should not be allowed	PMEGP guidelines compendium	02-Oct-2026
The subsidy is held for three years as a deposit in your name, with no interest on the matching loan	PMEGP guidelines compendium	02-Oct-2026
After three years it is credited to the loan account	PMEGP guidelines	02-Oct-2026
Second loan: up to ₹1,00,00,000 in manufacturing and ₹25,00,000 in service, 15% subsidy or 20% in the North East and hill states	Ministry of MSME annual report 2025-26	02-Oct-2026
Second loan: own contribution of 10%	PMEGP portal	02-Oct-2026
PMEGP is funded in the Union Budget 2026-27	Union Budget 2026-27, demands for grants	02-Oct-2026

Worked example

Worked example: a ₹10,00,000 manufacturing unit

An illustration with round numbers, not an offer: a general-category applicant sets up a manufacturing unit in an urban area.

PMEGP subsidy worked for a general and a woman applicant
Item	General applicant	Woman applicant, special category
Own contribution	10%: ₹1,00,000	5%: ₹50,000
Bank loan	₹9,00,000	₹9,50,000
Subsidy	15%: ₹1,50,000	25%: ₹2,50,000
Loan after the subsidy is credited	₹7,50,000	₹7,00,000

The bank releases the loan once your own contribution and EDP certificate are in place.
The bank claims the margin money, which is held as a three-year deposit in your name.
No interest is paid on that deposit, and none is charged on the matching part of the loan.
After three years the subsidy is credited to your loan account, and what you owe falls by that amount.

So your cash need at the start is your own contribution, not the subsidy. The last row ignores the EMIs you pay meanwhile.

Know the limits

Limits of this calculator

It does not check eligibility. Existing units, units that already took a government subsidy and projects without capital spending do not get it. See PMEGP eligibility.
A project financed jointly by two lenders is not eligible for the subsidy.
The unit must be registered on Udyam and physically verified before the margin money is adjusted.
For the EMI on the bank loan, use the Mudra and PMEGP EMI calculator.

Good to know

Questions and answers

Straight answers on the method, the sources and what the numbers do and do not mean.

How much subsidy does PMEGP give?

For a new unit, 15% of the project cost in urban areas and 25% in rural areas for general applicants, and 25% urban and 35% rural for special categories. The subsidy is worked out on a project cost of up to ₹50,00,000 in manufacturing and ₹20,00,000 in business or service.

How is the PMEGP subsidy calculated?

Multiply the project cost, without land, by your subsidy rate. A general-category applicant with a ₹10,00,000 manufacturing unit in an urban area puts in ₹1,00,000, borrows ₹9,00,000 and gets a subsidy of ₹1,50,000.

How much PMEGP subsidy does a woman entrepreneur get?

Women are in the special category, so the subsidy is 25% in urban areas and 35% in rural areas, and the own contribution is 5%. On the same ₹10,00,000 urban unit, that is ₹2,50,000 of subsidy and ₹50,000 of own contribution.

Is the PMEGP subsidy paid in cash?

No. The bank claims it after releasing the loan, and it is held for three years as a deposit in your name. No interest is charged on the matching part of the loan in that time. After three years it is credited to your loan account, so what you owe falls by that amount.

What is the PMEGP subsidy on a second loan?

Units that repaid an earlier PMEGP, REGP or Mudra loan on time and made a profit for three years can get a second loan for upgrading, with a 15% subsidy, or 20% in the North East and hill states. A ₹20,00,000 manufacturing upgrade gets ₹3,00,000.

Is land included in the PMEGP project cost?

No. Land cost is not part of the project cost, and the guidelines say an exaggerated cost should not be allowed.

Is PMEGP still open in 2026?

On the evidence we read on 02-Oct-2026, yes: the Union Budget 2026-27 funds it and the portal takes new applications. Check the date on any figure you rely on.

Does this calculator affect my CIBIL score?

No. It makes no credit enquiry and asks for no name, phone number or PAN. CIBIL is the credit bureau whose score and report lenders check. Like every page on this site, it uses the analytics described in our Privacy Policy and Cookie policy.

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Sources

How to read these figures

Capnix is not a lender. Rates, amounts and approvals are decided by lenders. Rates shown here are examples, not offers.

Subsidy rates, project cost limits and categories: PIB release on the revised PMEGP guidelines, 30-May-2022, and the Ministry of MSME Annual Report 2025-26.
Own contribution, lock-in and the claim: PMEGP guidelines, as a state agency's copy of them states.
Status in 2026: Union Budget 2026-27, as read on 02-Oct-2026.

Last checked: 02-Oct-2026.