PMEGP Loan in West Bengal: Subsidy of 15% to 35%, Project Limits, Eligibility and How to Apply Through KVIC, KVIB or DIC
The Prime Minister’s Employment Generation Programme (PMEGP) is a central credit-linked subsidy scheme for new micro enterprises. In West Bengal it is run through KVIC, the West Bengal Khadi and Village Industries Board and the District Industries Centres. The government gives margin money subsidy of 15% to 35% of the project cost, depending on whether the unit is urban or rural and on the applicant’s category, on projects up to ₹50 lakh for manufacturing and ₹20 lakh for services. Applications are filed online on the PMEGP e-portal and sent to banks after a district-level review. It is often the best option for a first-time entrepreneur in Bengal who needs more than a state youth credit card offers.
PMEGP at a glance
| Point | Rule |
|---|---|
| Who | Any individual aged 18 or above; SHGs, societies, trusts and cooperatives |
| New units only | Existing units and those that have already taken a government subsidy are not eligible for the first loan |
| Maximum project cost | ₹50 lakh (manufacturing), ₹20 lakh (service or business) |
| Education | At least Class VIII pass for manufacturing projects above ₹10 lakh and service projects above ₹5 lakh |
| Own contribution | 10% (general), 5% (special categories) |
| Agencies | KVIC, KVIB (West Bengal Khadi and Village Industries Board), District Industries Centres |
Subsidy rates
| Category | Urban | Rural |
|---|---|---|
| General | 15% | 25% |
| Special (SC, ST, OBC, minorities, women, ex-servicemen, persons with disabilities, transgender, North-East, hill and border areas) | 25% | 35% |
The subsidy is kept in the bank as a term deposit for three years and adjusted against the loan if the unit runs well.
Activities not allowed
Activities on the negative list include meat processing and sale, intoxicants, certain plantation activities, and some environmental and social exclusions. Most manufacturing and service activities — food processing, garments, furniture, printing, repair workshops, beauty parlours, transport services and so on — are allowed.
How to apply
- Prepare a project report with machinery quotations, working capital, sales and profit for five years.
- Apply on the PMEGP e-portal, choose the agency (KVIC, KVIB or DIC) and preferred bank branch.
- The district task force interviews applicants and recommends the application to the bank.
- The bank appraises and sanctions the loan.
- Complete the Entrepreneurship Development Programme (EDP) training before the subsidy is released.
- Start the unit, and allow physical verification.
Second loan for upgrading
A unit that has repaid its first PMEGP loan and is running well can take a second loan up to ₹1 crore for manufacturing or ₹25 lakh for services to expand, with 15% subsidy (20% in North-East and hill areas).
Combine with state support
Udyam registration is needed after the unit starts. Check what West Bengal offers on top, such as the new Banglar Udyam Credit Card and the West Bengal Industrial Policy 2026. Do not claim the same cost twice under two subsidy schemes.
FAQs
What is the maximum PMEGP loan in West Bengal?
Projects up to ₹50 lakh for manufacturing and ₹20 lakh for services, with the bank financing the cost after your contribution.
How much subsidy does a woman entrepreneur in Kolkata get?
25% of project cost in urban areas and 35% in rural areas, as a special category applicant.
Is collateral needed for a PMEGP loan?
Loans up to ₹10 lakh are generally collateral-free, and larger loans are covered by credit guarantee.
Can an existing business get PMEGP?
Not for the first loan. Only new units qualify; existing PMEGP units can take the second loan.
TAXAJ prepares PMEGP project reports and Udyam and GST registrations for entrepreneurs in Kolkata and across Bengal. Talk to our Kolkata team.
Last updated 11 November 2026. Sources: PMEGP guidelines of the Ministry of MSME (as revised for the scheme period to 2025-26 and later extensions); KVIC PMEGP e-portal. Check the current scheme period and guidelines before applying. General information only.
