Enter your project cost and get the exact margin money subsidy, your own contribution, the bank loan amount and the monthly EMI — including the 3-year TDR rule that most applicants get wrong.
पीएमईजीपी लोन सब्सिडी और EMI कैलकुलेटर — निःशुल्क
Margin money is calculated on the total project cost, not on the loan amount. Rural means an area falling under a Gram Panchayat.
| Category | Urban Subsidy | Rural Subsidy | Own Contribution |
|---|---|---|---|
| General category | 15% | 25% | 10% |
| SC / ST / OBC / Minority | 25% | 35% | 5% |
| Women / Ex-servicemen / PH | 25% | 35% | 5% |
| North East / Hill & border areas | 25% | 35% | 5% |
EMI shown at 11% p.a. for 7 years on the bank loan portion. Your actual rate will depend on your bank and CIBIL score.
| Project Cost | Area | Category | Subsidy | Own | Bank Loan | Monthly EMI |
|---|---|---|---|---|---|---|
| ₹5,00,000 | Rural | General | ₹1,25,000 (25%) | ₹50,000 | ₹3,25,000 | ₹5,573 |
| ₹10,00,000 | Rural | SC/ST | ₹3,50,000 (35%) | ₹50,000 | ₹6,00,000 | ₹10,289 |
| ₹10,00,000 | Urban | General | ₹1,50,000 (15%) | ₹1,00,000 | ₹7,50,000 | ₹12,861 |
| ₹25,00,000 | Rural | General | ₹6,25,000 (25%) | ₹2,50,000 | ₹16,25,000 | ₹27,865 |
| ₹50,00,000 | Rural | Women | ₹17,50,000 (35%) | ₹2,50,000 | ₹30,00,000 | ₹51,443 |
Year 0
Loan sanctioned, subsidy claimed
The bank sanctions the full loan and disburses it. Your KVIC margin money claim goes through the PMEGP e-Portal after the unit is set up.
Years 1–3
Subsidy parked in a TDR
KVIC releases the margin money to the bank, which locks it in a Term Deposit Receipt in your name. Your EMI is calculated on the full bank loan during this period.
After Year 3
TDR adjusted against loan
Once the field verification confirms the unit is operating, the TDR is adjusted against your outstanding. Your balance drops by the subsidy amount and the loan closes earlier.
PMEGP margin money (subsidy) depends on where the unit is located and which category you belong to. General category: 15% in urban areas, 25% in rural areas. Special category (SC/ST/OBC/Minority/Women/Ex-servicemen/Physically handicapped/North East/Hill and border areas): 25% in urban areas, 35% in rural areas. Rural means an area covered by a Gram Panchayat. This subsidy is calculated on the total project cost, not on the loan amount.
Own contribution is 10% of the project cost for general category applicants and 5% for special category applicants. So for a ₹10 lakh rural project by a general category applicant: subsidy 25% = ₹2.5 lakh, own contribution 10% = ₹1 lakh, bank loan 65% = ₹6.5 lakh.
No — and this is the single most misunderstood part of PMEGP. KVIC releases the margin money to your bank, which holds it as a Term Deposit Receipt (TDR) for 3 years in your name. During those 3 years your EMI is calculated on the full bank loan amount. Only after 3 years, once the field verification confirms the unit is actually operating, is the TDR adjusted against your loan and your outstanding balance drops. If the unit is not running or the loan turns NPA, the margin money can be recalled.
PMEGP does not carry a concessional interest rate — it is a subsidy scheme, not an interest subvention scheme. Banks charge their normal MSME rate, typically 10% to 12% p.a. depending on the bank, your CIBIL score and the loan amount. Public sector banks (SBI, PNB, BOB, Canara, Union) are generally at the lower end. There is no processing fee waiver mandated by the scheme.
The maximum project cost is ₹50 lakh for manufacturing units and ₹20 lakh for service and trading units (raised from ₹25 lakh and ₹10 lakh respectively). Subsidy is calculated only on the eligible project cost up to these caps — if your project costs more, the excess must be funded by you or by additional bank finance without subsidy. A second loan of up to ₹1 crore is available under PMEGP 2nd Upgradation for existing well-performing units.
PMEGP term loans are repayable over 3 to 7 years after an initial moratorium. The moratorium (repayment holiday) is up to 6 months, meant to cover the setup and trial-run period. Interest continues to accrue during the moratorium — it is either serviced monthly or capitalised into the loan, depending on the bank. A longer tenure lowers your EMI and improves DSCR, which matters because banks require DSCR of at least 1.25 (service) or 1.50 (manufacturing) in the project report.
Yes, directly. DSCR = (PAT + Depreciation + Interest) ÷ (Principal Repayment + Interest). Because the subsidy sits in a TDR for 3 years, your project report must show repayment on the full bank loan for years 1 to 3 — showing repayment on the net-of-subsidy amount is a common mistake that bank officers reject. Use the bank loan figure from this calculator as the term loan in your project report.