PMEGP Resource Center — Margin Money for Manufacturing & Services

Margin money rates: General category 15% (urban) / 25% (rural). Special category (SC/ST/OBC/Women/Minorities/Ex-servicemen/PH/NER) 25% (urban) / 35% (rural).

Promoter contribution: 10% (general) or 5% (special category). Bank loan covers the balance. The margin money is parked as Term Deposit and adjusted against the loan after 3 years of successful operation.

Eligibility: applicant aged 18+, no income ceiling, 8th-pass minimum for projects above ₹10 lakh (manufacturing) and above ₹5 lakh (service). EDP training is mandatory before fund release.

Cold storage / mini cold rooms (₹35–50 lakh): qualify as manufacturing under PMEGP. AgriMotion provides EPC + DPR + filing.

Masala / spice grinding unit (₹12–25 lakh): pulveriser + sealer + branding + GST + FSSAI. Fast-moving in tier-3 cities.

Mustard / groundnut oil expeller (₹15–30 lakh): expeller, filter press, decanter and packing line. Good fit for oilseed-growing districts.

RO water / mineral water plant (₹15–35 lakh): bore well, RO system, UV chamber, jar/bottle washing, filling and capping.

Agarbatti and dhoop stick (₹8–15 lakh): high-speed machines + raw material + packing.

Paper plate and paper cup (₹10–22 lakh): hydraulic die machine, automatic paper cup machine.

Step 1: Register on kviconline.gov.in/pmegpeportal. Upload project DPR, ID/address proof, education certificate, caste certificate and project photos.

Step 2: District Task Force Committee (DTFC) shortlists applications and recommends to the financing bank. AgriMotion preps you for the DTFC interview — most rejections happen here.

Step 3: Bank appraisal under standard credit norms. Project viability is judged on DSCR, IRR and promoter capacity. A weak DPR gets returned at this stage.

Step 4: Loan sanctioned. EDP training (2 weeks) at a KVIC-approved centre. Margin money released to bank as Term Deposit after EDP certificate is uploaded.

Step 5: Disbursement against bills. Project must commission within 6 months of first disbursement and operate continuously for 3 years; otherwise margin money is recovered.