PMEGP Loan EMI Calculator
PMEGP funds new micro enterprises up to ₹50 lakh project cost for manufacturing and ₹20 lakh for service units. The critical thing to get right when calculating an EMI is which number you enter: your EMI is charged on the bank loan, not on the project cost minus subsidy. The margin money subsidy is held in a locked deposit for three years before it is adjusted against your outstanding, so it does not lower your instalment in the meantime.
Monthly EMI
₹20,758
₹10 Lakh at 9.00% for 5 years
Interest is 25% of the amount borrowed over this tenure.
Year-by-year repayment schedule
How each year splits between interest and principal. Early years are mostly interest, which is why prepaying early saves so much more than prepaying late.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | ₹1,65,830 | ₹83,270 | ₹8,34,170 |
| 2 | ₹1,81,386 | ₹67,714 | ₹6,52,784 |
| 3 | ₹1,98,401 | ₹50,699 | ₹4,54,382 |
| 4 | ₹2,17,013 | ₹32,088 | ₹2,37,370 |
| 5 | ₹2,37,370 | ₹11,730 | ₹0 |
This calculator returns arithmetic on the figures you enter. It is not an offer, does not check your eligibility, and cannot predict the rate a lender will sanction. Loans Got Easy is an authorised Direct Selling Agent - we do not sanction, approve or disburse loans.
Enter the loan, not the project cost minus subsidy
This is the mistake that makes PMEGP budgets fail in year one. On a ₹20 lakh rural service project, a special category applicant receives ₹7 lakh of subsidy and contributes ₹1 lakh, so it is tempting to calculate the EMI on ₹12 lakh. The bank, however, lends and charges interest on its full exposure, and the ₹7 lakh sits as a term deposit in your name until the three-year lock-in ends. Calculate on the bank loan, and treat the subsidy as a reduction in outstanding that arrives later.
There is no PMEGP interest rate to look up
The scheme guidelines say only that the normal rate of interest is charged. PMEGP does not fix a rate and the subsidy is a capital subsidy on the project rather than an interest subsidy, so it does not make your borrowing cheaper per rupee. The calculator opens at a reference rate for micro-enterprise term lending; replace it with the rate your bank has actually quoted, because that is the only number that matters to your instalment.
Tenure and moratorium
PMEGP repayment runs between three and seven years after an initial moratorium set by the financing bank. The scheme does not fix the moratorium length, so a figure quoted to you is that lender's practice. A moratorium defers principal but interest usually continues to accrue during it, which is worth confirming with the branch rather than assuming - it changes what you actually pay over the life of the loan.
What the calculator does not decide
This tool performs arithmetic on the numbers you enter. It does not check eligibility, does not reflect any offer, and cannot predict whether a PMEGP application will be sanctioned. KVIC, the State KVIB or the District Industries Centre screens and recommends the file, but the bank sanctions it on its own credit assessment. Loans Got Easy is a loan advisory and Direct Selling Agent and does not sanction, approve or disburse loans.
Rates sourced from partner lender published rate schedules, last verified August 2026. Figures produced by this calculator are indicative and depend entirely on the inputs you provide. The rate you are offered is set by the lender based on your credit profile, income, employer, loan amount and tenure.
Frequently Asked Questions
No. Your EMI is calculated on the full bank loan. The margin money subsidy is held by the bank as a term deposit in your name for a three-year lock-in and then adjusted against your outstanding. Budget for the full instalment from month one.
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Rates last verified August 2026. Loans Got Easy is a loan advisory and Direct Selling Agent. We do not sanction, approve or disburse loans - the lender does, based on its own credit assessment.