PMEGP vs Dr Ambedkar DAUPY vs Vishwakarma (VYUPY) — Which Scheme Pays More for Your Business in Rajasthan: Margin Money vs Interest Subsidy, Loan Ceilings of ₹50 Lakh, ₹10 Crore and ₹2 Crore, Category and Age Conditions, Trading Eligibility, Term-Loan Minimums, the 3-Year TDR Lock-In, Worked Comparison on a ₹40 Lakh Project, and Whether Two Can Be Combined
Video Explanation & Insights
PMEGP, Ambedkar and Vishwakarma schemes — which is the best for you?
4 videos on this topic
The three schemes side by side
| PMEGP (Central) | Dr Ambedkar DAUPY (Rajasthan) | VYUPY / Vishwakarma (Rajasthan) | |
|---|---|---|---|
| Who | Individuals (proprietors), SHGs, trusts, societies; 18+; 8th pass above ₹10 L (mfg) / ₹5 L (service) | SC/ST entrepreneurs with caste certificate; proprietorship, partnership, company with SC/ST control | Rajasthan residents aged 18–45; in a firm/company the eligible person holds 51% |
| Activity | Manufacturing and service; no trading; negative list (meat, intoxicants, cultivation, certain transport) | Manufacturing, service and trading (with conditions) | Manufacturing and service; no trading |
| Project / loan ceiling | Project cost ₹50 L manufacturing, ₹20 L service | Loans up to ₹10 crore (interest subsidy slabs) | Loans up to ₹2 crore |
| Benefit | Margin money 15% (urban general), 25% (rural general / urban special), 35% (rural special) | Interest subsidy 9% up to ₹25 L, 7% ₹25 L–₹5 Cr, 6% ₹5–10 Cr; capital subsidy 25% up to ₹5 L | Interest subsidy up to 8% (7% + 1% for SC/ST/women/PwD); margin money 25% up to ₹5 L |
| Own contribution | 10% (5% special) | Scheme says 7.5%; banks in practice ask 25% margin | As per bank — typically 25% margin, partly met by the state margin money |
| Loan structure | Capital expenditure ≥ 60%; working capital ≤ 40% | Working capital up to 90% for trading; minimum term loan for manufacturing/service (the video cites 40%) | Term loan plus working capital as the bank appraises; land/building partly eligible |
| Lock-in / duration | Margin money in a TDR for 3 years | Interest subsidy for the loan period as per guidelines (5–7 years) | Interest subsidy for 5 years (7 for some categories) |
| Credit test | Score card ≥ 60 and the bank's norms | Bank's norms; CIBIL matters | Bank's norms |
| Where to apply | kviconline.gov.in (KVIC/KVIB/DIC) | Rajasthan SSO — Industries Department module | Rajasthan SSO — Industries Department module |
A ₹40 lakh manufacturing project — what each scheme is worth
Assume a ₹40 lakh project (₹28 lakh machinery, ₹12 lakh working capital), a bank loan of ₹36 lakh at 10% for 7 years, and an entrepreneur who is (a) a rural woman of 30, general category; (b) an SC entrepreneur of 40 in Jaipur; (c) a man of 35, general category, urban. The figures are indicative — banks' rates and each scheme's ceilings and periods apply.
| Entrepreneur | PMEGP | DAUPY | VYUPY | Best pair |
|---|---|---|---|---|
| (a) Rural woman, 30, general | 35% × ₹40 L = ₹14 L margin money (TDR 3 yrs) | Not eligible (not SC/ST) | 8% interest subsidy (7% + 1% women) on ₹36 L ≈ ₹2.9 L in year 1, ~₹9–10 L over 5 years; ₹5 L margin money | PMEGP margin money + VYUPY interest subsidy (drop VYUPY's margin money) |
| (b) SC entrepreneur, 40, urban | 25% × ₹40 L = ₹10 L | 9% interest subsidy on ₹36 L ≈ ₹3.2 L in year 1, ~₹10–12 L over the loan; capital subsidy 25% up to ₹5 L | 8% interest subsidy (SC bonus); age 40 qualifies | PMEGP margin money + DAUPY interest subsidy (higher rate and longer slab than VYUPY) |
| (c) Man, 35, urban, general | 15% × ₹40 L = ₹6 L | Not eligible | 7% interest subsidy ≈ ₹2.5 L in year 1, ~₹8 L over 5 years; ₹5 L margin money | VYUPY alone if the bank will not do PMEGP; PMEGP + VYUPY interest if it will |
- •A margin-money grant is worth more the earlier the exit or the shorter the loan; an interest subsidy is worth more on larger loans with long tenures — which is why VYUPY and DAUPY matter above the ₹50 lakh PMEGP ceiling.
- •The 'best pair' rule: one margin-money subsidy per asset (PMEGP's or the state's, not both), plus one interest subsidy; the bank must be willing to certify interest for the state claim each year.
- •Bank behaviour overrides scheme text: DAUPY's 7.5% contribution and VYUPY's ₹5 lakh margin money reduce, but rarely remove, the 25% margin a branch asks for.
Documents common to all three
- •Aadhaar, PAN, photos, age proof, education certificate (PMEGP), caste certificate (DAUPY), domicile/bonafide certificate of Rajasthan (state schemes).
- •Project report with cost, means of finance, working-capital cycle, projections and DSCR; machinery quotations; premises proof (ownership/lease) and rural certificate for PMEGP.
- •Bank account statement, CIBIL report, existing loan details; Udyam registration (after sanction for new units).
- •For firms/companies: deed/incorporation documents showing the eligible person's stake (51% under VYUPY; SC/ST control under DAUPY).
- •EDP training certificate (PMEGP) and the bank's sanction letter in the scheme's format for the claim.
Scheme comparison: questions we are asked
Yes in practice — PMEGP margin money and DAUPY's interest subsidy are different benefits; the DAUPY capital subsidy on the same asset is not claimed alongside PMEGP margin money.
Only DAUPY (SC/ST) among the three; women traders should look at the Nari Shakti scheme; others use Mudra/CGTMSE-backed loans without subsidy.
Yes if a person aged 18–45 holds 51% — the company applies, the eligible shareholder's profile qualifies it.
The bank recovers it from the TDR; the state interest subsidy stops and may be recovered for the period.
PMEGP typically 2–4 months to first disbursement; state interest subsidies are reimbursed after the bank certifies interest, so the cash benefit is slower but continues for years.
Yes — a numbers-based comparison on your project, eligibility gates, filing sequence and the bank coordination for both claims.