PMEGP second loan for upgrading existing units PMEGP 2nd loan
A second bank loan with a 15% subsidy for well-run units first set up under PMEGP, REGP or MUDRA that want to expand or upgrade.
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- Cost to apply
- Free
- Status
- Open
- Run by
- Ministry of MSME, run by KVIC with KVIBs, District Industries Centres and the Coir Board
What you get
- Subsidy of 15% of project cost for all categories, 20% in the North East and hill areas
- Project cost up to ₹1 crore in manufacturing and ₹25 lakh in services
Who can apply
- Businesses that are already running.
- Open to businesses in manufacturing and services.
- Micro and small enterprises.
- Project cost up to ₹1 crore.
- Udyam registration is needed. It is free.
- The unit was financed under PMEGP or MUDRA (PIB also mentions REGP), its margin money claim was adjusted, and the first loan was repaid on time
- The unit made a profit in each of the last three years. FY 2020-21 and 2021-22 are exempted from the profit test because of COVID.
- Can apply to the bank that gave the first loan or to any other willing bank
Where to apply
In person, nearest KVIB, District Industries Centre or Coir Board office
In Kerala, Kerala Khadi and Village Industries Board, District Industries Centres, and the Coir Board for coir units
Documents to keep ready
- Udyam Registration certificate
- Audited accounts or profit records for the last three years
- Proof that the first loan was repaid
Worth knowing
Available since 2018-19. Same funding position as the main PMEGP scheme.
Where we found this
An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.