2nd Loan for Upgradation of Existing PMEGP/MUDRA Units
Ministry of Micro, Small and Medium Enterprises (MSME) Implementation The 2nd Loan scheme provides credit-linked subsidy support to successful existing PMEGP/MUDRA units for expansion, upgradation and technology improvement.
Eligibility Criteria
- Existing PMEGP or MUDRA units with a good performance track record
- First loan must be fully repaid or regularly serviced
- Business should be profitable for the last 2–3 years
- Must have Udyam Registration
- Expansion should result in additional employment generation
- Applicants can apply through the same or a different bank willing to extend credit
Benefits
- Subsidy support: 15% for General areas, 20% for North Eastern Region (NER) & Hill States
- Maximum project cost – Manufacturing sector: up to ₹1 crore
- Maximum project cost – Service/Trading sector: up to ₹25 lakh
- Interest subvention: 3% per annum
- Supports business expansion, modernisation, and scaling operations
How to Apply
- Apply through the official PMEGP portal (2nd loan section): https://www.kviconline.gov.in
- Submit application via existing or new financing bank
- Provide expansion project plan and financial details
- Beneficiaries can choose any implementing agency like KVIC, KVIB, DIC
Documents Required
- Udyam Registration Certificate
- Previous loan repayment proof
- Business performance records
- Project report for expansion
- KYC documents (Aadhaar Card, PAN Card)
- Audited financial statements and Income Tax Returns (ITR) for the last 3 years
- Proof of margin money (subsidy) adjustment from the first loan
- Proof of business premises (ownership/rent agreement)
- Passport-size photographs
Important Disclaimer
We’ve simplified this scheme to help you understand it quickly. For the latest updates or detailed guidelines, you can always check the official government website.
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