2nd Loan for Up-gradation of Existing PMEGP / REGP / MUDRA Units

About the Programme

Supports successful existing PMEGP, REGP or MUDRA units for expansion, modernization, technology upgradation and additional employment generation.

Primary Benefit

Up to INR 15 lakh subsidy (15% of project cost).

Apply / Know More

pmegp.msme.gov.in

Benefits

• Financial assistance for expansion and technology upgradation
• Maximum project cost: INR 1 crore for Manufacturing
• Maximum project cost: INR 25 lakh for Service/Trading
• Subsidy up to 15% of project cost
• Subsidy up to 20% for North Eastern Region and Hill States
• Remaining amount is provided by the bank as a term loan

Eligibility

Existing successful/well-performing PMEGP, REGP or MUDRA units seeking expansion, modernization or technology upgradation.

Documents

Refer to the linked application portal for the current checklist.

FAQ

Q1. What is the purpose of the second-loan component? It supports successful existing PMEGP, REGP or MUDRA units undertaking expansion, modernisation or technology upgradation.
Q2. What are the project-cost limits? The admissible maximum project cost is Rs. 1 crore for manufacturing and Rs. 25 lakh for business or service activities, subject to current PMEGP guidelines.
Q3. What subsidy is available? Margin-money subsidy is generally 15% of eligible project cost and 20% in the North Eastern Region and hill states, subject to the applicable ceiling and guidelines.
Q4. How can an eligible unit apply? Apply through the PMEGP e-portal and the concerned implementing agency or bank with proof of satisfactory performance, repayment and the proposed upgradation project.

Beneficiary:

As mentioned above

Benefits:

As mentioned above