PMEGP Second Loan for Upgradation and Expansion of Existing Units
Subsidized loan up to ₹1 Crore with 15-20% government capital subsidy for expanding existing successful PMEGP units available across districts in All India.
Quick Eligibility Snapshot
₹Benefits & Entitlement Breakdown
📊Budget Allocation & Beneficiary Reach
Over 12,000 MSME units expanded and upgraded
As of: 2026-01-20PIB / Official Citation ↗Verified Eligibility Criteria
Existing well-performing PMEGP/MUDRA unit that has repaid first loan in full without default.
Required Documents Checklist
Verify readiness before applying for PMEGP Second Loan for Upgradation and Expansion of Existing Units. Check off your papers or print this list before visiting your local CSC / Cyber Cafe.
Mandatory Documents(3)
Check off as readyKeep self-attested photocopies and clear digital scans (100 KB – 200 KB, PDF/JPG format) ready to avoid portal upload timeouts.
Avoid Pre-Application Document Rejections for PMEGP Second Loan for Upgradation and Expansion of Existing Units
PMEGP Second Loan for Upgradation and Expansion of Existing Units involves specialized bank appraisals, CIBIL eligibility, or survey quotas. Avoid paying unverified agents or cyber cafe fees — get an independent pre-application document audit and verified checklist.
- ✓Valid issuing authority rules (Tehsildar/SDM)
- ✓Aadhaar-DBT bank seeding verification
- ✓Direct official portal guide (no middlemen)
- ✓Email delivery in 1–2 hrs during desk hours
* Notice: We provide pre-application document checklists only; loan sanction rests solely with official lending banks.
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Application Effort & Process Friction
Readiness assessment derived from official prerequisites, mandatory documentation, and submission channels.
Effort scores reflect portal accessibility, mandatory document burden, and physical verification requirements.
How to Apply
- 1
Apply online on the PMEGP e-Portal (kviconline.gov.in).
- 2
Upload audited balance sheets for last 3 years proving profitability and full repayment of first loan.
- 3
Bank sanctions loan; KVIC releases margin money subsidy after physical verification.
✅Before You Begin — Pre-Application Checklist
⚠️Common Rejection Reasons — Avoid These
Default or NPA on first PMEGP loan or unit operating at a net loss.
Official Government Application Portal
You will be redirected to the secure official portal: www.kviconline.gov.in
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Get Scheme Blueprint (₹49)→Frequently Asked Questions (Officially Sourced)
Verified answers sourced directly from official circulars, gazettes, and portal FAQs. Never AI-invented.
What is the margin money subsidy for special categories in rural areas?
Special category beneficiaries (SC, ST, OBC, Women, Ex-Servicemen) receive 20% capital subsidy in rural areas.
Source: Official Scheme FAQ ↗Who is eligible to apply for PMEGP Second Loan for Upgradation and Expansion of Existing Units?
Eligible applicants must satisfy official government criteria for PMEGP Second Loan for Upgradation and Expansion of Existing Units. Age: min 21 max 65 years. Conditions: Existing well-performing PMEGP/MUDRA unit that has repaid first loan in full without default..
Source: Official Scheme FAQ ↗How do I apply for PMEGP Second Loan for Upgradation and Expansion of Existing Units? What is the official process?
To apply for PMEGP Second Loan for Upgradation and Expansion of Existing Units, applicants should follow the official procedure: 1. Apply online on the PMEGP e-Portal (kviconline.gov.in). 2. Upload audited balance sheets for last 3 years proving profitability and full repayment of first loan. 3. Bank sanctions loan; KVIC releases margin money subsidy after physical verification.
Source: Official Scheme FAQ ↗What documents are required to apply for PMEGP Second Loan for Upgradation and Expansion of Existing Units?
The mandatory documents required for PMEGP Second Loan for Upgradation and Expansion of Existing Units include: First PMEGP Loan No-Dues Certificate, Audited Balance Sheets (Last 3 Years), Detailed Project Report (DPR) for Expansion. Applicants must ensure all copies are valid and attested.
Source: Official Scheme FAQ ↗Can I track my PMEGP Second Loan for Upgradation and Expansion of Existing Units application status?
Application status for PMEGP Second Loan for Upgradation and Expansion of Existing Units can typically be tracked through the official portal at www.kviconline.gov.in using your Aadhaar number, application reference number, or registered mobile number. Alternatively, contact the scheme helpline or visit your nearest Common Service Centre (CSC).
What should I do if my PMEGP Second Loan for Upgradation and Expansion of Existing Units payment is delayed or rejected?
First, verify your Aadhaar-bank account seeding status on the NPCI mapper (npci.org.in). If seeding is confirmed and payment is still pending, register a complaint on the Central Public Grievance Redressal System at pgportal.gov.in. You may also file an RTI application at rtionline.gov.in to obtain official rejection reasons within 30 days.
Is there an income tax implication for receiving PMEGP Second Loan for Upgradation and Expansion of Existing Units benefits?
Agricultural income and certain welfare subsidies may be exempt from income tax under Section 10 of the Income Tax Act, 1961. Tax treatment varies by scheme type and beneficiary income level. Consult a certified tax practitioner or visit incometax.gov.in for scheme-specific tax guidance.
Common Rejection Reasons & Warnings
Default or NPA on first PMEGP loan or unit operating at a net loss.
Editorial Verification & Change Log
| Date | Field | Description / Update | Source Citation |
|---|---|---|---|
| 2026-10-18 | scheme_type | cs | Official Source ↗ |
| 2026-10-06 | short_description | Subsidized loan up to ₹1 Crore with 15-20% government capital subsidy for expanding existing successful PMEGP units available across districts in All India. | Official Source ↗ |
| 2026-09-26 | initial_verification | Baseline verification of PMEGP Second Loan for Upgradation and Expansion of Existing Units guidelines, benefits, and portal integration. | Official Source ↗ |
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Application Window & Deadlines
Continuous online application intake on KVIC portal
🛟Grievance & RTI Channels
Scheme Intelligence
How is this calculated? ↗Verified 23d ago from .gov.in source
Requires documentation or office visit
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📅Scheme Milestone Timeline
Subsidized loan up to ₹1 Crore with 15-20% government capital subsidy for expand...
Official Source ↗Baseline verification of PMEGP Second Loan for Upgradation and Expansion of Exis...
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Official Helpline & Nodal Offices
KVIC Central Office
Gramodaya, 3 Irla Road, Vile Parle (West), Mumbai 400056
Helpline: 022-26714371
Jurisdiction: Central (All India)Notice a Discrepancy?
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Verification Metadata
Last verified by Eligo researchers on 2026-09-26 against official government documentation.
Eligo is an independent information platform unaffiliated with any government body. Always confirm latest terms directly on the official portal.