PMEGP Second Loan for Upgradation of Manufacturing Units (Up to ₹1 Crore with 15% Subsidy)
Expansion subsidy scheme offering 15% capital subsidy (20% for NER/Hills) on bank loans up to ₹1 Crore for well-performing existing PMEGP manufacturing units.
Quick Eligibility Snapshot
₹Benefits & Entitlement Breakdown
📊Budget Allocation & Beneficiary Reach
Special PMEGP 2nd Loan allocation under MSME Ministry
Official Budget Document ↗Over 15,000 successful PMEGP units upgraded to modern medium/small enterprises
As of: 2026-01-20PIB / Official Citation ↗Verified Eligibility Criteria
Existing PMEGP/MUDRA manufacturing unit that has successfully repaid prior loan and generated net profit in last 3 consecutive financial years.
Required Documents Checklist
Verify readiness before applying for PMEGP Second Loan for Upgradation of Manufacturing Units (Up to ₹1 Crore with 15% Subsidy). Check off your papers or print this list before visiting your local CSC / Cyber Cafe.
Mandatory Documents(4)
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 of Manufacturing Units (Up to ₹1 Crore with 15% Subsidy)
PMEGP Second Loan for Upgradation of Manufacturing Units (Up to ₹1 Crore with 15% Subsidy) 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
Ensure the first PMEGP manufacturing loan has been completely repaid on time or is performing with at least 3 years profitable track record.
- 2
Apply online through PMEGP 2nd Loan Module (kviconline.gov.in/pmegpeportal).
- 3
Submit CA-audited balance sheets for past 3 years, GST returns, and expansion DPR for machinery addition.
- 4
KVIC/DIC verifies enterprise continuity; financing bank sanctions loan and claims 15% subsidy from nodal bank.
✅Before You Begin — Pre-Application Checklist
⚠️Common Rejection Reasons — Avoid These
Default history on 1st PMEGP loan, failure to maintain audited books, or non-profitable business performance.
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.
Can an entrepreneur who took a MUDRA loan apply for PMEGP 2nd Loan?
Yes, well-performing MUDRA enterprise units can also apply for the 2nd Loan for Upgradation under amended PMEGP guidelines.
Source: Official Scheme FAQ ↗What is the maximum subsidy amount for manufacturing upgradation?
The maximum subsidy is 15% of ₹1 Crore, which amounts to ₹15 Lakh (or ₹20 Lakh in North Eastern Region and hilly states).
Source: Official Scheme FAQ ↗Is physical verification conducted before 2nd loan sanction?
Yes, the sponsoring agency (KVIC/DIC/KVIB) inspects the existing factory premise to ensure active commercial operation.
Source: Official Scheme FAQ ↗Can I track my PMEGP Second Loan for Upgradation of Manufacturing Units (Up to ₹1 Crore with 15% Subsidy) application status?
Application status for PMEGP Second Loan for Upgradation of Manufacturing Units (Up to ₹1 Crore with 15% Subsidy) 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 of Manufacturing Units (Up to ₹1 Crore with 15% Subsidy) 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 of Manufacturing Units (Up to ₹1 Crore with 15% Subsidy) 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 history on 1st PMEGP loan, failure to maintain audited books, or non-profitable business performance.
Editorial Verification & Change Log
| Date | Field | Description / Update | Source Citation |
|---|---|---|---|
| 2026-10-18 | scheme_type | cs | Official Source ↗ |
| 2026-09-28 | initial_verification | Baseline verification of PMEGP Second Loan for Upgradation of Manufacturing Units (Up to ₹1 Crore with 15% Subsidy) guidelines, benefits, and portal integration. | Official Source ↗ |
⚖Compare with Similar Schemes
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Application Window & Deadlines
Open continuously for performing PMEGP units
🛟Grievance & RTI Channels
Scheme Intelligence
How is this calculated? ↗Verified 7d ago from .gov.in source
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📅Scheme Milestone Timeline
Baseline verification of PMEGP Second Loan for Upgradation of Manufacturing Unit...
Official Source ↗Schemes You Can Stack With This
Complementary programs with non-conflicting eligibility that you can claim concurrently:
Official Helpline & Nodal Offices
Khadi and Village Industries Commission (KVIC)
Gramodaya, 3, Irla Road, Vile Parle (West), Mumbai 400056
Helpline: 022-26714370
Jurisdiction: NationalNotice a Discrepancy?
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Verification Metadata
Last verified by Eligo researchers on 2026-10-12 against official government documentation.
Eligo is an independent information platform unaffiliated with any government body. Always confirm latest terms directly on the official portal.