PMEGP Second Loan for Upgradation of Service Enterprises (Up to ₹25 Lakh with 15% Subsidy)
Expansion subsidy scheme providing 15% capital subsidy on bank credit up to ₹25 Lakh for existing successful PMEGP service sector businesses.
Quick Eligibility Snapshot
₹Benefits & Entitlement Breakdown
📊Budget Allocation & Beneficiary Reach
Over 8,500 service enterprises scaled via second loan assistance
As of: 2026-01-20PIB / Official Citation ↗Verified Eligibility Criteria
Existing PMEGP service unit holders with clean credit track record and minimum 3 years profitable operations.
Required Documents Checklist
Verify readiness before applying for PMEGP Second Loan for Upgradation of Service Enterprises (Up to ₹25 Lakh with 15% Subsidy). Check off your papers or print this list before visiting your local CSC / Cyber Cafe.
Mandatory Documents(3)
Check off as readySupporting / Optional Documents(1)
Keep 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 Service Enterprises (Up to ₹25 Lakh with 15% Subsidy)
PMEGP Second Loan for Upgradation of Service Enterprises (Up to ₹25 Lakh 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
Apply through PMEGP online portal under Second Loan for Existing Units - Service Sector.
- 2
Submit repayment confirmation of primary loan along with 3 years audited accounts and growth strategy.
- 3
District task force committee endorses expansion proposal to original or new commercial bank.
- 4
Subsidy credited to 3-year escrow TDR upon disbursement of expansion loan.
✅Before You Begin — Pre-Application Checklist
⚠️Common Rejection Reasons — Avoid These
Unresolved defaults on primary loan, absence of 3 consecutive years of profit, or changing to prohibited trade.
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 maximum subsidy for upgrading a service enterprise?
The maximum subsidy is 15% of ₹25 Lakh, i.e., ₹3.75 Lakh (₹5 Lakh for NER and Himalayan regions).
Source: Official Scheme FAQ ↗Can service enterprises switch banks for the second loan?
Yes, the applicant may choose their existing bank or apply to any other participating scheduled commercial bank.
Source: Official Scheme FAQ ↗Is EDP training required again for the second loan?
No, entrepreneurs who completed EDP during the first loan are exempted from repeating the foundational course.
Source: Official Scheme FAQ ↗Can I track my PMEGP Second Loan for Upgradation of Service Enterprises (Up to ₹25 Lakh with 15% Subsidy) application status?
Application status for PMEGP Second Loan for Upgradation of Service Enterprises (Up to ₹25 Lakh 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 Service Enterprises (Up to ₹25 Lakh 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 Service Enterprises (Up to ₹25 Lakh 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
Unresolved defaults on primary loan, absence of 3 consecutive years of profit, or changing to prohibited trade.
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 Service Enterprises (Up to ₹25 Lakh with 15% Subsidy) guidelines, benefits, and portal integration. | Official Source ↗ |
⚖Compare with Similar Schemes
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Application Window & Deadlines
Continuous financial year cycle
🛟Grievance & RTI Channels
Scheme Intelligence
How is this calculated? ↗Verified 8d ago from .gov.in source
Requires documentation or office visit
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📅Scheme Milestone Timeline
Baseline verification of PMEGP Second Loan for Upgradation of Service Enterprise...
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.