2nd Loan for up-gradation of the existing PMEGP/REGP/ MUDRA units

Objective:

• With an objective to assist existing units for expansion and upgradation, the scheme provides financial assistance to successful/well performing units. 
• The scheme also caters to the need of the entrepreneurs for bringing new technology/ automation so as to modernize the existing unit.

Key benefits

• Maximum subsidy would be 15% of the project cost (20% for NER and Hill States). The balance amount of the total project cost is provided by Banks as term loan.  

Scheme applicable for:

Existing well performing PMEGP/REGP/MUDRA units

Scheme information 

• Further financial assistance scheme for expansion/ upgrade the existing PMEGP/REGP/MUDRA units for manufacturing and Service/ Trading units from the year 2018-19
• The maximum cost of the project under manufacturing sector for up-gradation is Rs.1.00 crore and Rs. 25.00 lakhs under Service/ Trading sector.
• Maximum subsidy would be 15% of the project cost (20%) for NER and Hill States) i.e. Rs. 15.00 lakhs in Non-NER and Rs. 20.00 Lakh for NER and Hill States. The balance amount of the total project cost shall be provided by Banks as term loan. 
• All existing units financed under PMEGP/MUDRA Scheme whose margin money claim has been adjusted and the first loan availed has been repaid in stipulated time are eligible to avail the benefits
• The units should have been making profit for the last three years.
• Beneficiary can apply to the same financing bank, which sanctioned the loan for their unit, or to any other financing bank, which is willing to extend credit facility for second loan. 
• The beneficiary can choose any implementing agency and that may be different from the agency chosen for 1st loan.
• Registration of Udyog Aadhar Memorandum (UAM)/UDYAM REGISTRATION is mandatory.
• The 2nd loan should lead to additional employment generation. 

How to apply

•  To submit the application under 2nd loan for up-gradation, the beneficiaries have to apply by filling application form on PMEGP e-Portal.

For details, click here.