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

The “2nd Loan for up-gradation of the existing PMEGP/REGP/MUDRA units” is a financial assistance scheme under the Ministry of Micro, Small and Medium Enterprises. It supports existing units—originally set up under PMEGP, REGP, or MUDRA—that are performing well and are ready to expand and upgrade.

Under this scheme, eligible units can receive a margin-money subsidy of 15% of the project cost, which rises to 20% for units located in the North Eastern Region (NER) and Hill States, helping them grow their capacity and modernise their operations.

Many micro and small units succeed with their first loan but then struggle to find affordable capital to grow. This scheme rewards well-performing units with support to expand and modernise.

• Support for Growth:

  • Enables successful units to expand capacity and upgrade technology.
• Higher Support for Remote Regions:

  • 20% assistance for NER and Hill States versus 15% elsewhere, recognising regional challenges.
• Rewards Performance:

  • Targeted at successful/well-performing PMEGP/REGP/MUDRA units.
• Strengthens MSMEs:

  • Helps existing enterprises become more competitive and sustainable.

• Expansion:

  • Financial assistance to increase the capacity of existing units.
• Upgradation:

  • Support for modernising machinery and technology.
• Performance-Based Growth:

  • Assistance directed at well-performing units.
• Regional Equity:

  • Enhanced 20% support for NER and Hill States.

The “2nd Loan for up-gradation of the existing PMEGP/REGP/MUDRA units” scheme is an excellent opportunity for established, well-performing micro and small units to take the next step in their growth journey. By offering 15% of the project cost—and 20% for NER and Hill States—the scheme makes expansion and modernisation more affordable. If you run an existing PMEGP, REGP, or MUDRA unit and are ready to scale, this scheme can help fund your next phase.