{"id":1227,"date":"2026-10-06T09:05:36","date_gmt":"2026-10-06T09:05:36","guid":{"rendered":"https:\/\/www.creditinline.com\/blogs\/?p=1227"},"modified":"2026-10-06T09:05:59","modified_gmt":"2026-10-06T09:05:59","slug":"stand-up-india-scheme-vs-pmegp-loan-which-is-better","status":"publish","type":"post","link":"https:\/\/www.creditinline.com\/blogs\/stand-up-india-scheme-vs-pmegp-loan-which-is-better\/","title":{"rendered":"Stand Up India Scheme vs PMEGP Loan: Which Is Better?"},"content":{"rendered":"\t\t
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Whenever you think of starting a new business or want to expand an existing one, funds are a prominent factor that are invariably required for all the essential things like buying equipment for a manufacturing company, working capital, rent for the space, raw materials and other related expenses. To cover such expenses and to encourage entrepreneurs, the Government of India has introduced different schemes. These options are the <\/span>Stand Up India Scheme<\/b> and the Prime Minister’s Employment Generation Programme (PMEGP).<\/span><\/p>

From the above, the Stand-Up India Scheme was mainly introduced and implemented for women and SC\/ST entrepreneurs, especially for starting greenfield enterprises. Whereas, PMEGP was implemented to create employment through new micro-enterprises, especially in the non-farm sector, such as manufacturing.\u00a0<\/span><\/p>

The loan amount, eligibility, and documents for both schemes are different. To understand them, let\u2019s look at each one separately, including the differences like <\/span>PMEGP loan interest rate<\/b>, eligibility criteria, etc.<\/span><\/p>

Difference Between Stand Up India Scheme and PMEGP<\/b><\/h2>

The main difference between the above can be based on the types of business and industry.\u00a0 The Stand Up India scheme is mainly focused on women and SC\/ST entrepreneurs, where the loan amount, depending on the creditworthiness, can vary from \u20b910 lakh to \u20b91 crore, especially for eligible greenfield businesses. It can cover manufacturing, services, trading and agriculture-related activities.<\/span><\/p>

Similarly, PMEGP is a credit-linked subsidy programme which can be available for establishing new micro-enterprises and generating employment in both rural and urban areas. For such a loan scheme, any eligible entrepreneur can apply, and the approval can be subject to the scheme conditions.<\/span><\/p>

Stand Up India Scheme:\u00a0 A Brief Description<\/b><\/h2>

The Stand-Up India Scheme<\/a><\/strong> was launched in 2016 to promote entrepreneurship, especially among women and SC\/ST communities. Under this scheme, eligible entrepreneurs could receive loans of \u20b910 lakh to \u20b91 crore through Scheduled Commercial Banks for new businesses in manufacturing, services, trading and agriculture-allied activities. The loan had a repayment facility of up to seven years, including a moratorium of up to 18 months, with at least 10% own contribution. The original scheme ended in March 2025, while a new scheme is under preparation\u00a0<\/span><\/p>

PMEGP: Brief Description<\/b><\/h2>

The <\/span>Prime Minister\u2019s Employment Generation Programme<\/a> (PMEGP)<\/b> is a credit-linked subsidy scheme which is managed by the Ministry of MSME, with KVIC as the national nodal agency. It was introduced to support new micro-enterprises in the non-farm sector to promote employment. The maximum project cost eligible for subsidy is \u20b950 lakh for manufacturing and \u20b920 lakh for service or business projects, depending on the eligibility and other factors. The subsidy can range from 15% to 35%.<\/span><\/p>

Difference Between Stand Up India and PMEGP<\/b><\/h2>

Some basic differences between the Stand Up India scheme and PMEGP\u00a0<\/span><\/p>

Factor<\/span><\/p><\/td>

Stand Up India Scheme<\/span><\/p><\/td>

PMEGP<\/span><\/p><\/td><\/tr>

Main focus<\/span><\/p><\/td>

Entrepreneurship among women and SC\/ST groups<\/span><\/p><\/td>

New micro-enterprises and employment generation<\/span><\/p><\/td><\/tr>

Target applicants<\/span><\/p><\/td>

Women and SC\/ST entrepreneurs under the original scheme<\/span><\/p><\/td>

Eligible individuals above 18 years, subject to conditions<\/span><\/p><\/td><\/tr>

Original loan range<\/span><\/p><\/td>

\u20b910 lakh to \u20b91 crore<\/span><\/p><\/td>

Project-based bank finance with subsidy support<\/span><\/p><\/td><\/tr>

Project focus<\/span><\/p><\/td>

Greenfield enterprises<\/span><\/p><\/td>

New micro-enterprises in the non-farm sector<\/span><\/p><\/td><\/tr>

Manufacturing<\/span><\/p><\/td>

Yes<\/span><\/p><\/td>

Yes<\/span><\/p><\/td><\/tr>

Services<\/span><\/p><\/td>

Yes<\/span><\/p><\/td>

Yes<\/span><\/p><\/td><\/tr>

Trading<\/span><\/p><\/td>

Yes, under scheme conditions<\/span><\/p><\/td>

Permitted under specified PMEGP conditions<\/span><\/p><\/td><\/tr>

Government support<\/span><\/p><\/td>

Loan-based support under original scheme<\/span><\/p><\/td>

Credit-linked margin-money subsidy<\/span><\/p><\/td><\/tr>

Own contribution<\/span><\/p><\/td>

Minimum 10% under original scheme<\/span><\/p><\/td>

Generally 10% for general category and 5% for eligible special categories<\/span><\/p><\/td><\/tr>

Current 2026 position<\/span><\/p><\/td>

Original scheme ended March 31, 2025; new scheme announced but framework under preparation<\/span><\/p><\/td>

Current PMEGP scheme is operational<\/span><\/p><\/td><\/tr><\/tbody><\/table>

As per the comparison,\u00a0 the PMEGP scheme is currently more relevant, and it is available for eligible applicants, especially those willing to set up a new micro-enterprise.<\/span><\/p>

Things to Consider Before Applying<\/b><\/h2>

If you are planning to apply for government business-finance schemes, you must look at the following factors and these are as follows.<\/span><\/p>