They are not interchangeable
MUDRA is a micro-loan framework (Shishu / Kishore / Tarun). PMEGP is a credit-linked subsidy for new micro enterprises. Stand-Up India is a composite bank loan for SC/ST and women entrepreneurs setting up greenfield units. Picking the wrong one wastes months on portals and branches.
MUDRA — small tickets, wide reach
- Best for traders, small manufacturers, and service units needing up to about ₹10 lakh (higher slabs may apply for repeat borrowers under current rules).
- Typically lighter documentation at smaller amounts.
- No large capital subsidy — it is credit, not a grant.
- Useful first step before CGTMSE or a full term loan.
PMEGP — subsidy for new units
PMEGP supports new manufacturing (higher project ceiling) and service projects with margin-money subsidy. Existing units that already took a similar subsidy are usually not eligible. You need a project report, often EDP training, and application through KVIC / DIC / KVIB channels plus a bank. Timelines are longer than a plain MSME loan.
Stand-Up India — SC/ST and women greenfield
Loans typically range from ₹10 lakh to ₹1 crore per eligible greenfield enterprise in manufacturing, services, or trading. It is a composite facility (term + working capital). Caste certificate (where applicable), controlling stake rules for women-owned units, and a viable DPR are central. It is not meant for refinancing an already running unit in the same activity.