Government Loans & Schemes for Women Entrepreneurs business loan
1. Mudra Yojana
- Designed to support micro and small enterprises, Mudra loans are available in three categories:
- Shishu: Up to ₹50,000
- Kishore: ₹50,001 to ₹5 lakh
- Tarun: ₹5 lakh to ₹10 lakh
- Women entrepreneurs can access these collateral-free loans, ideal for starting or expanding their businesses.
- Interest rates vary by lender and loan type, generally falling in the lower range due to government support.
2. Stand-Up India
- Specifically aimed at female, SC, and ST entrepreneurs launching greenfield ventures.
- Loan range: ₹10 lakh to ₹1 crore for manufacturing, services, or trading projects.
- Only one woman borrower per bank branch is permitted under the scheme.
3. Mahila Coir Yojana
- Tailored for women in the coir (coconut fiber) industry.
- Includes subsidies of up to 75% for equipment cost and up to 25% margin money assistance.
- Encourages women to set up coir-based nanoga enterprises with minimal startup expense.
4. Orient Mahila Vikas Yojana
- Offered by a national bank for women holding at least 51% ownership in their business.
- Loans range up to ₹25 lakh, with flexible repayment options.
- Collateral may not always be required depending on the applicant’s profile and business viability.
5. Dena Shakti Scheme
- Available to women entrepreneurs in agriculture, retail, manufacturing, or professional fields.
- Loan limits go up to ₹20 lakh for primary categories; micro-credit loans start around ₹50,000.
- Offers interest concessions relative to base lending rates and favorable repayment tenures.
6. Mahila Udyam Nidhi
- Supports women-led MSMEs with loans up to ₹10 lakh.
- Designed to fill equity gaps and revive potentially viable small-scale industrial units.
- Enjoys long repayment periods of around 10 years.
7. Stree Shakti Package (State Bank of India)
- Available to women-owned businesses after completing a government Entrepreneurship Development Program (EDP).
- Offers a small interest rate concession (e.g., 0.05%) on loans exceeding ₹2 lakh.
- Supports enterprises across retail, services, SSI, and professional activities.
8. Cent Kalyani Scheme
- Targets both new and established women entrepreneurs.
- Enables collateral-free loans up to ₹1 crore with zero processing fees.
- Applicable to women-owned businesses outside retail and education segments.
9. Udyam Shakti (MSME)
- National scheme offering mentorship, training, incubation facilities, and access to affordable loans.
- Supports women-owned enterprises up to ₹25 lakh, especially service-focused ventures.
10. CGTMSE (Collateral-Free Loans)
- Runs jointly by SIDBI and the Ministry of MSME.
- Offers collateral-free loans to MSEs, with partial government guarantee backing.
- Women entrepreneurs can access this facility if they register their enterprises via the MSME Udyam portal.
State-Level Opportunities & Special Schemes
Andhra Pradesh – Unnati Scheme
- Provides interest-free loans ranging from ₹30,000 to ₹5 lakh to women entrepreneurs, including DWCRA (Development of Women and Children in Rural Areas) members.
- Suitable for ventures like tailoring, handicrafts, home-based businesses, and jewelry making.
Andhra Pradesh – Stree Nidhi
- A community-based fund for women-led savings groups.
- Offers loans between ₹50,000 to ₹1 lakh for individual women, supported through Community Investment Funds (CIFs).
National-Level Inclusivity Programs
NSTFDC (For Scheduled Tribe Women)
- Under the Adivasi Mahila Sashaktikaran Yojana, provides loans up to 90% of project cost, capped at ₹2 lakh.
- Applies to ST women entrepreneurs engaging in micro-enterprises with concessional interest rates (e.g., 4%).
NBCFDC (For Backward Class Women)
- Offers loans through SHGs or direct term loans.
- Supports agriculture, transport, services, or small-scale businesses for women from backward classes.
Startup-Focused Financial Access
CGSS (Credit Guarantee for Startups)
- Provides collateral-free loan access to DPIIT-recognized women-led startups.
- Government bears up to 80% of the default risk, making it easier to get funded.
Telangana’s Women Entrepreneurship Platform (WEP)
- Managed through WE Hub, it offers funding access, mentorship, digital skills training, and market linkages to women across all tier levels.
Summary Table of Key Loan Options
| Scheme/Program | Loan Range | Key Features |
|---|---|---|
| Mudra Yojana | Up to ₹10 lakh | Collateral-free, tiered options |
| Stand-Up India | ₹10 lakh – ₹1 crore | Priority for women; greenfield enterprises |
| Mahila Coir Yojana | Equipment subsidy | Up to 75% equipment cost subsidy |
| Orient Mahila Vikas | Up to ₹25 lakh | Women with 51% ownership |
| Dena Shakti | Up to ₹20 lakh | Interest concession; diverse sectors |
| Mahila Udyam Nidhi | Up to ₹10 lakh | Equity support, long-term repayment |
| Stree Shakti (SBI) | >₹2 lakh | Interest concession after EDP training |
| Cent Kalyani | Up to ₹1 crore | Collateral-free, zero processing fee |
| Udyam Shakti | Up to ₹25 lakh | MSME facilitation, incubation, training |
| CGTMSE | Up to ₹5 crore | Collateral-free; partial guarantee |
| Unnati Scheme (AP) | ₹30k – ₹5 lakh | Interest-free; for rural women |
| Stree Nidhi (AP) | ₹50k – ₹1 lakh | Community funds, CIF-backed loan |
| Adivasi Mahila Sashaktikaran | Up to ₹2 lakh | 90% funding for ST women |
| NBCFDC | Varies | Term loans & SHG support for BC women |
| CGSS | DPIIT startups | Collateral-free; guarantee-based |
| WEP (Telangana) | Varies | Mentorship and access for women entrepreneurs |
Next Steps for Aspiring Women Entrepreneurs
- Register your enterprise on the Udyam MSME portal to become officially recognized.
- Complete relevant Entrepreneurship Development Programs (EDP) to unlock schemes like Stree Shakti.
- Evaluate your business needs — choose the right scheme based on loan size, sector, and ownership structure.
- Gather required documents: Aadhaar, bank account, business plans, ownership/identity proofs, Udyam registration, caste certificates (if applicable), etc.
- Apply via the appropriate bank, nodal agency, or government portal.
- Explore collateral-free options via CGTMSE or CGSS to reduce upfront requirements.
- For state-specific programs, reach out to your state women development corporations or district offices.
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Women entrepreneurs in India now enjoy a broad spectrum of funding support from both central and state governments — from subsidized loans and equity grants to collateral-free credit and start-up guarantees. With proper planning, documentation, and scheme selection, you can secure financing to launch, sustain, and scale your business confidently.