Indian women entrepreneurs contribute significantly to economic development. To encourage them, the Indian government has introduced multiple loan schemes. These schemes offer financial help to women entrepreneurs at low rates of interest.
Women entrepreneurs who want to establish new businesses can receive either sector-specific or collateral-free loans from particular schemes. Such women entrepreneurship loan schemes decrease financial obstacles and enable women to become independent through employment opportunities that result in economic development.
Read on to know about the government loan schemes for Indian women!
Mudra Yojana for Women:
The Pradhan Mantri Mudra Yojana (PMMY) offers collateral-free loans to women entrepreneurs in micro and small enterprises. This scheme is divided into three sections:
- Shishu for loans up to ₹50,000
- Kishore from ₹50,000 to ₹5 lakh
- Tarun from ₹5 lakh to ₹10 lakh.
This MSME women loan scheme of Mudra Yojana for women entrepreneurs provides financial assistance to operating businesses such as tailoring enterprises along with beauty parlours and small-scale manufacturing facilities.
Banks, together with National Banking Finance Companies and microfinance establishments, offer loan options to borrowers. Different investors assign different rates according to their assessment of applicants.
Through its simple access and collateral-free policy, the Mudra Yojana enables women to receive the funding needed for building and growing their businesses, thus developing their self-employment and stimulating economic development.
Bharatiya Mahila Bank Business Loan:
The Business Loan from Bharatiya Mahila Bank specifically targets manufacturing service and retail companies that are operated by female entrepreneurs. A business loan from this program can reach ₹20 crore according to specific business requirements for women applicants.
A scheme supports business expansion for women entrepreneurs while providing inexpensive interest rates together with adaptable payment terms. Different specialized loan products exist for individual industries which the bank offers.
The initiative advances female business expansion while creating new employment opportunities that drive India’s economic development. Women still receive the benefits previously offered by Bharatiya Mahila Bank through SBI’s ongoing women-centred schemes.
Annapurna Scheme:
Financial help through the Annapurna Scheme exists for women who operate in the food catering business to start or grow their ventures. Businesswomen operating in the food sector, including tiffin services, catering, and restaurants, can obtain financial help from ₹50,000 loans for their food enterprises.
A woman entrepreneur can use these funds to buy kitchen tools and equipment and establish her working capital needs. Women seeking Annapurna Scheme loans must pay back their debt for three years and sometimes need a guarantor.
The bank establishing the loan determines its rates of interest. Women who participate in this scheme establish long-term viable food-related businesses while becoming self-employed and achieving economic freedom. This scheme exists largely in public sector banking institutions.
Stree Shakti Package for Women Entrepreneurs
The Stree Shakti Package serves as a program dedicated to helping women entrepreneurs through financial assistance at discount rate interests. Female business owners who have at least 50% ownership stake in registered MSME enterprises can qualify for 0.5% reduced interest rate on loans exceeding ₹2 lakh.
The scheme provides financial support to multiple business sectors which include both manufacturing production businesses and commercial trading operations as well as service-based enterprises.
Businesswomen gain better opportunities to lead their companies since the package provides credit at affordable rates. This financial opportunity, which multiple public sector banks distribute, enables women business owners to expand their enterprises while generating jobs in India. It is one of the most popular women entrepreneurship loan schemes.
Dena Shakti Women Scheme:
This Dena Shakti Scheme offers funds to women industrialists working in agriculture production and retail business together with manufacturing operations and tiny companies. The scheme provides female applicants with financing up to ₹20 lakh for their business ventures subject to a 0.25% rate discount.
There are substantial advantages for MSME businesses in the market, such as access to working capital expenses as well as funds for business expansion through this scheme. The participating banks, which include the Bank of Baroda and previously comprised Dena Bank, present these financing opportunities.
Business loans for women entrepreneurs in India need to be accessible and affordable because this initiative supports economic independence along with job creation and the establishment of multiple women-run businesses.
Mahila Udyam Nidhi Women Scheme:
Women entrepreneurs can start or expand their small-scale business operations with the help of Mahila Udyam Nidhi Scheme from SIDBI. Through this scheme, women entrepreneurs receive financial support up to ₹10 lakh. This allows them to repay the loan within 10 years while benefiting from a post-loan delay period.
The scheme supports women working in three sections through soft loan programs with affordable interest rates. Such an initiative helps advance women-owned MSMEs by lowering economic obstacles and stimulating innovative thinking in businesses.
Through backing self-employment and business startups, the scheme drives economic progress while creating work opportunities which results in women securing financial security and business expansion. It is undoubtedly one of the best loan schemes for women entrepreneurs.
Udyogini Women Scheme:
This Udyogini Scheme builds financial capabilities for economically susceptible women entrepreneurs through the provision of ₹3 lakh in funding support. The scheme serves women between 18 and 55 years old who have family earnings at or below ₹1.5 lakh. The scheme specifically supports small businesses that operate within the agriculture sectors as well as retail and handicraft industries.
Financial institutions through banks present this scheme, which enables borrowers to acquire affordable loans with adjustable repayment plans. Lending institutions provide loan subsidies to widows and disabled women among certain categories of female borrowers.
Home Loan for Women
Many banks and housing finance companies offer home loans for women at lower interest rates. Government-backed schemes like Pradhan Mantri Awas Yojana (PMAY) provide additional interest subsidies for female homebuyers, especially for first-time buyers especially.
Women borrowers often enjoy benefits such as reduced processing fees, lower EMI options, and flexible repayment terms, making homeownership more accessible and affordable.
Related Read: When applying for a loan, both credit score and income play a crucial role. Learn more in our detailed comparison: Credit Score vs. Income – What Matters for Loan Approval?
Personal Loan for Women
Several banks and NBFCs provide personal loans for women to meet emergency financial needs, education, travel, or medical expenses. These loans come with low-interest rates, quick approval, and minimal documentation.
Some lenders also offer exclusive personal loan schemes for self-employed women and salaried professionals, helping them achieve financial independence without restrictions on fund usage.
Government Subsidies for Women Entrepreneurs
Apart from government loans for women, various subsidies exist to encourage women-led businesses. Programs such as Stand-Up India and the Credit Guarantee Fund Scheme for MSMEs (CGTMSE) offer financial assistance, reducing collateral requirements and promoting entrepreneurship.
The scheme promotes female financial inclusion through self-reliance, which results in business sustainability and enhanced livelihood opportunities.
Related Read: If you’re exploring government loan options, check out our Comprehensive Guide: PMEGP vs. Mudra Loan to understand which scheme suits your business needs.
The table below summarizes the best loan schemes for Indian women entrepreneurs.
| Scheme Name | Loan Amount | Purpose | Where to Apply |
| Mudra Yojana | ₹50K – ₹10L | Small businesses | Banks, NBFCs, MFIs |
| Bharatiya Mahila Bank | Up to ₹20Cr | Business expansion | SBI, PSU Banks |
| Annapurna Scheme | Up to ₹50K | Food catering | PSU Banks |
| Stree Shakti Package | Up to ₹25L | Women MSMEs | SBI, PSU Banks |
| Dena Shakti Scheme | Up to ₹20L | Agri, retail, micro | Bank of Baroda, Other Banks |
| Mahila Udyam Nidhi | Up to ₹10L | MSMEs, startups | SIDBI |
| Udyogini Scheme | Up to ₹3L | Small businesses | Karnataka Bank, Other Banks |
FAQ’s
How can I apply for a Stand-Up India loan for my business?
The Stand-Up India Scheme provides loans from ₹10 lakh to ₹1 crore for women entrepreneurs setting up new businesses in manufacturing, services, or trading sectors. You can apply through the official portal or visit a bank branch for assistance.
🔗 Apply here: standupmitra.in
Does the Tamil Nadu government offer any financial schemes for women entrepreneurs?
Yes, the NEEDS Scheme (New Entrepreneur cum Enterprise Development Scheme) in Tamil Nadu provides financial assistance, subsidies, and training for new entrepreneurs, including women, to help them establish businesses.
🔗 More details: msmetamilnadu.tn.gov.in
Conclusion
The government loan schemes for Indian women are an absolute game changer. The schemes offer low-cost financing options and various payment flexibility tools in addition to reduced interest rates. Women benefit from these loan schemes as they can easily start or expand their business with these loan schemes. The low interest loans for women in India enable women to participate in economic activities since they bring financial bridges to various industries, including manufacturing, retail, and services.
