In recent years, India has witnessed a significant rise in women-led startups and small businesses. To support and encourage this trend, the Indian government offers various loan schemes tailored specifically for women entrepreneurs, with easy terms, low interest rates, and collateral-free options. Whether you’re starting a business, expanding an existing one, or modernizing operations, here are the top government-backed loan schemes for women entrepreneurs in India you should know in 2025.

Government Business Schemes for Female Entrepreneurs in India

Women’s business loans from the Government of India are empowering female entrepreneurs by offering easy access to finance, low interest rates, and collateral-free options. Key schemes include;

• Pradhan Mantri Mudra Yojana (PMMY): Loans up to ₹10 lakh for micro and small businesses, categorized into Shishu, Kishore, and Tarun.

• Stand-Up India Scheme: Loans between ₹10 lakh and ₹1 crore for SC/ST and women-led greenfield enterprises.

• Udyogini Scheme: Financial aid and subsidies up to ₹3 lakh for women in Karnataka to start or grow businesses.

• Cent Kalyani & Dena Shakti: Bank-specific schemes providing low-interest loans for business setup and expansion.

• Annapurna Yojana: Loans up to ₹50,000 for women in the food and catering industry.

• Stree Shakti Yojana: Interest concessions and high loan limits for EDP-certified women.

• TREAD & Women Enterprise Development (NEDFCL): Credit and training support for women in non-farm sectors, especially in Northeast India.

These schemes aim to boost women-led startups, promote financial independence, and strengthen India’s entrepreneurial ecosystem. Below, check who is eligible for the scheme and how to apply under the Women’s empowerment business loans.

1. Pradhan Mantri Mudra Yojana (PMMY)

Overview:
PMMY is a flagship scheme under the Micro Units Development and Refinance Agency (MUDRA) initiative, offering loans to non-corporate, non-farm small/micro enterprises.

Key Features:

• Loan Amount: Up to ₹10 lakh

• Loan Categories:

  • Shishu: Up to ₹50,000

  • Kishore: ₹50,001 to ₹5 lakh

  • Tarun: ₹5 lakh to ₹10 lakh

• Collateral: Not required

• Interest Rates: Lower rates for women borrowers

• Eligibility: Women aged 18 to 65 years owning small businesses

• Purpose: New business setup, expansion, or modernization

Where to Apply:
Available through public/private banks, NBFCs, and microfinance institutions.

2. Stand-Up India Scheme

Overview:
Launched on April 5, 2016, the Stand-Up India Scheme promotes entrepreneurship among SC/ST and women entrepreneurs by providing bank loans for greenfield projects.

Key Features:

• Loan Amount: ₹10 lakh to ₹1 crore

• Sectors Covered: Manufacturing, services, trading, and agriculture-allied activities

• Ownership Requirement: Minimum 51% stake held by women or SC/ST individuals

• Eligibility: First-time entrepreneurs from eligible categories

• Collateral: May be required depending on the project

Mandatory Inclusion:
Each bank branch is required to support at least one SC/ST and one woman entrepreneur.

3. Udyogini Scheme (Karnataka Government)

Overview:
A state-level scheme by the Karnataka government aimed at promoting self-employment among women through financial assistance.

Key Features:

• Loan Amount: Up to ₹3 lakh

• Eligibility: Women from economically weaker sections

• Subsidies: Available based on income level and business type

• Support Provided: Loan disbursal, entrepreneurship training, and technical guidance

Disbursal Channel:
Loans are disbursed through banks, cooperative banks, and RRBs.

4. Cent Kalyani Scheme (Central Bank of India)

Overview:
Designed specifically for women engaged in MSMEs, retail trade, and agriculture-related activities.

Key Features:

• Loan Purpose: Start, expand, or modernize existing business

• Loan Type: Working capital and term loan

• No Collateral Required

• Interest Rate: Attractive rates with minimal processing fees

5. Dena Shakti Scheme

Overview:
Offered by Dena Bank (now merged with Bank of Baroda), this scheme supports women in agriculture, manufacturing, and small-scale industries.

Key Features:

• Loan Limit: Up to ₹20 lakh

• Interest Concession: 0.25% for eligible women entrepreneurs

• Eligibility: Women with proven business plans and creditworthiness

6. Annapurna Yojana

Overview:
Tailored for women in the food and catering industry, Annapurna Yojana offers working capital for purchasing kitchen equipment and raw materials.

Key Features:

• Loan Amount: Up to ₹50,000

• Repayment Tenure: Flexible, with a grace period

• Collateral: May be required, depending on lender policies

7. Mahila Udyam Nidhi (Punjab National Bank)

Overview:
Launched by PNB, this scheme aims to bridge the equity gap for women entrepreneurs by offering financial support for business development.

Key Features:

• Loan Support: For small-scale ventures and modernization

• Repayment: Up to 10 years

• Collateral: Depends on business profile

8. Stree Shakti Yojana

Overview:
For women who have completed Entrepreneurship Development Programmes (EDP), this scheme provides additional interest concessions and higher loan amounts.

Key Features:

• Loan Amount: Up to ₹50 lakh

• Interest Concession: 0.05% on loans exceeding ₹2 lakh

• Eligibility: Women with EDP certification

9. TREAD Scheme (Trade Related Entrepreneurship Assistance and Development)

Overview:
Aimed at economically disadvantaged women, TREAD offers credit, training, and assistance through NGOs.

Key Features:

• Focus: Non-farm activities

• Support: Financial aid + skill development

• Partners: NGOs act as facilitators between banks and beneficiaries

10. Women Enterprise Development Scheme (NEDFCL – Northeast India)

Overview:
Launched by the North Eastern Development Finance Corporation, this scheme promotes women-led ventures in the northeastern states.

Key Features:

• Loan Assistance: For setting up new projects or expanding existing ones

• Eligibility: Women from the North Eastern Region

• Focus: Region-specific industrial and service sectors

Final Thoughts

India’s women entrepreneurs are transforming the nation’s economy with innovation, resilience, and leadership. With support from these government loan schemes, aspiring and established women business owners can overcome financial barriers and build sustainable enterprises.

Here check the full list of Women Empowerment Loan Schemes

If you’re a woman looking to launch or expand your business, these schemes offer the perfect starting point with easy access to funding and expert guidance. Visit your nearest bank branch or check the respective scheme’s website for application procedures.