India is home to over 6.3 crore micro, small, and medium-sized enterprises (MSMEs), of which women lead 20%. This shows that women are an important part of India’s economic growth. However, they still face difficulty when it comes to business financing. This is why the government of India offers a specialised loan for women entrepreneurs.
With different schemes and loans, you can now get a business loan and financial assistance to both start and grow your business. In this blog, we will understand the top women entrepreneurship schemes in India that you can access.
Women in India have traditionally faced systematic, social and economic challenges. All these challenges hinder their ability to start, sustain and scale businesses. One of the most common barriers that prevents women entrepreneurs from starting a business and creating employment is a lack of funds.
Traditional lenders follow a strict eligibility criterion that many women entrepreneurs cannot meet. This is why the government of India has introduced a number of schemes to empower women entrepreneurs.
Supporting women entrepreneurs is not just about giving loans or financial help. It’s about building a strong, balanced, and growing economy. When women start businesses, they create jobs, support families, and boost local communities. This, in turn, adds to economic growth and development.
Here are key schemes and grants available for women entrepreneurs in India:
The key objective of the StandUp India Scheme is to offer business loans to SC/ST and women entrepreneurs. The scheme offers funds for women’s startups in India to assist them in establishing new enterprises in manufacturing, trading, or service units.
The Mudra Yojana is another Mahila Loan Scheme in India that empowers women who own small or micro-businesses. It comes under the umbrella of the Pradhan Mantri Mudra Yojana (PMMY). Women can avail of loans under four categories: Shishu, Kishor, Tarun, and Tarun+, based on the development stage of the business.
Under this scheme, lenders (banks & NBFCs) also offer lower rates of interest for women applicants.
The Annapurna Scheme offers financing to start food-based businesses such as catering, tiffin centres, or small restaurants. Under the scheme, you are eligible to get loans of up to ₹50,000 for purchasing kitchen equipment, cookware, or raw materials.
The Women Startup India Program empowers women entrepreneurs within the backdrop of innovation and entrepreneurship. The program allows women to start businesses in different sectors like technology, manufacturing, services, and social impact.
In this scheme, women entrepreneurs receive a 0.05% concession on the loan amount above ₹2 lakh with other benefits. This is an open opportunity to all the ambitious women business owners who are willing to start their businesses. One of the requirements of this Nari Shakti loan is the enrolment of these women entrepreneurs in the Entrepreneurship Development Program (EDP).
This scheme is centred on the establishment of skill-based self-employment by women entrepreneurs. This scheme is applicable to both urban and rural residents. You can get a loan subsidy of up to 15% of the project cost, with a limit of ₹12,500 per borrower.
The Udyogini Scheme is a Mahila Loan scheme that empowers women entrepreneurs in India by giving them financial support to start or grow small-scale businesses. Different state Women Development Corporations implement the scheme and provide subsidised loans and support services to women, especially those in economically weaker sections.
Every scheme has different requirements and eligibility criteria. However, here are the general eligibility criteria that can be applied to most Mahila Loan schemes and grants:
Here are the key benefits of women’s government schemes that help women both start and scale their businesses:
Here are the steps you must follow to apply for a Mahila Loan Scheme:
Identify the Right Scheme: Every Mahila Loan Scheme serves a unique purpose. For example, the Annapurna Scheme offers loans only for catering businesses, whereas StandUp India only offers loans for new enterprises in manufacturing, trading, or service units.
Check Eligibility: Check the eligibility for age, type of business, ownership, limit on income, etc, of the chosen scheme.
Prepare Required Documents: Most schemes require:
Submit the Application: Apply for the Nari Shakti loan or subsidy online via the official portal or by visiting the bank. Submit the Nari Shakti loan application after attaching all the documents.
Sanction and disbursal: After approval, the money (loan/grant) is disbursed into your account.
Women are the backbone of India’s economy. They are not just adding to the GDP but also creating jobs for many individuals. This is why the government launched different schemes for women in India. However, to make the most of it, you must ensure that you choose the right Mahila Loan Scheme.
At DMI Finance, we offer a low-cost business loan for women entrepreneurs to help them scale their businesses. If you are struggling to get a loan, apply for a business loan with DMI Finance and get up to ₹25 lakh. It is collateral-free and low-interest.
1. Can I apply for more than one women’s entrepreneurship scheme at a time?
Yes, you can apply for more than one Mahila Loan Scheme if your business qualifies under each program’s eligibility criteria.
2. Do I have to furnish business experience to get approval for a Mahila Loan Scheme?
No, beginners are also welcome if they can show a clear and viable business plan.
3. How long will it take me to get approved for a Nari Shakti loan?
Sanction would typically take 7–15 working days, subject to the bank and your document verification.
4. Can rural women apply for the Stand-Up India scheme?
Yes, rural women can also apply and approach the local bank branches or Common Service Centres (CSCs).
5. Can I use a MUDRA loan to expand a current home-based business?
Yes, you can apply for the MUDRA loan and use the funds for new or current small businesses, including home businesses.
6. Do Women StartUp India loans or grants require a guarantor?
Usually, no, but your bank can ask for one if your loan amount is higher or your credit history is poor.
7. Are there interest rate concessions under the Mahila Loan Scheme?
Yes, most banks provide 0.25% to 1% less interest to women borrowers under these schemes.
8. Which documents are required to avail an Annapurna loan?
You would require proof of ID, proof of a business plan, and an estimated cost breakdown of your food business.
9. Can a self-help group (SHG) provide a loan for women entrepreneurs?
Yes, SHGs and women cooperatives can apply as a group if they are eligible.
10. Do the loans offer any business training or mentoring support?
Yes, Women Startup India and Stand-Up India schemes also include skill workshops and mentoring to empower women to run their enterprises more efficiently.
