Top 6 Government Loan Schemes for Women Entrepreneurs in 2025

In recent years, women entrepreneurs have emerged as a powerful force in India’s economic growth, contributing to innovation, job creation, and community development. From running small enterprises to leading high-impact startups, their role in shaping the nation’s business landscape is stronger than ever.

Recognising this potential, the Indian government has introduced several government schemes for women entrepreneurs in India to provide easier access to credit, reduce financial barriers, and empower women-led businesses. These dedicated loan schemes offer competitive interest rates, flexible repayment options, and tailored benefits to support everything from business expansion to technology upgrades.

Such government loans for women entrepreneurs are not just a source of capital - they act as catalysts for empowerment, enabling women to scale operations, explore new markets, and create sustainable economic impact. In 2025, these schemes remain a vital tool for promoting inclusive growth and fostering an environment where women-led businesses can thrive.

Top 6 Government Loan Schemes for Women Entrepreneurs in India (2025)

Government loan schemes for women in 2025 are specially designed financial programs that provide capital, subsidies, and concessional interest rates. These loans for women business 2025 empower female entrepreneurs to start, expand, and sustain ventures under dedicated women entrepreneur schemes 2025.

Also Read: All You Need to Know About a Business Loan

Annapurna scheme

The Annapurna scheme supports women looking to start or expand food-related businesses such as catering services or small food outlets. Under this scheme, eligible women can receive loans up to INR 50 lakh. The funds can be used for purchasing equipment, raw materials, or working capital.

Key benefits:

• Loan up to INR 50 lakh
• Flexible repayment options
• No collateral is required for small amounts

If you're passionate about the food industry, the Annapurna scheme can provide the financial boost you need.

Stree Shakti Yojana

The Stree Shakti Yojana is aimed at empowering women entrepreneurs in rural and semi-urban areas. It offers lower interest rates for eligible women, particularly those who are part of self-help groups (SHGs).

Key benefits:

• Interest concession of 0.5%
• Simplified documentation process

Stand-up India scheme

The Stand-up India scheme’s aim is to facilitate businesses by women and people from SC/ST communities. The scheme provides loans that enable people belonging to these groups to start and develop their ventures in manufacturing, services, and trade.

Key benefits:

• Loan amounts between INR 10 lakh and INR 1 crore
• Long repayment tenure of up to 7 years
• Minimal collateral requirements

Women can use the Stand-up India scheme to establish their dream businesses and contribute to the economy.

Cent Kalyani Scheme

The Cent Kalyani scheme by the Central Bank of India is another excellent option for women entrepreneurs. It provides financial assistance without requiring collateral.

Key benefits:

• Loans up to INR 1 crore
• No processing fees

Udyogini Scheme

The Udyogini scheme is specifically designed to promote women’s entrepreneurship by offering financial support for small and medium enterprises.

Key benefits:

• Loan amounts up to INR 3 lakh
• Low interest rates for economically weaker sections
• Easy eligibility criteria

Mudra Yojana

The Mudra Yojana is a well-known scheme offering financial support to micro and small enterprises. Women entrepreneurs can access loans under three categories: Shishu (up to INR 50,000), Kishor (up to INR 5 lakh), and Tarun (up to INR 10 lakh).

Key benefits:

• Loans without collateral
• Competitive interest rates
• Flexible repayment options

Mudra Yojana can be used by women to cater to different business requirements, such as buying machines and expanding operations.

Alternative Funding Options for Women Entrepreneurs

Apart from government schemes, several financial institutions offer personal loans for women. These loans are designed to provide quick access to funds for both business and personal needs.

Benefits of personal loans for women:

• Quick approval process
• Flexible repayment terms
• Lower interest rates
• No restriction on usage

If you're urgently in need of funds, a personal loan company can be your go-to solution.

1. Bank Loans

Banks remain a primary source of financing for women entrepreneurs, offering business loans with competitive interest rates, flexible repayment terms, and collateral-free options under special schemes. These loans can fund working capital, equipment purchase, and expansion plans, enabling women-led businesses to grow sustainably in competitive markets.

2. Microfinance Institutions (MFIs)

MFIs provide small-ticket loans to women entrepreneurs, especially in rural and semi-urban areas, with minimal documentation and group-based lending models. They help women start or scale micro-businesses, supporting self-reliance and community development where traditional banking access may be limited.

3. Non-Banking Financial Companies (NBFCs)

NBFCs offer flexible business loan products with quicker approvals and customised repayment schedules. They cater to women-led enterprises that may not meet strict bank eligibility norms, providing funding for diverse needs like inventory purchase, marketing campaigns, or technology upgrades.

4. Angel Investors and Venture Capitalists (VCs)

Angel investors and VCs fund women-led startups with high growth potential in exchange for equity. Beyond capital, they offer mentorship, industry connections, and strategic guidance, helping women entrepreneurs scale quickly and compete in larger markets.

5. Crowdfunding Platforms

Online crowdfunding platforms allow women entrepreneurs to raise funds from the public by showcasing their business ideas or products. This method not only generates capital but also validates market interest and builds an early customer base without traditional debt obligations.

6. Corporate Social Responsibility (CSR) Funds

Many corporates allocate part of their CSR budgets to support women-led businesses through grants, training programs, and seed capital. These funds often focus on social impact ventures, empowering women while addressing community and environmental challenges.

7. Self-Help Groups (SHGs) and Cooperatives

SHGs and cooperatives pool resources among members to provide small loans at low interest rates. This community-based model fosters financial discipline, mutual support, and collective growth, enabling women to fund small-scale enterprises or income-generating activities.

8. Grants from NGOs and International Agencies

NGOs and global organisations like UN Women or World Bank offer grants and capacity-building programs for women entrepreneurs. These non-repayable funds help kickstart ventures, scale operations, or implement projects with social and economic impact, especially in underserved regions.

Also Read: Top Business Loans for Women in MSME

How to Apply for Government Loans for Women Entrepreneurs

Applying for a government loan for women under various government schemes for women entrepreneurs in India requires careful preparation and adherence to eligibility criteria. The process typically involves verifying scheme-specific requirements, preparing necessary documents, and submitting applications through authorised channels like banks or dedicated online portals.

1. Eligibility Verification

Review the eligibility criteria of the selected women entrepreneur scheme 2025, including age, business type, turnover limits, and sector restrictions. Ensure your business activity aligns with the scheme’s objectives.

2. Gather Required Documentation

Prepare documents such as identity proof (PAN, Aadhaar), business registration certificate, Udyam Registration (for MSME recognition), project report, income proof, and bank statements. Some schemes may require additional licenses or NOCs.

3. Choose the Application Channel

• Bank Branches – Visit the nearest branch of the participating bank for application submission and assistance.
• Online Portals – Apply via portals like the Stand-Up India scheme website, SIDBI portal, or state government MSME portals for faster processing.

4. Submit Application & Follow Up

Complete the application form with accurate details, attach supporting documents, and submit. Track application status regularly and provide clarifications if requested.

Tips to Increase Approval Chances

• Get Udyam Registration – Strengthens MSME status and increases eligibility for multiple government schemes.
• Prepare a Strong Business Plan – Clearly outline your business model, revenue projections, and repayment ability.
• Maintain Good Credit History – A healthy credit score boosts loan approval probability.
• Utilise Government Helplines – Use official helpdesks or facilitation centres to ensure accurate filing and avoid errors.

Benefits of Government Loan Schemes for Women Entrepreneurs

Government schemes for women entrepreneurs are designed to provide financial assistance, business stability, and long-term growth opportunities. A government loan for women not only reduces funding barriers but also encourages more women to enter and thrive in entrepreneurship. These schemes combine affordability, ease of access, and targeted support to promote business expansion and economic empowerment.

Key Benefits

• Low Interest Rates – Women-specific schemes often have interest rates lower than standard business loans, reducing the repayment burden.
• Collateral-Free Options – Many government loan programs do not require women entrepreneurs to pledge assets, making financing more accessible.
• Flexible Repayment Tenure – Customised repayment schedules allow women-led businesses to manage cash flow effectively.
• Government Subsidies – Certain schemes offer subsidies on interest payments or partial funding support to ease business setup costs.
• Empowerment & Economic Growth – Access to capital helps women scale their ventures, generate employment, and contribute significantly to India’s economy.

Empowering Women Entrepreneurs with Government Loans

Government loan schemes and personal loans for women entrepreneurs are vital tools for financial empowerment. Whether you're starting a new venture or expanding an existing one, there are numerous options available to meet your needs. From the Annapurna scheme to the Udyogini scheme, these business loans for women in India provide a reliable foundation for success.

Apply now for a loan to take advantage of these schemes and unlock your business potential!

Moreover, An Buisness Loan EMI Calculator can help you achieve this clarity by telling you the exact amount you need to pay as your EMIs per month.

FAQs

Q.1. Which loan is best for women entrepreneurs?

A. Some of the top loans for women entrepreneurs include the Pradhan Mantri Mudra Yojana (PMMY), Stree Shakti Yojna, Udyogini Scheme, and Annapurna Yojna.

Q.2. What is the new scheme for women introduced in 2024?

A. The Indian government introduced the Mahila Samman Scheme in 2024 to support female investors. It was introduced in the Union Budget 2024.

Q.3. What is the PM loan scheme for women entrepreneurs?

A. The Prime Minister Loan Scheme for Ladies is a government initiative to provide financial support to female business owners. The scheme offers loans at lower interest rates and flexible repayment options for women.

Q.4. Can I open the Mahila Samman scheme?

A. Yes, you can open a Mahila Samman Savings Certificate Scheme (MSSC) until March 31, 2025. This is basically a 2-year scheme that was launched in April 2023.

Q.5. Which loan has a 50% subsidy?

A. There are several loan schemes in India that offer a 50% subsidy, such as – the Udyogini Scheme, the Pradhan Mantri Gramin Bhandaran Yojana (PMGBY), the Minority Vehicle Loan Scheme, the Soil Conservation Loan Scheme, etc.

Disclaimer:

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