Empowering Women Entrepreneurs in India: Top 6 Government Loan Schemes

In today’s evolving financial landscape, women entrepreneurs are rapidly emerging as a powerful force driving India’s economic growth. Recognising their potential, the government has introduced a variety of loan schemes aimed at empowering women by providing the essential financial support needed to launch and expand their businesses.

Here’s an overview of some key government-backed loan schemes designed specifically to boost women entrepreneurship:

Annapurna Scheme

Targeted at women involved in food processing and catering businesses, the Annapurna Scheme offers loans up to ₹50,000. Borrowers can repay this amount over 36 installments. The scheme requires collateral in the form of assets and a guarantor's approval, making it a suitable option for women looking to build or grow small-scale food enterprises.

Pradhan Mantri Mudra Yojana (PMMY)

Under the Mudra Yojana, women entrepreneurs can avail loans up to ₹10 lakh without the need for collateral or security. The scheme simplifies eligibility criteria, making it easier for small and medium enterprises to access much-needed capital to fuel their growth and innovation.

Stand Up India Scheme

Launched by the Ministry of Finance, the Stand Up India Scheme focuses on promoting entrepreneurship among women, Scheduled Castes (SC), and Scheduled Tribes (ST). It facilitates bank loans ranging from ₹10 lakh to ₹1 crore for setting up greenfield enterprises in manufacturing, services, trading, and agriculture-related sectors.

Each bank branch is mandated to extend loans to at least one woman, SC, or ST entrepreneur. For business entities, at least 51% of ownership must be held by one of these categories.

Stree Shakti Yojana

Introduced in 2000, the Stree Shakti Yojana encourages women entrepreneurs by offering financial assistance with a concessional interest rate of 0.05% less on loans exceeding ₹2 lakh. To qualify, applicants must participate in the Entrepreneurship Development Program (EDP), ensuring they receive both funding and skill development.

Cent Kalyani Scheme

Backed by the Central Bank of India as part of the Startup India initiative, the Cent Kalyani Scheme supports women entrepreneurs who own micro or small enterprises defined under the MSME Act, 2006. This scheme offers tailored financial solutions to nurture both new and established women-led businesses.

Udyogini Scheme

Designed to economically empower women, the Udyogini Scheme offers loans up to ₹1 lakh at lower interest rates compared to conventional lenders. Targeting women entrepreneurs with an annual income below ₹40,000, this scheme makes entrepreneurial ventures more accessible and affordable.

Also Read: Karnataka’s Udyogini Scheme Boosts Women Entrepreneurship Through Subsidised Loans

Conclusion

The Government of India’s dedicated loan schemes for women entrepreneurs mark a significant step toward fostering inclusive growth and empowering women in business. Aspiring women entrepreneurs are encouraged to explore these schemes to access affordable funding and support, turning their business ideas into successful ventures.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.