Top Government Schemes for Women Entrepreneurs in India

• Government loans for women support first-time and small entrepreneurs with easy access to finance, reducing the need for collateral.
• Schemes like Mudra Yojana, Udyogini, and TREAD focus on rural inclusion, skill-building, and low-cost funding for business growth.
• Beyond finance, women-focused government schemes provide mentoring, incubation, and market access to help you grow sustainably.

India has 63 million micro, small, and medium enterprises (MSMEs), of which around 20% are women-owned, employing 22 to 27 million people. This reflects a growing shift towards gender inclusivity in entrepreneurship. However, access to finance and networks remains a hurdle. Recognising this, the Indian government has introduced several targeted schemes to support women entrepreneurs.These government schemes for women's business ventures aim to support and empower you as a woman entrepreneur, helping you turn ideas into sustainable businesses. Whether you are just starting or looking to grow, these government loan schemes for ladies offer tailored financial support.This article covers various government schemes for women-led businesses, focusing on their key highlights and offerings. But to start things off, we assess the challenges faced by women entrepreneurs in the country.

The success of women entrepreneurs in India is limited due to several obstacles. Let's have a look at some of the challenges faced by women entrepreneurs:

• Limited Finance: Most women-owned businesses struggle to access credit. According to the World Economic Forum, only 0.3% of Venture Capital funding went to women-led Indian startups in 2023. Women-led MSMEs (micro, small and medium enterprises) also face similar struggles in terms of securing funding.
• Access to Professional Networks: Limited access to professional networks is another challenge faced by women in business. According to a Google-Bain study, 49% of women entrepreneurs lack professional support in India due to restricted access to formal and informal professional networks.
• Lack of Training: Many women entrepreneurs cite limited business training as a key barrier to scaling operations.

The Central and State governments have started offering government loans for women’s entrepreneurship. These loans and assistance schemes are designed to encourage more women to join the business world and tackle the existing challenges mentioned above. Here’s a list of some top government loans for women: Mudra Yojana Scheme Mudra Yojana is one of the most impactful government loans for women entrepreneurs planning to launch micro or small-scale businesses like tailoring units, tuition centres, and beauty salons. The scheme removes the barrier of collateral, helping first-time business owners get funding under structured loan categories.

Highlights:

• Shishu (up to ₹50,000), Kishor (₹50,000–5 lakhs), Tarun (₹5–10 lakhs). The new Tarun Plus category offers loans of up to 20 lakhs to those who have successfully repaid Tarun category loans.
• No collateral for loans under ₹10 lakhs.
• Targeted at small-scale and home-run businesses.

Mahila Coir Yojana

For women in coastal and rural regions, this is a unique government scheme for women’s business in coir production. Post-training, women receive subsidies to buy modern spinning equipment. If you are 18 or older and want to set up a sustainable coir-based business, this scheme offers a solid starting point. It boosts both skill development and enterprise creation.

Highlights:

• 75% subsidy on spinning machinery post-training.
• Covers 25% of the total project cost.
• Aimed at rural women aged 18 and above.

Stand Up India is a flagship scheme offering targeted government loans for women and marginalised groups. If you are a first-generation woman entrepreneur planning to enter the manufacturing or trading sectors, you can apply for benefits under this government scheme for women entrepreneurs. Under this scheme, every bank branch has to support at least one woman-led business to establish a greenfield enterprise. Highlights:

• Loan amounts from ₹10 lakhs to ₹1 crore.
• For starting new businesses or scaling existing ones.
• Includes handholding support through SIDBI (Small Industries Development Bank of India) and partner agencies.

Udyogini Scheme

The Udyogini Scheme, run by the Government of Karnataka, is designed to support women from economically weaker sections who want to start or expand their businesses. This scheme addresses the common challenge of limited access to credit by offering financial assistance without interest for eligible applicants. Through govt loans for women’s entrepreneurship, this scheme helps women become self-reliant, especially in rural and semi-urban areas. Highlights:

• Interest-free loans of up to ₹3,00,000 for eligible women entrepreneurs.
• Women in the manufacturing sector can access loans up to ₹50,000.
• Focuses on income generation through self-employment for rural and semi-urban women.

Mahila Udyam Nidhi Scheme Implemented by SIDBI, this scheme bridges the credit gap in MSME financing for women. This government scheme for women entrepreneurs provides soft loans for new ventures and business expansions. You can consider this loan scheme if you’re setting up a small manufacturing or service business. Highlights:

• Loan amount up to ₹10 lakhs.
• Repayment tenure of up to 10 years.
• Supports MSME-level entrepreneurs and startups.

TREAD is a specialised government scheme for women’s businesses, designed to address both funding and skill gaps. If you plan to set up a business but lack training or finance, this scheme helps fund your project via NGOs (non-government organisations) and lending institutions. It blends grant-based and loan-based support. Highlights:

• The government grant covers up to 30% of the project cost.
• The remaining 70% is funded through loans from approved institutions.
• Provides training, mentoring, and business guidance.

This initiative by the Ministry of Skill Development and Entrepreneurship helps micro-entrepreneurs—especially women—develop, launch, and expand businesses. Active in Assam, Rajasthan, and Telangana, it provides training, incubation, and scaling opportunities.This is one of the key government schemes for women's business , particularly for those with limited exposure to networks and funding. By nurturing early-stage ventures, the scheme enhances access to structured support, resources, and government loans for women . Key Highlights:

• Supports early-stage women entrepreneurs with incubation and training for growth.
• Bridges access gaps through tailored government loan schemes for ladies .
• Aims to increase women's participation in enterprise building, especially in Tier-2 and Tier-3 cities.

Govt loans for women’s entrepreneurial developmenthave opened up many possibilities for those who once faced barriers to entry. These schemes make securing funds, scaling operations, and accessing mentorship easier. When you know where to look, taking your business idea forward with confidence and support becomes easier.To find flexible business loan solutions beyond government schemes, you can also explore options offered by Aditya Birla Capital. Their offerings support women entrepreneurs across industries with easy eligibility requirements and pocket-friendly interest rates! Also Read: Top 5 Government Business Loan Schemes in India