India is witnessing a surge in women-led businesses across sectors. However, access to capital remains a major barrier. To address this, both government schemes and private lenders offer business loans tailored for women entrepreneurs in India. These loans are designed to foster women’s economic empowerment, promote financial inclusion, and drive entrepreneurship.
In this guide, we explore the best loans for women entrepreneurs in India, key schemes, eligibility, benefits, and how to apply.
🔍 Why Special Loans for Women Entrepreneurs?
Women entrepreneurs often face:
- Limited access to collateral
- Lack of financial literacy
- Gender-based lending biases
To bridge this gap, low-interest, collateral-free loans, flexible repayment terms, and government-backed schemes are now widely available to promote inclusive entrepreneurship.
🏦 Top Government Loan Schemes for Women Entrepreneurs in India
1. Stand-Up India Scheme
Launched by: Government of India
Target Group: SC/ST and women entrepreneurs
| Feature | Details |
|---|---|
| Loan Amount | ₹10 lakh – ₹1 crore |
| Purpose | Greenfield projects in manufacturing, services, or trading |
| Collateral | May be covered under CGTMSE |
| Repayment Tenure | Up to 7 years |
| Margin Money | Minimum 10%, bank may finance the rest |
✅ Why it’s good: Large funding support with government backing
2. Mudra Yojana (PMMY) – For Women
Launched by: Pradhan Mantri MUDRA Yojana
Under: Micro Units Development and Refinance Agency (MUDRA)
| Category | Loan Range |
|---|---|
| Shishu | Up to ₹50,000 |
| Kishore | ₹50,001 – ₹5 Lakh |
| Tarun | ₹5 Lakh – ₹10 Lakh |
✅ Why it’s good:
- Collateral-free loans
- Ideal for startups and microenterprises
- Offered by NBFCs, banks, and MFIs
💡 Note: Many banks have special Mudra schemes for women with discounted interest.
3. Mahila Udyam Nidhi Scheme – SIDBI
Launched by: Small Industries Development Bank of India (SIDBI)
Objective: Support women in setting up small-scale ventures
| Feature | Details |
|---|---|
| Loan Amount | Up to ₹10 lakh |
| Repayment Tenure | 10 years with moratorium |
| Interest Rate | Competitive (based on borrower profile) |
✅ Why it’s good: Flexible terms and targeted for new entrepreneurs
4. Annapurna Scheme – For Women in Food Business
Offered by: State Bank of India (SBI), Bharatiya Mahila Bank (merged with SBI)
| Feature | Details |
|---|---|
| Loan Amount | Up to ₹50,000 |
| Purpose | Setting up food catering/tiffin businesses |
| Repayment Tenure | Up to 3 years |
| Collateral | Required (co-guarantor, assets, etc.) |
✅ Why it’s good: Specific for women in the food sector
5. Cent Kalyani Scheme – Central Bank of India
| Feature | Details |
|---|---|
| Target Group | Women in micro/small businesses, agriculture, retail |
| Loan Amount | Up to ₹100 lakh |
| Collateral | No collateral required |
| Interest Rate | Concessional |
| Processing Fee | NIL |
✅ Why it’s good: No processing fees or collateral, suitable for working capital needs
6. Udyogini Scheme – For Rural Women
Offered by: Women Development Corporation (various states), Punjab & Sind Bank, Saraswat Bank
| Feature | Details |
|---|---|
| Loan Limit | Up to ₹3 lakh |
| Income Limit | ₹1.5 lakh family income (rural women) |
| Interest Rate | Subsidized |
| Purpose | Small business, retail, agriculture, trade |
✅ Why it’s good: Women from economically weaker backgrounds benefit the most
💼 Private & Bank Loan Options for Women Entrepreneurs
1. HDFC Bank – SmartUp for Women Entrepreneurs
- Tailored for startups and small businesses
- Digital account, overdraft facility, and working capital loans
- Pre-approved loan offers for HDFC customers
2. Axis Bank – Shakti Business Loan
- Higher loan limits for women-led MSMEs
- Simplified documentation
- Attractive rates for existing account holders
3. Tata Capital – Business Loans for Women
- Loans up to ₹75 lakh
- Collateral-free
- Minimal documentation and quick disbursal
4. Lendingkart / Indifi / FlexiLoans (NBFCs)
| NBFC | Loan Amount | Features |
|---|---|---|
| Lendingkart | ₹50,000 – ₹2 Cr | Fast disbursal, minimal paperwork |
| Indifi | Up to ₹50 Lakh | Focus on retail, travel, education |
| FlexiLoans | ₹50,000 – ₹1 Cr | Custom offers for women |
✅ Why consider NBFCs?
Faster approval, digital application process, and flexible documentation
📝 Eligibility Criteria (General Guidelines)
| Criteria | Requirement |
|---|---|
| Age | 18–65 years |
| Business Type | Proprietorship, partnership, LLP, or private limited |
| Business Tenure | 6 months to 3+ years (varies) |
| Credit Score | 650+ preferred |
| Income Proof | ITR, bank statements, GST returns, etc. |
💡 Startups with no revenue can explore MUDRA Shishu or government-backed schemes.
📄 Documents Required
| Document Type | Examples |
|---|---|
| Identity Proof | Aadhaar, PAN, Passport |
| Address Proof | Utility bill, Rent agreement |
| Business Proof | Registration certificate, GST |
| Income Proof | ITR, bank statements |
| Other | Project report, quotations, etc. |
📊 Comparison Table – Loan Schemes for Women
| Scheme/Bank | Max Loan Amt | Collateral | Sector Focus | Best For |
|---|---|---|---|---|
| Stand-Up India | ₹1 crore | Optional | Manufacturing, Trading | SC/ST/Women in new ventures |
| PMMY – Mudra Yojana | ₹10 lakh | No | Any micro-business | Startups, rural entrepreneurs |
| Mahila Udyam Nidhi | ₹10 lakh | No | Small Scale Industry | Women-led micro units |
| Cent Kalyani Scheme | ₹1 crore | No | MSMEs | Self-employed women |
| Udyogini Scheme | ₹3 lakh | No | Rural & cottage biz | Rural low-income women |
| Tata Capital/NBFCs | ₹50 lakh+ | No | Any sector | Urban entrepreneurs |
💡 Tips for Women Entrepreneurs Applying for Loans
- Build a Good Credit History
Even for new businesses, personal credit matters. - Have a Solid Business Plan
Banks prefer ventures with clear projections and market analysis. - Choose Collateral-Free Options
Explore government schemes that don’t need assets as security. - Maintain Financial Records
Keep ITRs, GST returns, and bank statements up-to-date. - Apply Through Online Portals
Use PSB Loans in 59 minutes, Udyam registration portal, or partner NBFC platforms.
❓ FAQs
1. Can housewives apply for women entrepreneur loans?
Yes, if they plan to start a small business and meet minimum eligibility. Udyogini and Mudra Shishu are ideal starting points.
2. Do women get special interest rates?
Yes, many banks and NBFCs offer concessional rates (0.25% – 1% lower) for women borrowers.
3. What if I don’t have collateral?
Most schemes like MUDRA, Cent Kalyani, and NBFC loans offer collateral-free loans.
4. Can women apply jointly with their spouse?
Yes, especially in rural schemes. Co-applicant income can improve loan eligibility.
5. Are loans available for first-time women entrepreneurs?
Absolutely. Most schemes are aimed at first-time businesswomen, even with no prior credit history.
✅ Conclusion
With supportive policies, growing awareness, and flexible financial tools, women entrepreneurs in India have more opportunities than ever. Whether you are starting a boutique, a food truck, an ed-tech platform, or a manufacturing unit—there’s a loan tailored for you.
From MUDRA and Stand-Up India to private bank offerings, women can now dream big and fund their ventures with confidence.