The equal participation of women characterises the modern business world. The government has recognised the power of business in transforming women’s lives from different social and societal backgrounds. The several govt schemes for women entrepreneurs are a testament to the government’s commitment to this cause.
IF you’re a woman and aspiring to enter the MSME business world, a knowledge of these schemes can help you get started. In this article, we talk about ten such stellar govt schemes for female entrepreneurs in India in detail and how they’re taking the cause of gender equality forward in the modern MSME business landscape.
List of Government Schemes to Empower Women in India
The MSME sector that once brimmed with businessmen is now welcoming women from different social and societal backgrounds with open arms. The launch of various government schemes for female entrepreneurs in India has also encouraged women to come forward.
Here is a look at some of the top government schemes for women entrepreneurs entering the MSME world that can be found beneficial.
1. Annapurna Scheme
Many women are incredible chefs and can benefit economically by establishing their catering businesses. This government scheme for female entrepreneurs in India aims at supporting women who wish to start a catering unit. The Annapurna scheme allows women to borrow up to Rs. 50,000. This loan can be repaid in 36 total instalments and requires collateral and a guarantor for approval. The collateral for Annapurna scheme loans is taken in the form of assets.
Additional Read: 5 Types of Business Loans to Empower Women Entrepreneurs
2. Pradhan Mantri Rozgar Yojana
It is one of the most important govt schemes for women entrepreneurs. The purpose is to provide women with skill-based self-employment opportunities. This program applies to all types of businesses in the manufacturing, trade, and service sectors.
The maximum loan subsidy amount is 15% of the project costs, with a per-borrower cap of Rs 12,500. The maximum loan for a business is Rs. 2 lakhs, whereas the maximum loan for a service industry is Rs. 5 lakhs.
3. Mudra Yojana Scheme
One of the most popular Indian government schemes for women entrepreneurs in India, the Mudra Yojana scheme allows women to start different types of small or medium-sized companies including beauty parlours, tuition centres, tailoring shops, etc. The lower limit for the amount sanctioned under this government loan for women for business in India is Rs. 50,000, while the upper limit is Rs. 50 lakhs.
If the borrowed amount is less than Rs. 10 lakhs, the borrower does not have to give a collateral. The three categories of Mudra Yojana loans for women are:
- Shishu: The upper limit for Shishu loans is Rs. 50,000 and they can be used for business establishment.
- Kishor: Starting at Rs. 50,000 and going up to Rs. 5 lakhs, these business loans for women are meant for well-established enterprises.
- Tarun: Tarun loans help with business expansion. They range between Rs. 5 lakhs and Rs. 10 lakhs.
4. Cent Kalyani Scheme
Another of govt schemes for women entrepreneurs is Cent Kalyani Scheme. Under the Cent Kalyani Scheme, the Central Bank of India offers women entrepreneurs loans for running a business in sectors like retail and agriculture. These loans do not require any collateral or guarantor and can go up to Rs. 1 crore.
The interest rate on loans depends on market rates. The maximum loan repayment period is seven years.
5. Mahila Coir Yojana
This government schemes for female entrepreneurs in India provides women with spinning machines at reduced prices after training completion. Women starting their own coir business can get spinning equipment to process coir at 75% lower prices.
This program also covers 25% of the project cost and is available to rural women over 18 years of age.
6. Stand Up India Scheme
The Stand-up India scheme is a government schemes for female entrepreneurs in India targeted at women and other marginalized communities. Under this scheme, the government aims to provide loans to one scheduled caste, scheduled tribe, and woman per bank branch. Women can obtain loans ranging from Rs 10 Lakhs to 1 Crore to start or expand their businesses.
7. Stree Shakti Yojana
Under this govt scheme for women entrepreneurs, women are eligible for a 0.05% concession on loan amounts over Rs 2 Lakhs, along with additional benefits. This scheme is open to all women entrepreneurs. A key eligibility requirement is enrolment of women entrepreneurs in the Entrepreneurship Development Program (EDP) is enrolled in the
8. Udyogini Scheme
This government scheme for women entrepreneurs is aimed at making women self-reliant and helping them in self-development via economic help. Under this scheme, the government provides loans to women entrepreneurs at lower interest rates compared to commercial banks. Women with a family income of less than Rs 40000 are eligible for this scheme.
9. Mahila Udhyam Nidhi Scheme
This government scheme for women entrepreneurs in India aims to promote gender equity by providing financial assistance to women entrepreneurs in MSMEs and small-sector businesses at lower interest rates. The loan limit offered under this scheme is 10 Lakhs with a repayment tenure of a maximum of 10 years.
10. Trade-Related Entrepreneurship Assistance and Development Program
The Trade-Related Entrepreneurship Assistance and Development (TREAD) program aims to empower women by giving them the funding they need for projects involving training, counselling, and the skills they need to manage the companies successfully.
This government scheme for women entrepreneurs aims to increase the business acumen of women. The government contributes up to 30% of the final project cost under this program, as determined by the financial institutions. The remaining 70% of the project’s costs is provided as a loan by the lending institution so that the activities outlined in the project can be carried out.
Challenges Faced by Women Entrepreneurs in India
Women entrepreneurs in India still face several challenges. These include:
- Limited Finance
Women entrepreneurs don’t have as much access to finance as men. According to an IFC report in 2022, 90% of women entrepreneurs had not taken a loan from a formal financial institution.
- Access to Professional Network
Another challenge faced by women entrepreneurs is access to professional networks. According to a survey by Google Bain, 49% of respondents reported a lack of professional support resulting from restricted inclusion in professional networks.
- Lack of Training
A large section of women entrepreneurs report a lack of training as an impediment to business expansion.
Conclusion
While these government schemes for women entrepreneurs are excellent, women in business can also opt for NBFC loans. Tata Capital offers one of the most hassle-free MSME loans in India. To promote women empowerment, loans from Tata Capital guarantee quick approval and disbursement. Tata Capital SME business loans for women have a starting interest rate of 19% and a flexible and customized EMI schedule. We offer both online and offline application modes for all our business loans. You can find the relevant eligibility and documentation details on our website.
Contact us today to know more about Tata Capital loans for women in business.
Additional Read:Top 4 Investment Tips for Women to Start Their Financial Journey
FAQs
Some schemes related to women's entrepreneurship are: Annapurna Scheme, Pradhan Mantri Rozgar Yojna, 3. Mudra Yojana Scheme, Cent Kalyani Scheme, Mahila Coir Yojana.
Female entrepreneurs can get a loan at low interest rates by applying for one of the govt schemes for women entrepreneurs in India.
You can find information on some of these govt schemes for women entrepreneurs on various government portals, newspapers, internet searches and online articles. You can also contact various government departments to ask about a particular scheme.
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25 April 2025
6 mins read
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