Women in India can access several government-backed loan schemes designed to support financial independence and business growth. These schemes offer instant or quick-access funding with minimal documentation and favourable terms.
If you are looking for financial assistance to start or expand your business, purchase equipment, or cover personal expenses, these schemes could be worth considering.
Government-backed loan schemes often come with lower interest rates, flexible repayment terms, and minimal collateral requirements. These benefits make them a viable option, especially for those who may struggle to access traditional bank loans.
If you need funds urgently, these loans could help with business expansion, education, skill development, or emergency expenses. However, before applying, it is essential to understand the eligibility criteria, loan limits, and application process.
Here are some of the most popular government loan schemes for women:
The Pradhan Mantri Mudra Yojana (PMMY) provides financial assistance to women entrepreneurs, self-employed professionals, and small business owners. The scheme is divided into 3 categories based on the loan amount:
● Shishu – Loans up to ₹50,000 for startups and micro-businesses
● Kishor – Loans between ₹50,000 and ₹5 Lakhs for growing businesses
● Tarun – Loans between ₹5 Lakhs and ₹10 Lakhs for established businesses
Women applying for this scheme can get themselves collateral-free loans with competitive interest rates. This funding can support businesses such as tailoring, beauty salons, food processing units, or handicrafts.
You can apply for a Mudra loan through public sector banks, private banks, and regional rural banks. The application requires basic documents such as identity proof, address proof, and a business plan.
The Stand-Up India Scheme supports women entrepreneurs from Scheduled Castes, Scheduled Tribes, and other minority groups. Under this scheme, you can get loans between ₹10 Lakhs and ₹1 Crore for setting up a manufacturing, trading, or service-based enterprise.
● Minimum repayment period of 7 years
● Composite loan covering working capital and term loan
● Assistance in business development and mentorship
● The applicant must be a woman entrepreneur or from an SC/ST category
● The business should be a greenfield enterprise, meaning it should be a new venture
● At least 51% of the enterprise must be owned by a woman
Launched by Small Industries Development Bank of India (SIDBI), this scheme provides financial support to women-owned businesses. If you need funds for setting up a new enterprise or expanding an existing one, this scheme could be beneficial
● Loans of up to ₹10 Lakhs
● Repayment period of up to 10 years
● Available for sectors like manufacturing, retail, and small-scale industries
● KYC documents (Aadhaar, PAN, Voter ID)
● Business registration proof
● Income tax returns (if applicable)
The Udyogini Scheme offers loans to women entrepreneurs, particularly those from economically weaker sections. It aims to promote financial independence by supporting small businesses in agriculture, trade, and manufacturing.
● Women aged between 18 and 55 years
● Family income should not exceed ₹1.5 Lakhs per year (exceptions for disabled women and widows)
● Loans up to ₹3 Lakhs
● No collateral required for lower loan amounts
● Subsidised interest rates for eligible applicants
This scheme could be useful if you need a small loan for a home-based or micro-business setup.
If you are running or planning to start a food catering business, the Annapurna Scheme could be an option. This scheme, backed by the State Bank of India (SBI), helps women entrepreneurs in the food industry secure loans for purchasing kitchen equipment, utensils, and raw materials.
● Maximum loan amount of ₹50,000
● Repayment period of up to 3 years
● No collateral required for smaller loan amounts
This scheme is ideal for women looking to start home-based tiffin services, bakeries, or catering businesses.
Before applying for a government loan scheme, consider the following factors:
Choose a scheme based on whether you need funds for a business, education, or personal needs
Ensure that you meet the specific income, age, and business ownership requirements
Check the interest rate, repayment period, and any additional charges
Ensure you have the necessary documents required for the personal loan for women
Government-backed loan schemes for women provide financial support with minimal risk. Whether you need a loan for business expansion or to meet personal financial needs, these schemes could be a reliable option.
Before applying, assess your financial requirements, compare available options, and ensure you meet the eligibility criteria. If you require immediate funds, consider approaching a bank or NBFC for faster disbursal. A well-planned loan decision could help you achieve your financial goals efficiently.
Disclaimer: This content is part of a marketing initiative. No TNIE Group journalists were involved in the creation of this content.