Mahila Shakti, Business Growth Ki Pragati
In English: women’s strength drives business growth.
Loans and Government Schemes for Women Entrepreneurs in India
Ready to start or grow your business, but unsure which loan or scheme is meant for you, or worried about collateral?
Several central schemes give women entrepreneurs better access to credit, from Stand-Up India loans for new ventures to higher credit guarantee cover and a higher PMEGP subsidy. GRO-MSME helps you choose what fits, prepare an application lenders can approve, and connects you with mentoring and a network of fellow entrepreneurs.
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GRO-MSME provides guidance, application support and mentoring through Early Grow Advisory Services Pvt Ltd. Loans are decided by lenders and scheme benefits by the implementing agencies; none is guaranteed.
Which Loans and Schemes Are Available for Women Entrepreneurs in India?
Women entrepreneurs in India can use general MSME finance and several schemes with specific benefits for women. Stand-Up India supports bank loans from ₹10 lakh to ₹1 crore for a new (greenfield) enterprise led by a woman or an SC/ST entrepreneur. MUDRA loans go up to ₹20 lakh for micro enterprises. CGTMSE gives higher guarantee cover on loans to women-led micro and small units, which helps collateral-free lending. PMEGP gives women a higher special-category subsidy. Under the Public Procurement Policy, 3% of central government purchases are earmarked for women-owned micro and small enterprises.
Which Schemes Help Women-Owned Businesses?
Central schemes with specific benefits for women. Many states run their own programmes as well.
| Scheme | What it offers women entrepreneurs | Key condition |
|---|---|---|
| Stand-Up India | Composite bank loan (term loan and working capital) from ₹10 lakh to ₹1 crore | For a greenfield enterprise; in non-individual enterprises, at least 51% holding and control by a woman or SC/ST entrepreneur |
| MUDRA (PMMY) | Loans up to ₹20 lakh: Shishu, Kishore, Tarun and Tarun Plus | Non-farm income-generating micro enterprises |
| CGTMSE | Higher guarantee cover for women entrepreneurs, which supports collateral-free loans, and a concession in the guarantee fee | Eligible micro and small enterprises; the lender applies for the cover |
| PMEGP | Special-category margin money subsidy of 25% (urban) or 35% (rural); own contribution 5% | New micro units; project ceilings apply |
| Public Procurement Policy for MSEs | 3% of annual central government procurement earmarked for women-owned micro and small enterprises | Registered micro or small enterprise owned by women |
The government announced a revamp of Stand-Up India in 2026 with higher limits; check standupmitra.in for the current terms before applying.
Find the Right Loan or Scheme
Share your business, stage and how much you need. GRO-MSME will call you back with the options that fit.
- Free call back from GRO-MSME experts
- Eligibility check and document guidance
- Support from application to follow-up
Prefer to talk? +91-9811312259
What Support Goes Beyond Finance?
GRO-MSME’s Women Empowerment work covers more than loans.
Skill development and training
Sessions on finance, compliance and running a business, including GRO-MSME webinars.
Mentorship and networking
Access to experienced entrepreneurs and the GRO-MSME Club network.
Business development
Support with planning, market access and digital presence.
Read the report of our She Leads, She Scales webinar for women entrepreneurs.
What Are the Eligibility Considerations?
Scheme rules decide eligibility for the benefit; the lender decides the loan.
What helps
- Ownership and control clearly with the woman entrepreneur, as the scheme requires
- A viable business plan or project report
- Udyam Registration for an existing business
- A clean credit record and bank statements
- Relevant experience or training in the activity
Common stumbling blocks
- Business run by a family member while the loan is in the woman’s name only
- Applying for Stand-Up India for an existing business (it is for new ventures)
- Unclear ownership in partnership or company documents
- No plan for the own contribution or margin
- Missing KYC or mismatched names across documents
What Documents Are Usually Required?
Lists vary by scheme and lender. Tick what you have.
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How to Get Started with GRO-MSME
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Share your plan
Your business idea or current business, and what you need funding for.
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Scheme mapping
We identify the loans and schemes you may qualify for and explain their conditions.
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Prepare the file
We help with the project report, ownership documents and KYC.
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Apply and follow up
We help you apply to lenders or scheme portals and respond to queries.
Related GRO-MSME Services
Loans and Schemes for Women Entrepreneurs: Frequently Asked Questions
What loans are available for women entrepreneurs in India?
Women can apply for regular MSME loans and for scheme-linked loans such as Stand-Up India (₹10 lakh to ₹1 crore for new ventures), MUDRA loans up to ₹20 lakh, CGTMSE-backed collateral-free loans with higher guarantee cover for women, and PMEGP loans with a higher subsidy for women. Many states run additional schemes.
What is the Stand-Up India scheme for women?
Stand-Up India facilitates bank loans from ₹10 lakh to ₹1 crore for a greenfield enterprise in manufacturing, services, trading or allied agriculture activities, set up by a woman or an SC/ST entrepreneur. In a non-individual enterprise, at least 51% must be held and controlled by such an entrepreneur. A revamp with higher limits was announced in 2026.
Can women get business loans without collateral?
Often, yes. CGTMSE gives higher guarantee cover on loans to women-led micro and small enterprises, which lets lenders lend without collateral, and MUDRA loans are generally given without collateral. The lender makes the final decision.
Is there an interest-free government loan for women entrepreneurs?
Central schemes generally do not offer interest-free loans. They offer subsidies, guarantee cover and concessional terms. Some state programmes offer interest subsidies; check your state’s schemes.
Do women get a higher PMEGP subsidy?
Yes. Women are in the special category under PMEGP, which gives a margin money subsidy of 25% in urban areas and 35% in rural areas, with a 5% own contribution.
Does GRO-MSME help women entrepreneurs apart from loans?
Yes. GRO-MSME’s Women Empowerment support includes training, mentorship, networking and business development, alongside finance and scheme guidance.
Build the Business You Have Planned
Tell us about your business idea or current business, and we will map the loans and schemes that fit. Mahila Shakti, Business Growth Ki Pragati — talk to GRO-MSME.
- Free call back from GRO-MSME experts
- Eligibility check and document guidance
- Support from application to follow-up
Prefer to talk? +91-9811312259