Top 6 Government Loans to Support Women Entrepreneurs in 2025

Komal Bajpai

Author

Updated: 16-04-2025 at 12:33 PM

Women entrepreneurs are vital to India's economic growth. However, financial constraints often limit their ability to start or expand businesses. To support women in entrepreneurship, the Indian government has introduced various loan schemes. These govt schemes provide easy access to funds with low interest rates, helping women become financially independent. Let’s explore the top six government loan schemes available for women entrepreneurs in 2025.

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Annapurna Scheme

The Annapurna Scheme supports women entrepreneurs who run businesses in food services and catering. Eligible women entrepreneurs who operate their businesses under this scheme have access to ₹50,000 in working capital loans. Customers must repay the loan in 36 instalments after meeting collateral and guarantor approval requirements. Loans under this programme require assets as collateral to protect small business owners who need financial assistance.

Mudra Yojana

The Mudra Loan Scheme was launched under the Pradhan Mantri Mudra Yojana (PMMY) which provides money to female business founders. Under this scheme, qualifying borrowers receive funds of up to ₹10 lakh even without collateral. The loan is categorised into three segments: Shishu (up to ₹50,000), Kishor (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). Ease of access to business funding occurs through straightforward eligibility requirements available to female entrepreneurs.

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Stand Up India Scheme

The Ministry of Finance launched the Stand Up India Scheme which offers funding opportunities to women-led businesses alongside business ventures from Scheduled Castes (SC) and Scheduled Tribes (ST). Through this initiative, entrepreneurs receive financing to launch new businesses focused on manufacturing servicing or trading along with related agricultural activities. Eligible women can obtain loans starting from ₹10 lakh up to ₹1 crore through this programme. Under this scheme, non-individual businesses need at least 51 per cent ownership by women or SC or ST entrepreneurs.

Stree Shakti Yojana

The Stree Shakti Yojana provides funding which enables women entrepreneurs to launch their ventures with borrowing benefits included. As part of this central government initiative established in 2000 female entrepreneurs can receive a 0.05% decrease in their loan rate for any amount above 2 lakhs. Participation in the Entrepreneurship Development Programme becomes mandatory for women entrepreneurs seeking this financial support.

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Cent Kalyani Scheme

Under the Startup India initiative, the Central Bank of India supports women entrepreneurs through its Cent Kalyani Scheme to launch and scale micro or small businesses. Financial assistance through this scheme helps both new and established businesses operated by women which satisfy the terms of the MSME Act of 2006. Borrowers do not need to pledge any assets for the loan since this financing option lets business owners fund operations or procure hardware and expand their business operations.

Udyogini Scheme

Through the Udyogini Scheme, the government seeks to establish women's business ownership by offering economical interest rates on funding programmes. Entrepreneurs falling below ₹40,000 in annual income under this scheme can secure up to ₹1 lakh in financing. Through this programme, women from low-income families can launch their businesses independently from financial burdens.

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Conclusion

Indian authorities have launched loan programmes for women entrepreneurial ventures to promote both financial independence as well as business development. Through these schemes, women obtain easy access to funding for their ventures and the simultaneous ability to boost national economic performance. Entrepreneurs who want to start their business should research government-funded loan schemes because these funding options will enable them to transform their business concepts into operational realities.

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