What makes business loans crucial for women entrepreneurs in India? The answer lies in the growing need for financial independence and equal opportunities in business. Women-led enterprises are expanding across sectors, but many face challenges due to limited access to capital.
To address this gap, various banks, government schemes, and private institutions offer specially designed business loans for women. These loans not only provide financial support but also come with benefits like lower interest rates, flexible repayment options, and collateral-free funding. They empower women to start, scale, and sustain their ventures with improved workflow management, thereby boosting entrepreneurship and economic growth in India.
In this blog, we will take a look at the Top 15 Loans for Women Entrepreneurs for there Business.
The Significance of Financial Support for Women Entrepreneurs
- Promotes Economic Independence: Financial support enables women to achieve independence, empowering them to make decisions, sustain their businesses, and contribute meaningfully to their families and communities.
- Encourages Business Growth: Access to loans and funding allows women entrepreneurs to expand operations, upgrade technology, and explore new markets, fostering long-term growth and stability.
- Reduces Gender Barriers: Providing financial assistance helps break traditional gender barriers, giving women equal opportunities in business and reducing disparities in entrepreneurship participation.
- Enhances Job Creation: Women-led businesses generate employment opportunities for others, especially women, contributing to economic development while fostering inclusive and diverse workplaces.
- Improves Access to Resources: Financial aid enables entrepreneurs to invest in training, mentorship, and resources, helping them develop competitive skills and innovative business practices.
- Builds Confidence and Leadership: Access to funding instills confidence in women entrepreneurs, motivating them to lead, innovate, and make impactful contributions within their industries.
- Supports Innovation and Creativity: Financial backing allows women to pursue unique business ideas, encouraging innovation and creativity, which can lead to disruptive solutions in various sectors.
- Contributes to National Growth: Women entrepreneurs with financial support significantly contribute to GDP growth, innovation, and sustainable development, strengthening the nation’s economic progress and resilience.
List of Top 15 Business Loans for Women Entrepreneurs
1. Annapurna Scheme
The Annapurna Scheme offers working capital to women entrepreneurs who practice food catering companies.
NSAP provides a platform where women can apply for the Annapurna Scheme. It includes costs such as buying utensils and kitchen equipment as well as raw materials. The scheme is offered by banks and offers loans up to the value of 50,000 with a repayment period of three years. The capital enables women to start or develop their catering businesses.
It involves collateral and a guarantor, though it makes repayment a flexible approach allowing women in food-related industries to take it.
Features:
- Interest Rate Range: As per lending bank guidelines, usually subsidized for women.
- Loan Amount: Up to ₹50,000.
- Purpose: To meet working capital needs like utensils, kitchen equipment, and raw materials in food catering businesses.
- Nature of Loan: Term loan for daily business operations.
- Repayment Tenure: Up to 36 months with 1-month moratorium.
- Processing Fee: As per bank norms.
- Collateral/Security: Collateral and guarantor required.
- Insurance: Generally applicable for financed assets.
- Eligibility: Women entrepreneurs running small catering ventures in food-related businesses.
2. Stree Shakti Package for Women Entrepreneurs
SBI has a package called Stree Shakti, which assists women who have ownership in small business.
It offers concessional interest rates to the majority owners and individuals in entrepreneurship programs. Without providing security, women entrepreneurs are able to take loans up to ₹5 lakhs.
The scheme assists in encouraging women-owned startups and small enterprises through easier access to crediting facilities, which motivates women to venture, and they are assured to take any chance that comes their way without the worry of relying on personal capital.
Features:
- Interest Rate Range: Concessional, with 0.5% reduction on prevailing rates.
- Loan Amount: Up to ₹5 lakhs (collateral-free); higher amounts as per bank norms.
- Purpose: To support women-owned businesses across sectors like retail, trade, and services.
- Nature of Loan: Term loan or working capital facility.
- Repayment Tenure: Flexible based on project needs.
- Processing Fee: Nil or concessional.
- Collateral/Security: Not required up to ₹5 lakhs.
- Insurance: May cover assets financed under the loan.
- Eligibility: Women with majority ownership and completed entrepreneurship training.
3. Dena Shakti Scheme
Dena Shakti Scheme of Dena Bank (since 2009, Bank of Baroda) offers loans up to 20 lakhs to women entrepreneurs in the agricultural, manufacturing and retail business and micro-enterprise.
It has a concessional interest rate at 0.25% on loans. The initiative aims at empowering women to venture in various industries by availing finances to grow their businesses.
Small businesswomen can avail collateral-free loans up to 10 lakhs under MSME guidelines, which makes it a favorable program in that regard.
Features:
- Interest Rate Range: Concessional with 0.25% reduction.
- Loan Amount: Up to ₹20 lakhs.
- Purpose: To finance women in agriculture, retail, manufacturing, and micro-enterprises.
- Nature of Loan: Term loan or working capital loan.
- Repayment Tenure: 3–7 years, depending on the project.
- Processing Fee: Concessional.
- Collateral/Security: Collateral-free up to ₹10 lakhs under MSME norms.
- Insurance: Coverage required for assets.
- Eligibility: Women entrepreneurs running small to medium businesses in eligible sectors.
Suggested Read: NBFC Companies in India
4. Bharatiya Mahila Bank Business Loan
The Bharatiya Mahila Bank that is currently under merger with SBI provided business loans to women only. Entrepreneurs would be able to get up to 20 crores to finance manufacturing ventures and lesser amounts to finance other ventures.
These loans had concessional interest rates and non binding repayment terms. Under the CGTMSE scheme, women were also given collateral-free loans to the tune of 1 crore.
Through this project, women had been empowered economically as they ventured into large enterprises, particularly those that demanded high levels of investments.
Features:
- Interest Rate Range: Concessional, linked to MCLR.
- Loan Amount: Up to ₹20 crores for manufacturing; smaller limits for other sectors.
- Purpose: To encourage large and small women-led ventures.
- Nature of Loan: Term loan and working capital financing.
- Repayment Tenure: Flexible depending on loan amount.
- Processing Fee: Nil or concessional.
- Collateral/Security: Collateral-free up to ₹1 crore under CGTMSE.
- Insurance: Required for assets financed.
- Eligibility: Women entrepreneurs seeking financial assistance for business growth across industries.
5. Orient Mahila Vikas Yojana Scheme
The Orient Mahila Vikas Yojana is an initiative at the Oriental Bank of Commerce that assists women when they own 51 percent of a business.
Loans are 10 to 25 lakhs and the interest rate is lower than the standard loans. The scheme gives a waiver of collateral on loans of up to 25 lakh rupees to the small-scale industries.
It encourages women entrepreneurs to take the lead and develop medium-sized businesses without heavy financial load and is therefore very useful to expanding business in various sectors.
Features:
- Interest Rate Range: Concessional, lower than standard loans.
- Loan Amount: ₹10 lakhs – ₹25 lakhs.
- Purpose: To empower women with 51% ownership in businesses.
- Nature of Loan: Term loan for expansion and growth.
- Repayment Tenure: Flexible, as per bank terms.
- Processing Fee: Concessional.
- Collateral/Security: Waived up to ₹25 lakhs for small-scale industries.
- Insurance: Comprehensive insurance for financed assets.
- Eligibility: Women entrepreneurs owning majority share in registered businesses.
6. Mudra Yojana Scheme for Women
The Government of India provides loans without collateral of up to 10 lakhs to women entrepreneurs under the name of Mudra Yojana.
It is divided into three Shishu (Up to 50,000), Kishor (50,000-5 lakhs), and Tarun (5-10 lakhs). The scheme assists women in small businesses, start ups, and self-employment projects. It offers repayment flexibility and cheap rates.
Women starting small business enterprises such as boutiques, salons, and local providers of services are the most common borrowers of this loan.
Features:
- Interest Rate Range: 8.40% – 12% approx. depending on the lender.
- Loan Amount: Up to ₹10 lakhs (Shishu: ₹50,000; Kishor: ₹50,000–₹5 lakhs; Tarun: ₹5–₹10 lakhs).
- Purpose: To finance micro/small businesses and self-employment.
- Nature of Loan: Term loan or working capital.
- Repayment Tenure: 3–5 years.
- Processing Fee: Nil.
- Collateral/Security: Not required.
- Insurance: Available for financed business assets.
- Eligibility: Women entrepreneurs starting small ventures like salons, boutiques, or shops.
Suggested Read: 7 Days Loan App List in India
7. Udyogini Scheme
The Women Development Corporation supports the Udyogini Scheme, which provides women in retail, small business, and agricultural with loans of up to 3 lakh rupees.
It targets women who are below the poverty line in terms of subsidies and low interest loans. Most of the beneficiaries of this are women in the rural and semi-urban areas because this facilitates financial and self-sustaining livelihoods.
The scheme promotes inclusive entrepreneurship among communities by supporting self-employed women as well as small business owners.
Features:
- Interest Rate Range: Low, with subsidies for poor women.
- Loan Amount: Up to ₹3 lakhs.
- Purpose: To support women in agriculture, retail, and small-scale industries.
- Nature of Loan: Term loan.
- Repayment Tenure: 3–7 years.
- Processing Fee: Minimal.
- Collateral/Security: May be waived depending on the loan size.
- Insurance: Coverage for business equipment/assets financed.
- Eligibility: Women below poverty line, rural entrepreneurs, and small business owners.
8. Cent Kalyani Scheme
Central Bank of India offers lending facilities to women entrepreneurs in manufacturing, agriculture and retail trade as part of the Cent Kalyani Scheme, which gives loans up to 100 lakhs.
The scheme lacks collateral or guarantors and is therefore extremely accessible. Women can utilise the capital to work or expand their business.
It has no processing fees and can be repaid over a flexible period, which is especially useful when women need to scale small and medium-sized enterprises effectively.
Features:
- Interest Rate Range: Concessional, linked to MCLR with subsidy.
- Loan Amount: Up to ₹100 lakhs.
- Purpose: To support women in manufacturing, agriculture, and small enterprises.
- Nature of Loan: Term loan and working capital facility.
- Repayment Tenure: 3–7 years.
- Processing Fee: Nil.
- Collateral/Security: Not required; no guarantor needed.
- Insurance: Compulsory for stocks, machinery, and equipment.
- Eligibility: Women in MSMEs, agriculture, or professional trades.
9. Mahila Udyam Nidhi Scheme
Mahila Udyam Nidhi Scheme was initiated by Punjab National Bank and provides loans of up to 10 lakhs of money to women entrepreneurs to start up small businesses.
It offers funding aid at a repayment period not exceeding 10 years. The scheme specifically aids rehabilitation of ill small-scale units and assists women to surmount barriers in finances.
Its concessional interest rates and flexible repayment will see aspiring entrepreneurs expand comfortably in competitive business environments.
Features:
- Interest Rate Range: Subsidised as per PNB guidelines.
- Loan Amount: Up to ₹10 lakhs.
- Purpose: To set up new businesses and rehabilitate sick small-scale units.
- Nature of Loan: Term loan for business establishment.
- Repayment Tenure: Up to 10 years.
- Processing Fee: Minimal.
- Collateral/Security: Required depending on loan size.
- Insurance: Business assets financed are insured.
- Eligibility: Women setting up small industries or reviving sick units.
10. Synd Mahila Shakti Scheme
Synd Mahila Shakti Scheme, a scheme of Syndicate Bank, offers financial aid to women entrepreneurs in retail, education, housing and agriculture.
Depending on the nature of the business, there are loans up to ₹5 crores. The scheme also provides a scheme of interest concession to women and a longer period of repayment.
It promotes small businesses and startups that are run by women to thrive without having to worry about financial limitations. Having a wide scope of areas covered, it is a solid resource to would-be women entrepreneurs.
Features:
- Interest Rate Range: Concessional (varies as per business profile, ~9%–11% p.a.)
- Loan Amount: Up to ₹5 crores
- Purpose: To fund business expansion in retail, agriculture, education, and housing sectors
- Nature of Loan: Term loan & working capital support
- Processing Fee: Nominal (varies by bank)
- Collateral/Security: Required beyond permissible limits
- Repayment Tenure: Flexible, depending on loan size
- Special Benefit: Interest concessions for women borrowers
11. Pradhan Mantri Rozgar Yojana (PMRY)
The PMRY program also encourages jobless young people and females to start small businesses in manufacturing, services, and trading through lending.
Women entrepreneurs are given preference and are easily eligible and financed at low interests. Business setups for up to 10 lakhs loan can be offered with repayment flexibility.
The scheme encourages self-employment of women especially in the rural and semi-urban regions so that they can become financially empowered and contribute effectively in the local economy.
Features:
- Interest Rate Range: 8.75%–12% p.a. (subsidised for women)
- Loan Amount: Up to ₹10 lakhs
- Purpose: To support self-employment in manufacturing, services, and trading
- Nature of Loan: Term loan and working capital
- Processing Fee: Nil or minimal, depending on the bank
- Collateral/Security: Exempted for loans up to ₹1 lakh
- Repayment Tenure: 3–7 years
- Special Benefit: Preference for women & unemployed youth
12. Stand-Up India Scheme
The Stand-Up India Scheme provides bank loans of ₹10 lakhs up to ₹1 crore to women entrepreneurs and SC/ST classes.
It mainly finances greenfield projects in service, manufacturing, and trading sectors. Loans are composite, including both working capital and term loans.
With the growing use of Loan Apps in India, applicants can conveniently apply through digital platforms like SBI YONO, bob World, and Canara Bank apps, making the scheme more accessible and faster to avail.
The scheme makes financial inclusion possible by giving credit facilities to women who start new businesses. It is a key ingredient in motivating women to take on ambitious business ventures with a lot of confidence.
Features:
- Interest Rate Range: 7.5%–9.5% p.a. (linked to MCLR + spread)
- Loan Amount: ₹10 lakhs – ₹1 crore
- Purpose: Greenfield projects in manufacturing, trading, and services
- Nature of Loan: Composite loan (term loan + working capital)
- Processing Fee: 1% of the sanctioned loan amount
- Collateral/Security: CGFSIL (government guarantee) available
- Repayment Tenure: Up to 7 years with moratorium of 18 months
- Special Benefit: Exclusively for women & SC/ST entrepreneurs
13. Shakti Scheme by Bank of Baroda
Bank of Baroda Shakti Scheme is a loan program offered to women entrepreneurs in the agricultural, retail, micro-enterprise and professional sectors.
The amount of loan depends on the type of business and the interest rate is also concessional. Women are allowed to take loans to a maximum of 20 lakhs in retail trade and 50 lakhs in other businesses.
The scheme eliminates financial pressures and motivates women to begin or grow their businesses, which empower women in the economy.
Features:
- Interest Rate Range: 8.65%–10.70% p.a. (concessional for women)
- Loan Amount: Up to ₹20 lakhs (retail), up to ₹50 lakhs (other sectors)
- Purpose: Agriculture, retail, micro-enterprises, and professional services
- Nature of Loan: Term loan & working capital
- Processing Fee: Waived for certain categories
- Collateral/Security: As per RBI & CGTMSE norms
- Repayment Tenure: 3–7 years
- Special Benefit: Lower interest rate for women borrowers
14. TREAD Scheme (Trade Related Entrepreneurship Assistance and Development)
The Government of India has introduced the TREAD Scheme that provides women business owners with credit support through NGOs, especially in non-farm endeavors.
The government gives a maximum grant of 30 percent of total and the rest will be funded by banks. It supports training and capacity building and entrepreneurial advice.
The scheme helps women in rural and semi-urban locations, which makes the business practices sustainable. It is particularly beneficial to women who want financial assistance as well as mentoring.
Features:
- Interest Rate Range: 8.5%–11% p.a.
- Loan Amount: Up to ₹20 lakhs (via NGOs and banks)
- Purpose: For non-farm activities, training, and entrepreneurship
- Nature of Loan: Composite (loan + government grant)
- Processing Fee: Nominal
- Collateral/Security: Depends on implementing bank
- Repayment Tenure: As per bank guidelines (3–7 years)
- Special Benefit: 30% grant assistance by the Government of India
15. Annapurna Credit Scheme by Bharatiya Mahila Bank
The Annapurna Credit Scheme is one program that aims at women intending to open food catering businesses by extending credit in the form of loans up to ₹50,000.
It includes costs such as utensils, raw materials and working capital requirements. The payback may be done in 36 installments, with a one month moratorium.
Although there are collateral and guarantor requirements, the scheme will facilitate women to start small catering businesses. It assists potential women entrepreneurs to venture into food related ventures with confidence and money.
Features:
- Interest Rate Range: 11.5%–13% p.a.
- Loan Amount: Up to ₹50,000
- Purpose: To support food catering businesses (utensils, raw materials, working capital)
- Nature of Loan: Term loan
- Processing Fee: Nil / minimal charges
- Collateral/Security: Guarantor & collateral required
- Repayment Tenure: Up to 36 months (with 1-month moratorium)
- Special Benefit: Designed exclusively for women in the food sector
Ending Thoughts
In conclusion, business loans for women entrepreneurs have become a powerful tool to drive financial independence and business growth. These loan schemes not only offer monetary support but also provide women with the confidence to turn their ideas into sustainable enterprises. With benefits like reduced interest rates, collateral-free funding, and government-backed initiatives, women entrepreneurs today have greater access to resources that were once limited.
By bridging the funding gap, these loans foster innovation, job creation, and inclusive development. As more women step into leadership roles in business, these financial opportunities will continue to play a vital role in shaping India’s entrepreneurial ecosystem, paving the way for a more balanced and progressive economy.
FAQs
What are business loans for women entrepreneurs?
Business loans for women entrepreneurs are financial aids designed to support women in starting, managing, or expanding their businesses with flexible terms and benefits.
Do women entrepreneurs get lower interest rates on loans?
Yes, several banks and government initiatives provide subsidised or lower interest rates specifically for women-led businesses.
How can women apply for business loans?
Applications can be submitted through banks, NBFCs, or government portals by providing business plans, identity proof, and financial documents.
Are business loans for women collateral-free?
Many government and private schemes offer collateral-free loans, making it easier for women to access funding without pledging assets.
