Quick Summary
Business Loan for Women in India is a powerful financial tool empowering female entrepreneurs to start or expand their ventures. With support from various government schemes, including the Pradhan Mantri Mudra Yojana and MSME loan for women, these loans offer low-interest, collateral-free funding. Whether you’re exploring mudra loan for women or searching for business loan for women in India, flexible options exist to suit every need. Backed by initiatives for loans for women, these programs promote inclusive growth and economic independence.
A business loan for women is a type of loan provided by banks, financial institutions, and government schemes to support female entrepreneurs. It helps women to finance their business needs, such as purchasing equipment, expanding operations, or covering working capital requirements.
Women entrepreneurs in India can benefit from several advantages when applying for a business loan:
By leveraging the benefits of a Business Loan, you can take significant steps toward achieving your business goals and making your venture successful.
Many banks, financial institutions, and government agencies provide short-term and long-term loans for women to start a business in India. Here are the various types of business loans for women in India:
Many financial institutions offer small business loans, also known as SME loans. This small business loan for women is largely available at affordable interest rates for existing small and medium-scale businesses. However, some lenders also provide secured and unsecured funding for start-ups. You need to have a good credit score to avail of this loan. You can even choose a Line of Credit (LOC). This option is ideal to fulfill your short-term funding requirements.
If your needs exceed what you can borrow through an SME loan, you can apply for a commercial business loan. Ideal for medium-scale enterprises, this loan can be used to expand your business operations. However, your business has to be at least one year old to be eligible for this loan.
If you have shares, mutual funds, or life insurance policies, you can apply for a Loan against Securities. You will be entitled to a loan up to 60 to 70 percent of the market value of these investments. Since this is a secured loan, the eligibility requirements will be minimal.
If you are a homemaker wanting to start a new business from home, you can apply for a personal loan without any collateral. Since you need a good credit score and decent monthly income, you can add your spouse as your co-applicant and increase your chances of getting one. You can use this loan for any purpose.
These refer to the multiple finance schemes launched by the Government to promote women’s entrepreneurship. These include the Mudra Loan for Women, the MSME Loan for Women, and the Mahila Udyam Nidhi Scheme, which can help you get a ladies’ business loan at a very low interest rate. Although the eligibility criteria are minimal, the processing time of this loan is long.
Read more about business loan schemes by the government of India here.
From Shopclue’s founder, Radhika Agarwal, to Limeroad’s mastermind, Suchi Mukherjee, and Nykaa’s founder, Falguni Nayar, each of these women has added to the success of women in entrepreneurship in India. Having recognized the uniqueness that women bring into business ventures, the Government of India has taken some significant steps to provide startup business loan for women to start a business.
Here is a list of such women’s business loans from the government of India:
The Pradhan Mantri Mudra Yojana (PMMY), or the Mudra Loan for Women, is a government scheme for women entrepreneurs. It helps them stand strong and focus on building a better future. Here, you get a credit card called Mudra card that you can use to maintain the cash flow of your business. From ₹50,000, you can avail of a loan up to ₹10 Lakhs through this scheme. Available at an affordable interest rate, this loan requires no collateral. However, your business has to be in the non-agricultural, non-corporate, and non-farming sectors. Also, you must hold at least a 50% stake in your company.
The TREAD (Trade-Related Entrepreneurship Assistance Development) scheme is a government scheme where the Government provides 30 percent assistance for the project, with the rest of it funded by the bank that will appraise your business. Apart from the financial assistance, this scheme also provides the necessary counseling and training for the women to develop the required technical skills. However, you should have experience in developing and handling women-centric economic projects.
Mahila Udyam Nidhi Scheme, also known as the MUN scheme, is provided by the SIDBI (Small Industrial Development Bank of India). to encourage women’s entrepreneurship. This loan is made available for the MSMEs (Micro, Small, and Medium Enterprises) at a concessional rate. The project has to be manufacturing, production, or service-related. Your minimum investment should be ₹5 lakhs, and you should have a minimum stake of 51% in your business to qualify for this MSME Loan for Women.
Self-employed professionals such as beauticians, doctors, architects, and chartered accountants can apply for the Stree Shakti Package. You can get a loan up to ₹20 lakhs without collateral, provided you have more than a 50% stake in your business.
This refers to the multiple business loans offered by the BMB Bank. The RBI and SBI decide the interest rates for this business loan. You can get up to ₹20 crores as a loan under this scheme if you have collateral. If not, you can get a loan of up to ₹1 crore at a maximum 7-year repayment period.
| Scheme Name | Loan Amount | Interest Rate | Eligibility |
|---|---|---|---|
| MUDRA Loan Scheme | Up to Rs. 10 lakh | Starting from 7% | Women micro-entrepreneurs |
| Stand-Up India | Rs. 10 lakh – 1 crore | 6.5% – 8% | SC/ST and women entrepreneurs |
| Annapurna Scheme | Up to Rs. 50,000 | As per bank policies | Women in the food business |
| Stree Shakti Yojana | Varies by bank | 0.5% concession | Women with 50% ownership |
Apart from the government scheme, there are also other private schemes, such as Bajaj Finance Business Loan, that support women entrepreneurs.
“Here are some of the latest business loan schemes for women entrepreneurs in India for 2025:”
Women entrepreneurs must fulfill certain eligibility requirements to apply for a business loan. These criteria vary based on the lender, but generally include:
Meeting these eligibility criteria is essential for securing a Business Loan. Review the specific requirements of the lender you’re applying to, as they may have additional criteria.
When applying for a Business Loan, you must gather some important documents. Here is a list of the common documents required:
Having these documents ready can help you apply for a Business Loan smoothly. Check with your chosen lender for any additional documents they might require.
Applying for a Business Loan can help turn your entrepreneurial dreams into reality. Here’s a simple guide to get you started:
Following these steps can make applying for a Business Loan straightforward and stress-free.
As per a survey, more than 85 percent of women entrepreneurs faced challenges while availing loans from nationalized banks. Here are a few such challenges you need to overcome if you want your business loan application to be approved by your lender:
A good credit score is significant to get your business loan approved at a low interest rate. It shows how disciplined you are in paying your monthly loan installments. A CIBIL score of 750 or higher can make it easy for you to get your loan. Check your credit score with a reputed credit rating agency before submitting your loan application.
This is one of the reasons that can destroy your lender has confidence in you. Cashflow establishes your capacity to repay your loans after managing your operating expenses. This is why most lenders will ask you to submit your bank and business financial statements.
Too much debt can reduce your chances of getting a business loan for women. This will give the lender the impression that you may be unable to repay the loan within the specified time.
A robust business plan is necessary for every lender to approve your loan, especially if your business is a start-up. Even if you are not making much of a profit currently, this document will help the lender approve your loan by considering the prospects of your business.
Most business loans that are given to women entrepreneurs do not require collateral. However, if you need a huge amount, you must provide collateral. Also, having collateral can give you a better chance to qualify for the loan at a lower interest rate since the risk would be low.
These tips will simplify your journey to secure government business loans for women in India.
Access to a business loan for women is a game-changer for female entrepreneurs looking to grow or start a business in India. With tailored government schemes like the Pradhan Mantri Mudra Yojana, MSME loan for women, and other mudra loan for women options, financing is now more accessible and inclusive. These loans for women come with flexible terms, low interest rates, and minimal collateral requirements. Whether you’re applying for a business loan for women in India or exploring various business loans for women, the right support is available to turn your entrepreneurial dreams into reality.
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Yes, housewives can apply for business loans. Schemes like Mudra Yojana and Udyogini Scheme are designed to support women, including housewives, in starting their businesses.
The Pradhan Mantri Mudra Yojana (PMMY) offers loans up to ₹10 lakhs without collateral. It is divided into three categories: Shishu (loans up to ₹50,000), Kishor (loans from ₹50,000 to ₹5 lakhs), and Tarun (loans from ₹5 lakhs to ₹10 lakhs).
Several government schemes support female entrepreneurs in India, including Mudra Yojana, Stand-Up India Scheme, Annapurna Scheme, Dena Shakti Scheme, and Mahila Udyam Nidhi Scheme.
The government of India has started providing loans to women under various schemes to promote entrepreneurship. You can apply for any of these loans on the official websites of these organizations.
Yes, women can get loans for businesses. Many financial institutions offer loans specifically designed to support female entrepreneurs, and there are also government programs and grants aimed at promoting women-owned businesses.
Yes, a housewife can apply for a loan to start a business from home. You can apply for a personal loan and include your spouse as the co-applicant. Otherwise, you can apply for a business loan under government schemes and provide some collateral.
The interest rates at which banks provide business loans for women entrepreneurs differ from one bank to the other. A comparative study of banks providing business loans for women will help you understand which one is the best.
Features of Mudra Loan for women
It provides financial assistance to small and micro enterprises in the non-farm, non-corporate sector. Here are some of the features and benefits of a Mudra loan: It covers loans up to Rs. 10 lakh under three categories: Shishu, Kishor, and Tarun.
1. Food Business. Food Business: Best Business ideas for women.
2. Freelancing. Freelancing is the best way to become self-employed.
3. Business in Arts or Handicrafts.
4. Career Coach.
5. Landscape Designer.
6. Clothing Store.
7. E-commerce Store Owner.
8. Provide IT & Software Services.
This government scheme provides women entrepreneurs with collateral-free loans up to ₹3 lakh, offering affordable interest rates and flexible terms to help start or grow their businesses.
The Mudra loan scheme provides up to a 50% subsidy on interest rates for eligible small business owners, making it easier and more affordable to secure funding for their ventures.
Yes, an Income Tax Return (ITR) is generally required to apply for a PMEGP loan, as it helps verify the applicant’s financial status and ensures eligibility for the scheme.
Yes, schemes like Mukhyamantri Mahila Utkarsh Yojana offer interest-free business loans up to ₹1 lakh to women entrepreneurs, helping them start or grow their businesses with easy terms and government support.
Women can apply for startup business loans through government schemes like Pradhan Mantri Mudra Yojana and Stand-Up India, offering low-interest, collateral-free funding to help launch and grow new ventures.
Authored by, Samiksha Samra
Digital Content Writer
Samiksha is a writer with a passion for sharing ideas and a knack for detail. She loves turning concepts into meaningful, engaging content. With a strong background in research and content strategy, she crafts clear, easy-to-understand narratives that resonate with readers. Her curiosity drives her to explore new subjects, ensuring every piece she creates is both insightful and impactful.
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Chegg India does not ask for money to offer any opportunity with the company. We request you to be vigilant before sharing your personal and financial information with any third party. Beware of fraudulent activities claiming affiliation with our company and promising monetary rewards or benefits. Chegg India shall not be responsible for any losses resulting from such activities.
